Skechers Announces Record First Quarter 2021 Financial Results

Rhea-AI Summary

SKECHERS U.S.A., Inc. (NYSE:SKX) reported record financial results for Q1 2021, achieving sales of $1.43 billion, a 15.0% increase year-over-year. International wholesale sales surged 23.8%, while direct-to-consumer sales rose 18.1%. Diluted earnings per share stood at $0.63. The company's cash reserves totaled $1.51 billion. The growth is attributed to rising demand for Skechers’ comfort products amid easing pandemic restrictions and enhanced marketing efforts.

Positive

• Record sales of $1.43 billion, up 15.0% year-over-year.
• International wholesale sales increased by 23.8%.
• Direct-to-consumer sales grew 18.1%.
• Strong cash position with $1.51 billion in cash and equivalents.
• Diluted EPS of $0.63.

Negative

• Domestic wholesale sales decreased by 0.9% due to shipment timing.

SKECHERS U.S.A., Inc. (“Skechers” or the “Company”) (NYSE:SKX), a global footwear leader, today announced financial results for the first quarter ended March 31, 2021.

First Quarter Highlights

• Sales of $1.43 billion, an increase of 15.0% and quarterly record
• International Wholesale sales grew 23.8%
• Direct-to-Consumer sales grew 18.1%
• Diluted earnings per share were $0.63
• Cash, cash equivalents and investments were $1.51 billion

“Skechers new sales record in the first quarter is a remarkable achievement, especially given the lockdown measures in many key countries, including across Europe,” began Robert Greenberg, Chief Executive Officer of Skechers. “This significant growth is the result of continued demand for Skechers product as consumers desire comfort and quality in their footwear and walking remains a top COVID-19 pandemic activity. With warmer weather and increased vaccination rates around the world, traffic is improving in many of our retail stores, and our digital business continues to be a very strong growth driver. In the first quarter, we increased our marketing efforts in the United States and supported many open international markets, including the airing of new campaigns with football coach, Jon Gruden and sports analyst, Howie Long—both for Arch Fit shoes, and a Super Bowl spot with commentator, Tony Romo, for Max Cushioning footwear. In addition, we ran Brooke Burke Arch Fit and Skechers apparel commercials, and multiple campaigns, on traditional and digital platforms. As a comfort technology company, Skechers received several product awards for our sport, running and golf shoes, and we were named Company of the Year from leading industry trade publication Footwear Plus. Despite the ongoing challenges related to the pandemic, we are pleased with our exceptional start to 2021 and believe our growth is a testament to our execution and the relevance of the Skechers brand.”

“The momentum we experienced in the second half of 2020 continued into the first quarter as we achieved revenue growth of 15.0% over the same period in 2020, and an exceptional 12% increase over the first quarter of 2019. This resulted in the Company’s first quarterly sales of over $1.4 billion,” stated David Weinberg, Chief Operating Officer of Skechers. “The positive results were due to a 20.2% increase in our international business and an 8.5% increase in domestic sales compared to 2020. Driving the quarterly growth was a 23.8% increase in our International Wholesale, led by triple-digit growth in China, an 18.1% improvement in our direct-to-consumer business, with March being the strongest sales month, and a 143.0% increase in domestic e-commerce. Domestic Wholesale decreased 0.9% due to timing of shipments. Nonetheless, we saw strength across customer types and encouraging sell-through in multiple categories. The momentum in our direct-to-consumer business along with continuing demand for our comfort product, leads us to believe that Skechers’ remains on a positive trajectory.”

First Quarter 2021 Financial Results

Three Months Ended

March 31,

Change

FAQ

What were SKECHERS’ Q1 2021 earnings results?

SKECHERS reported Q1 2021 sales of $1.43 billion and diluted earnings per share of $0.63.

How did SKECHERS perform internationally in Q1 2021?

International wholesale sales grew by 23.8% in Q1 2021.

What is SKECHERS’ stock symbol?

The stock symbol for SKECHERS is SKX.

How much cash did SKECHERS have at the end of Q1 2021?

SKECHERS had cash, cash equivalents, and investments totaling $1.51 billion.

What was the growth in SKECHERS’ direct-to-consumer sales?

Direct-to-consumer sales increased by 18.1% in Q1 2021.