• Q2 profit jumped 129.3% to $79.8m
  • Sales up 36.4% to $800.5m
  • Growth driven by pent-up demand
Skechers booked record profit and sales in the quarter

Skechers booked record profit and sales in the quarter

Fast-growing footwear business Skechers USA more than doubled its second-quarter profit, helped by pent-up demand for its products in the US and abroad.

Net earnings reached a record US$79.8m for the three months to 30 June, compared to $34.8m. Gross margin improved to 46.8% from 45.9% in the prior year.

Sales jumped 36.4% to a record $800.5m from $587.1m last year, driven by double-digit growth in the group's three main business channels: domestic wholesale with an average price per pair increase of 9%; international wholesale, which improved by 60%; and Skechers domestic and international retail stores with comparable store sales rising 12.9%.

"The continued strong demand for our product worldwide led to record quarterly financial results for the second quarter—including net sales, earnings from operations and earnings per share," said COO and CFO David Weinberg.

He added that Skechers benefitted from pent-up demand after the end of labour disputes at US ports in the first quarter, as well as a shift in back-to-school shipments thanks to increased demand in domestic and international markets.

"With increased year-over-year backlogs at the end of June, strong incoming order rates and July sales, as well as the positive sell-through reports from wholesale and an additional 125 to 135 company-owned and third-party-owned Skechers retail stores planned to open later this year, we believe that we will continue to achieve new sales and profit records through 2015," added Weinberg.