- Prachi Singh
Sales at Skechers USA Inc., decreased 3.9 percent as a result of a 4.1 percent decrease in the company’s international business and a 3.7 percent decrease in its domestic business. The company said in a statement that gross margins remained relatively flat at 48.1 percent, earnings from operations decreased 55.3 million dollars or 37.5 percent to 92.1 million dollars. Net earnings were 64.3 million dollars and diluted earnings per share were 41 cents, while adjusted net earnings were 82.6 million dollars and adjusted diluted earnings per share were 53 cents.
“As we continued to navigate through the global pandemic in the third quarter, we capitalized on our core strengths of comfort, style, innovation and quality at a reasonable price,” said Robert Greenberg, chief executive officer of Skechers
Review of Skechers’ Q3 and nine-months results
The company added that third quarter declines in the international business were driven by lower distributor and retail sales, partially offset by increases in its joint venture and subsidiary sales, including growth of 23.9 percent in China and 18.1 percent in Europe. Declines in the company’s domestic business were driven by lower retail sales, partially offset by growth of 172.1 percent in ecommerce sales and growth in its domestic wholesale business.
The company’s domestic wholesale sales increased 6.3 percent, international wholesale sales decreased 0.5 percent and its direct-to-consumer business decreased 16.9 percent. Direct-to-consumer comparable same store sales decreased 22.1 percent, including decreases of 20.4 percent domestically and 26.1 percent internationally.
For the first nine months, the company’s sales decreased 15.9 percent, reflecting the impact of the global pandemic on its businesses worldwide, gross margins decreased 60 basis points to 47.1 percent, earnings from operations decreased 348.4 million dollars or 82.1 percent to 76 million dollars, while net earnings were 45.3 million dollars and diluted earnings per share were 29 cents. Adjusted net earnings were 63.6 million dollars and adjusted diluted earnings per share were 41 cents.