Skechers Announces Record Second Quarter 2021 Sales of $1.66 Billion and Diluted Earnings Per Share Of $0.88
Skechers U.S.A. (NYSE:SKX) reported record quarterly sales of $1.66 billion for Q2 2021, a 127.3% increase year-over-year, and 31.7% over Q2 2019. Domestic Wholesale sales surged 205.7%, while Direct-to-Consumer sales rose 137.8%. The company achieved a gross margin of 51.2% and diluted earnings per share of $0.88, reflecting strong demand for comfort technology products. Despite challenges from COVID-19, Skechers maintained confidence in brand strength and future growth, projecting 2021 sales between $6.15 billion and $6.25 billion.
- Record quarterly sales of $1.66 billion, up 127.3% YOY.
- Gross margin increased to 51.2%.
- Diluted earnings per share of $0.88.
- Domestic Wholesale sales grew 205.7%.
- Direct-to-Consumer sales rose 137.8%.
- Projected 2021 sales between $6.15 billion and $6.25 billion.
- SG&A expenses increased by $220.3 million, or 51.0%.
- Inventory rose to $1.06 billion, a 4.0% increase.
SKECHERS U.S.A., Inc. (“Skechers” or the “Company”) (NYSE:SKX), The Comfort Technology Company™ and a global footwear leader, today announced financial results for the second quarter ended June 30, 2021.
Second Quarter Highlights
-
Record quarterly sales of
$1.66 billion , an increase of127.3% year-over-year, and31.7% over the second quarter of 2019 -
Domestic Wholesale sales grew
205.7% -
Direct-to-Consumer sales grew
137.8% -
Record quarterly diluted earnings per share of
$0.88 -
Fully repaid
$452.5 million revolving credit facility
“Skechers second quarter financial results exceeded expectations as we achieved record quarterly sales of over
“Innovation and developing footwear technology has been a significant part of Skechers’ DNA for much of our history – from our durable occupational footwear made to last, to the lightweight cushioning and performance materials for our first generation Skechers GO RUN and Skechers GO WALK lines, to features that deliver comfort in every pair. Other features and products like our Skechers Air-Cooled Memory Foam Technology and more recently our growing recycled collection called Our Planet Matters exemplify this,” began Robert Greenberg, Chief Executive Officer of Skechers. “Our core product philosophy of comfort, style, innovation and quality at the right price has resonated with consumers during the pandemic, and as we emerge from it. Consumers are embracing a more relaxed lifestyle and want to incorporate comfort into their work and weekend wear. To communicate that Skechers is The Comfort Technology Company, we delivered new campaigns for men, women and kids that highlighted this key message. In the second quarter, our multi-platform approach included traditional television, outdoor, print and online in global markets. Our strategic approach to marketing created awareness, drove sales and resulted in our record revenues. Our intention is to continue innovating and improving our comfort technologies to deliver fresh new product in the coming seasons.”
Second Quarter 2021 Financial Results
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
||||||
|
|
June 30, |
|
|
Change |
|
|||||||||||
(in millions, except per share data) |
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
|||||
Sales |
|
$ |
1,657.8 |
|
|
$ |
729.5 |
|
|
$ |
928.3 |
|
|
|
127.3 |
|
|
Gross profit |
|
|
849.5 |
|
|
|
368.6 |
|
|
|
480.9 |
|
|
|
130.5 |
|
|
Gross margin |
|
|
51.2 |
% |
|
|
50.5 |
% |
|
|
|
|
|
|
72 |
|
bps |
SG&A expenses |
|
|
652.4 |
|
|
|
432.1 |
|
|
|
220.3 |
|
|
|
51.0 |
|
|
As a % of sales |
|
39.4 |
% |
|
|
59.2 |
% |
|
|
|
|
|
|
(1,988 |
) |
bps |
|
Earnings (loss) from operations |
|
|
201.2 |
|
|
|
(61.0 |
) |
|
|
262.2 |
|
|
|
429.8 |
|
|
Operating margin |
|
|
12.1 |
% |
|
|
(8.4 |
)% |
|
|
|
|
|
|
2,050 |
|
bps |
Net earnings (loss) |
|
|
137.4 |
|
|
|
(68.1 |
) |
|
|
205.5 |
|
|
|
301.8 |
|
|
Diluted earnings (loss) per share |
|
$ |
0.88 |
|
|
$ |
(0.44 |
) |
|
$ |
1.32 |
|
|
|
300.0 |
|
|
Second quarter sales increased
Sales grew across all segments with increases to Domestic Wholesale of
Gross margin increased 72 basis points to
SG&A increased
Earnings from operations increased
Net earnings were
In the second quarter, the Company’s effective income tax rate was
“Our record second quarter results reflect the outstanding execution of our long-term growth strategy. Led by our comfort technology products and resonant brand, we continued to expand globally and further our direct-to-consumer presence,” stated John Vandemore, Chief Financial Officer of Skechers. “The result was evident in growth across our segments and record profitability and is a testament to the prudence of the infrastructure investments we have made and are continuing to make to support our brand and our strategy. These factors coupled with the strength of our balance sheet, give us abundant confidence that Skechers remains poised to continue growing long into the future.”
Six Month 2021 Financial Results
|
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Six Months Ended |
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|
|
|
|
|
|
|
|
||||||
|
|
June 30, |
|
|
Change |
|
|||||||||||
(in millions, except per share data) |
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
|||||
Sales |
|
$ |
3,086.2 |
|
|
$ |
1,971.8 |
|
|
$ |
1,114.4 |
|
|
|
56.5 |
|
|
Gross profit |
|
|
1,529.1 |
|
|
|
916.2 |
|
|
|
612.9 |
|
|
|
66.9 |
|
|
Gross margin |
|
|
49.5 |
% |
|
|
46.5 |
% |
|
|
|
|
|
|
308 |
|
bps |
SG&A expenses |
|
|
1,180.4 |
|
|
|
940.2 |
|
|
|
240.2 |
|
|
|
25.5 |
|
|
As a % of sales |
|
|
38.2 |
% |
|
|
47.7 |
% |
|
|
|
|
|
|
(943 |
) |
bps |
Earnings (loss) from operations |
|
|
358.9 |
|
|
|
(16.2 |
) |
|
|
375.1 |
|
|
|
2,315.4 |
|
|
Operating margin |
|
|
11.6 |
% |
|
|
(0.8 |
)% |
|
|
|
|
|
|
1,245 |
|
bps |
Net earnings (loss) |
|
|
235.9 |
|
|
|
(19.0 |
) |
|
|
254.9 |
|
|
|
1,341.6 |
|
|
Diluted earnings (loss) per share |
|
$ |
1.51 |
|
|
$ |
(0.12 |
) |
|
$ |
1.63 |
|
|
|
1,358.3 |
|
|
Year to date sales increased
Sales grew across all segments with increases to Domestic Wholesale of
Gross margin increased 308 basis points to
SG&A increased by
Earnings from operations were
Net earnings were
The Company’s effective income tax rate was
Balance Sheet
Cash, cash equivalents and investments totaled
Total inventory was
Outlook
For the fiscal year 2021, the Company believes it will achieve sales between
Store Count
|
|
Number of Store Locations as of |
|
|
|
|
|
|
|
|
|
Number of Store Locations as of |
|
|||
|
|
December 31, 2020 |
|
|
Opened |
|
|
Closed(1) |
|
June 30, 2021 |
|
|||||
Domestic stores |
|
|
523 |
|
|
|
12 |
|
|
|
(23 |
) |
|
|
512 |
|
International stores |
|
|
331 |
|
|
|
13 |
|
|
|
(5 |
) |
|
|
339 |
|
Joint venture stores |
|
|
467 |
|
|
|
67 |
|
|
|
(52 |
) |
|
|
482 |
|
Distributor, licensee and franchise stores |
|
|
2,570 |
|
|
|
260 |
|
|
|
(106 |
) |
|
|
2,724 |
|
Total Skechers stores |
|
|
3,891 |
|
|
|
352 |
|
|
|
(186 |
) |
|
|
4,057 |
|
(1) Does not reflect temporary closures due to the COVID-19 pandemic. |
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Certain Non-GAAP Measures
To supplement our unaudited condensed consolidated financial statements presented under generally accepted accounting principles in the United States (“GAAP”), we use the non-GAAP financial measures presented to evaluate our results of operations, financial condition, liquidity and indebtedness. We believe that these non-GAAP measures provide useful information to investors regarding financial and business trends related to our results of operations, cash flows and indebtedness and that when this non-GAAP financial information is viewed with our GAAP financial information, investors are provided with valuable supplemental information regarding our results of operations, thereby facilitating period-to-period comparisons of our business performance consistent with how management evaluates the Company’s operating performance and liquidity. In addition, these non-GAAP measures address questions the Company routinely receives from analysts and investors and, in order to assure that all investors have access to similar data the Company has determined that it is appropriate to make this data available to all investors. None of the non-GAAP measures presented should be considered as an alternative to net income or loss, operating income, cash flows from operating activities, total indebtedness or any other measures of operating performance and financial condition, liquidity or indebtedness derived in accordance with GAAP. These non-GAAP measures have important limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under GAAP. Our use of these terms may vary from the use of similarly-titled measures by others in our industry due to the potential inconsistencies in the method of calculation and differences due to items subject to interpretation. Reconciliations of these non-GAAP financial measures to the most nearly comparable GAAP financial measures are presented below.
Second Quarter 2021 Conference Call
The Company will host a conference call today at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time to discuss its second quarter 2021 financial results. The call can be accessed on the Investor Relations section of the Company’s website at investors.skechers.com. For those unable to participate during the live broadcast, a replay will be available beginning July 22, 2021 at 7:30 p.m. ET, through August 5, 2021, at 11:59 p.m. ET. To access the replay, dial 844-512-2921 (U.S.) or 412-317-6671 (International) and use passcode: 13721146.
About SKECHERS U.S.A., Inc.
Skechers, The Comfort Technology Company based in Southern California, designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. The Company’s collections are available in the United States and over 170 countries and territories via department and specialty stores, and direct to consumers through 4,057 Company and third-party-owned retail stores and e-commerce websites. The Company manages its international business through a network of global distributors, joint venture partners in Asia, Israel and Mexico, and wholly-owned subsidiaries in Canada, Japan, India, Europe and Latin America. For more information, please visit about.skechers.com and follow us on Facebook, Instagram, Twitter, and TikTok.
Reference in this press release to “Sales” refers to Skechers’ net sales reported under GAAP. This announcement contains forward-looking statements that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include, without limitation, Skechers’ future domestic and international growth, financial results and operations including expected net sales and earnings, its development of new products, future demand for its products, its planned domestic and international expansion, opening of new stores and additional expenditures, and advertising and marketing initiatives. Forward-looking statements can be identified by the use of forward-looking language such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” “project,” “will be,” “will continue,” “will result,” “could,” “may,” “might,” or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements. Factors that might cause or contribute to such differences include the disruption of business and operations due to the COVID-19 pandemic; international economic, political and market conditions including the challenging consumer retail markets in the United States; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers; decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers, especially in the highly competitive performance footwear market; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in Skechers’ annual report on Form 10-K for the year ended December 31, 2020 and its quarterly report on Form 10-Q for the three months ended March 31, 2021. More specifically, the COVID-19 pandemic has had and may continue to have a significant impact on Skechers’ business, financial conditions, cash flow and results of operations. Forward-looking statements with respect to the COVID-19 pandemic include, without limitation, Skechers’ plans in response to this pandemic. At this time, there is significant uncertainty about the COVID-19 pandemic, including without limitation, (i) the duration and extent of the impact of the pandemic, (ii) governmental responses to the pandemic, including how such responses could impact Skechers’ business and operations, as well as the operations of its factories and other business partners, (iii) the effectiveness of Skechers’ actions taken in response to these risks, and (iv) Skechers’ ability to effectively and timely adjust its plans in response to the rapidly changing retail and economic environment. Taking these and other risk factors associated with the COVID-19 pandemic into consideration, the dynamic nature of these circumstances means that what is stated in this press release could change at any time, and as a result, actual results could differ materially from those contemplated by such forward-looking statements. The risks included here are not exhaustive. Skechers operates in a very competitive and rapidly changing environment. New risks emerge from time to time and we cannot predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. Moreover, reported results should not be considered an indication of future performance.
SKECHERS U.S.A., INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||||
|
|
As of June 30, |
|
|
As of December 31, |
|
||
(in thousands) |
|
2021 |
|
|
2020 |
|
||
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,091,355 |
|
|
$ |
1,370,826 |
|
Short-term investments |
|
|
107,626 |
|
|
|
100,767 |
|
Trade accounts receivable, net |
|
|
778,216 |
|
|
|
619,800 |
|
Other receivables |
|
|
66,298 |
|
|
|
69,222 |
|
Total receivables |
|
|
844,514 |
|
|
|
689,022 |
|
Inventory |
|
|
1,057,284 |
|
|
|
1,016,774 |
|
Prepaid expenses and other current assets |
|
|
145,256 |
|
|
|
166,962 |
|
Total current assets |
|
|
3,246,035 |
|
|
|
3,344,351 |
|
Property, plant and equipment, net |
|
|
1,026,777 |
|
|
|
935,441 |
|
Operating lease right-of-use assets |
|
|
1,134,145 |
|
|
|
1,171,521 |
|
Deferred tax assets |
|
|
61,276 |
|
|
|
63,884 |
|
Long-term investments |
|
|
122,542 |
|
|
|
108,412 |
|
Goodwill |
|
|
93,497 |
|
|
|
93,497 |
|
Other assets, net |
|
|
80,459 |
|
|
|
95,263 |
|
Total non-current assets |
|
|
2,518,696 |
|
|
|
2,468,018 |
|
TOTAL ASSETS |
|
$ |
5,764,731 |
|
|
$ |
5,812,369 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
831,910 |
|
|
$ |
744,077 |
|
Operating lease liabilities |
|
|
214,271 |
|
|
|
204,370 |
|
Accrued expenses |
|
|
248,996 |
|
|
|
208,712 |
|
Current installments of long-term borrowings |
|
|
42,547 |
|
|
|
52,250 |
|
Short-term borrowings |
|
|
575 |
|
|
|
3,297 |
|
Total current liabilities |
|
|
1,338,299 |
|
|
|
1,212,706 |
|
Long-term borrowings, excluding current installments |
|
|
268,913 |
|
|
|
679,415 |
|
Long-term operating lease liabilities |
|
|
1,015,754 |
|
|
|
1,065,069 |
|
Deferred tax liabilities |
|
|
10,421 |
|
|
|
11,439 |
|
Other long-term liabilities |
|
|
117,240 |
|
|
|
118,077 |
|
Total non-current liabilities |
|
|
1,412,328 |
|
|
|
1,874,000 |
|
Total liabilities |
|
|
2,750,627 |
|
|
|
3,086,706 |
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
Preferred Stock |
|
|
— |
|
|
|
— |
|
Class A Common Stock |
|
|
135 |
|
|
|
134 |
|
Class B Common Stock |
|
|
21 |
|
|
|
21 |
|
Additional paid-in capital |
|
|
395,951 |
|
|
|
372,165 |
|
Accumulated other comprehensive loss |
|
|
(34,990 |
) |
|
|
(27,285 |
) |
Retained earnings |
|
|
2,372,342 |
|
|
|
2,136,400 |
|
Skechers U.S.A., Inc. equity |
|
|
2,733,459 |
|
|
|
2,481,435 |
|
Noncontrolling interests |
|
|
280,645 |
|
|
|
244,228 |
|
Total stockholders' equity |
|
|
3,014,104 |
|
|
|
2,725,663 |
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
5,764,731 |
|
|
$ |
5,812,369 |
|
SKECHERS U.S.A., INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
(in thousands, except per share data) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
Sales |
|
$ |
1,657,773 |
|
|
$ |
729,472 |
|
|
$ |
3,086,191 |
|
|
$ |
1,971,817 |
|
Cost of sales |
|
|
808,280 |
|
|
|
360,906 |
|
|
|
1,557,075 |
|
|
|
1,055,583 |
|
Gross profit |
|
|
849,493 |
|
|
|
368,566 |
|
|
|
1,529,116 |
|
|
|
916,234 |
|
Royalty income |
|
|
4,098 |
|
|
|
2,596 |
|
|
|
10,135 |
|
|
|
7,844 |
|
|
|
|
853,591 |
|
|
|
371,162 |
|
|
|
1,539,251 |
|
|
|
924,078 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling |
|
|
132,448 |
|
|
|
60,240 |
|
|
|
217,744 |
|
|
|
134,295 |
|
General and administrative |
|
|
519,934 |
|
|
|
371,893 |
|
|
|
962,629 |
|
|
|
805,944 |
|
Selling, general and administrative |
|
|
652,382 |
|
|
|
432,133 |
|
|
|
1,180,373 |
|
|
|
940,239 |
|
Earnings (loss) from operations |
|
|
201,209 |
|
|
|
(60,971 |
) |
|
|
358,878 |
|
|
|
(16,161 |
) |
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income |
|
|
909 |
|
|
|
1,547 |
|
|
|
1,704 |
|
|
|
3,854 |
|
Interest expense |
|
|
(3,417 |
) |
|
|
(4,804 |
) |
|
|
(7,530 |
) |
|
|
(6,785 |
) |
Other, net |
|
|
4,666 |
|
|
|
4,704 |
|
|
|
(6,190 |
) |
|
|
8,157 |
|
Total other income (expense) |
|
|
2,158 |
|
|
|
1,447 |
|
|
|
(12,016 |
) |
|
|
5,226 |
|
Earnings (loss) before income taxes |
|
|
203,367 |
|
|
|
(59,524 |
) |
|
|
346,862 |
|
|
|
(10,935 |
) |
Income tax expense (benefit) |
|
|
41,544 |
|
|
|
(4,307 |
) |
|
|
70,530 |
|
|
|
3,122 |
|
Net earnings (loss) |
|
|
161,823 |
|
|
|
(55,217 |
) |
|
|
276,332 |
|
|
|
(14,057 |
) |
Less: Net earnings attributable to noncontrolling interest |
|
|
24,454 |
|
|
|
12,880 |
|
|
|
40,390 |
|
|
|
4,939 |
|
Net earnings (loss) attributable to Skechers U.S.A. Inc. |
|
$ |
137,369 |
|
|
$ |
(68,097 |
) |
|
$ |
235,942 |
|
|
$ |
(18,996 |
) |
Net earnings (loss) per share attributable to Skechers U.S.A. Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.88 |
|
|
$ |
(0.44 |
) |
|
$ |
1.52 |
|
|
$ |
(0.12 |
) |
Diluted |
|
$ |
0.88 |
|
|
$ |
(0.44 |
) |
|
$ |
1.51 |
|
|
$ |
(0.12 |
) |
Weighted-average shares used in calculating net earnings (loss) per share attributable to Skechers U.S.A. Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
155,561 |
|
|
|
154,138 |
|
|
|
155,196 |
|
|
|
153,849 |
|
Diluted |
|
|
156,674 |
|
|
|
154,138 |
|
|
|
156,321 |
|
|
|
153,849 |
|
SKECHERS U.S.A., INC. AND SUBSIDIARIES SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited) |
|||||||||||||||||
|
|
Three Months Ended June 30, |
|
|
Change |
|
|||||||||||
(in millions) |
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
|||||
Domestic Wholesale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
399.7 |
|
|
$ |
130.7 |
|
|
|
269.0 |
|
|
|
205.7 |
|
|
Gross margin |
|
|
38.8 |
% |
|
|
38.6 |
% |
|
|
|
|
|
|
26 |
|
bps |
International Wholesale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
750.2 |
|
|
$ |
385.2 |
|
|
|
365.0 |
|
|
|
94.8 |
|
|
Gross margin |
|
|
46.5 |
% |
|
|
46.8 |
% |
|
|
|
|
|
|
(32 |
) |
bps |
Direct-to-Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
507.9 |
|
|
$ |
213.6 |
|
|
|
294.3 |
|
|
|
137.8 |
|
|
Gross margin |
|
|
68.0 |
% |
|
|
64.5 |
% |
|
|
|
|
|
|
350 |
|
bps |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
1,657.8 |
|
|
$ |
729.5 |
|
|
|
928.3 |
|
|
|
127.3 |
|
|
Gross margin |
|
|
51.2 |
% |
|
|
50.5 |
% |
|
|
|
|
|
|
72 |
|
bps |
|
|
Six Months Ended June 30, |
|
|
Change |
|
|||||||||||
(in millions) |
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
|||||
Domestic Wholesale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
774.3 |
|
|
$ |
508.7 |
|
|
|
265.6 |
|
|
|
52.2 |
|
|
Gross margin |
|
|
38.1 |
% |
|
|
38.5 |
% |
|
|
|
|
|
|
(36 |
) |
bps |
International Wholesale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
1,462.4 |
|
|
$ |
960.4 |
|
|
|
502.0 |
|
|
|
52.3 |
|
|
Gross margin |
|
|
45.8 |
% |
|
|
43.8 |
% |
|
|
|
|
|
|
198 |
|
bps |
Direct-to-Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
849.5 |
|
|
$ |
502.7 |
|
|
|
346.8 |
|
|
|
69.0 |
|
|
Gross margin |
|
|
66.4 |
% |
|
|
59.6 |
% |
|
|
|
|
|
|
682 |
|
bps |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
3,086.2 |
|
|
$ |
1,971.8 |
|
|
|
1,114.4 |
|
|
|
56.5 |
|
|
Gross margin |
|
|
49.5 |
% |
|
|
46.5 |
% |
|
|
|
|
|
|
308 |
|
bps |
SKECHERS U.S.A., INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES (Unaudited)
Adjusted Earnings and Adjusted Diluted Earnings Per Share
We believe that Adjusted Earnings and Adjusted Diluted Earnings Per Share provide meaningful supplemental information to investors in evaluating our business performance for the three and six months ended June 30, 2021. Adjusted Earnings and Adjusted Diluted Earnings Per Share are not measures of financial performance under GAAP and should be considered in addition to, and not a substitute for, Net Earnings and Diluted Net Earnings Per Share which are the most comparable GAAP measures. Our method of determining non-GAAP financial measures may differ from other companies’ methods and therefore may not be comparable to those used by other companies.
Constant Currency Adjustment
We evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of period-over-period fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our results of operations, thereby facilitating period-to-period comparisons of our business performance and is consistent with how management evaluates the Company’s performance. We calculate constant currency percentages by converting our current period local currency financial results using the prior-period exchange rates and comparing these adjusted amounts to our prior period reported results.
|
|
Three Months Ended June 30, |
||||||||||||||||||||||
|
|
2021 |
|
2020 |
|
Change |
||||||||||||||||||
(in millions, except per share data) |
|
Reported GAAP Measure |
|
Constant Currency Adjustment |
|
Adjusted for Non-GAAP Measures |
|
Reported GAAP Measure |
|
$ |
|
% |
||||||||||||
Sales |
|
$ |
1,657.8 |
|
|
$ |
(71.3 |
) |
|
$ |
1,586.5 |
|
|
$ |
729.5 |
|
|
|
857.0 |
|
|
|
117.5 |
|
Cost of sales |
|
|
808.3 |
|
|
|
(37.7 |
) |
|
|
770.6 |
|
|
|
360.9 |
|
|
|
409.7 |
|
|
|
113.5 |
|
Gross profit |
|
$ |
849.5 |
|
|
$ |
(33.6 |
) |
|
$ |
815.9 |
|
|
$ |
368.6 |
|
|
|
447.3 |
|
|
|
121.4 |
|
Royalty income |
|
|
4.1 |
|
|
|
(0.4 |
) |
|
|
3.7 |
|
|
|
2.6 |
|
|
|
1.1 |
|
|
|
42.3 |
|
SG&A expenses |
|
|
652.4 |
|
|
|
(22.2 |
) |
|
|
630.2 |
|
|
|
432.1 |
|
|
|
198.1 |
|
|
|
45.8 |
|
Earnings (loss) from operations |
|
$ |
201.2 |
|
|
$ |
(11.8 |
) |
|
$ |
189.4 |
|
|
$ |
(60.9 |
) |
|
|
250.3 |
|
|
|
411.0 |
|
Other income (expense) |
|
|
2.2 |
|
|
|
(4.8 |
) |
|
|
(2.6 |
) |
|
|
1.4 |
|
|
|
(4.0 |
) |
|
|
(285.7 |
) |
Income tax (benefit) expense |
|
|
41.5 |
|
|
|
(1.5 |
) |
|
|
40.0 |
|
|
|
(4.3 |
) |
|
|
44.3 |
|
|
|
1,030.2 |
|
Less: Noncontrolling interests |
|
|
24.5 |
|
|
|
(2.4 |
) |
|
|
22.1 |
|
|
|
12.9 |
|
|
|
9.2 |
|
|
|
71.3 |
|
Net earnings (loss) |
|
$ |
137.4 |
|
|
$ |
(12.7 |
) |
|
$ |
124.7 |
|
|
$ |
(68.1 |
) |
|
|
192.8 |
|
|
|
283.1 |
|
Diluted earnings (loss) per share |
|
$ |
0.88 |
|
|
$ |
(0.08 |
) |
|
$ |
0.80 |
|
|
$ |
(0.44 |
) |
|
|
1.24 |
|
|
|
281.8 |
|
|
|
Six Months Ended June 30, |
||||||||||||||||||||||
|
|
2021 |
|
2020 |
|
Change |
||||||||||||||||||
(in millions, except per share data) |
|
Reported GAAP Measure |
|
Constant Currency Adjustment |
|
Adjusted for Non-GAAP Measures |
|
Reported GAAP Measure |
|
$ |
|
% |
||||||||||||
Sales |
|
$ |
3,086.2 |
|
|
$ |
(111.6 |
) |
|
$ |
2,974.6 |
|
|
$ |
1,971.8 |
|
|
|
1,002.8 |
|
|
|
50.9 |
|
Cost of sales |
|
|
1,557.1 |
|
|
|
(61.9 |
) |
|
|
1,495.2 |
|
|
|
1,055.6 |
|
|
|
439.6 |
|
|
|
41.6 |
|
Gross profit |
|
$ |
1,529.1 |
|
|
$ |
(49.7 |
) |
|
$ |
1,479.4 |
|
|
$ |
916.2 |
|
|
|
563.2 |
|
|
|
61.5 |
|
Royalty income |
|
|
10.2 |
|
|
|
(0.9 |
) |
|
|
9.3 |
|
|
|
7.8 |
|
|
|
1.5 |
|
|
|
19.2 |
|
SG&A expenses |
|
|
1,180.4 |
|
|
|
(33.5 |
) |
|
|
1,146.9 |
|
|
|
940.2 |
|
|
|
206.7 |
|
|
|
22.0 |
|
Earnings (loss) from operations |
|
$ |
358.9 |
|
|
$ |
(17.1 |
) |
|
$ |
341.8 |
|
|
$ |
(16.2 |
) |
|
|
358.0 |
|
|
|
2,209.9 |
|
Other income (expense) |
|
|
(12.1 |
) |
|
|
5.8 |
|
|
|
(6.3 |
) |
|
|
5.2 |
|
|
|
(11.5 |
) |
|
|
(221.2 |
) |
Income tax expense |
|
|
70.5 |
|
|
|
(2.5 |
) |
|
|
68.0 |
|
|
|
3.1 |
|
|
|
64.9 |
|
|
|
2,093.5 |
|
Less: Noncontrolling interests |
|
|
40.4 |
|
|
|
(3.5 |
) |
|
|
36.9 |
|
|
|
4.9 |
|
|
|
32.0 |
|
|
|
653.1 |
|
Net earnings (loss) |
|
$ |
235.9 |
|
|
$ |
(5.3 |
) |
|
$ |
230.6 |
|
|
$ |
(19.0 |
) |
|
|
249.6 |
|
|
|
1,313.7 |
|
Diluted earnings (loss) per share |
|
$ |
1.51 |
|
|
$ |
(0.03 |
) |
|
$ |
1.48 |
|
|
$ |
(0.12 |
) |
|
|
1.60 |
|
|
|
1,333.3 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210722005930/en/
FAQ
What were Skechers' Q2 2021 earnings results?
How much did Skechers' sales increase compared to last year?
What is Skechers' sales projection for the fiscal year 2021?
How did Skechers' gross margin perform in Q2 2021?
What challenges did Skechers face during the second quarter?
