Skechers announces strong Q3 results
Global footwear company Skechers has announced third-quarter revenue was stronger-than-anticipated.
Sales reached $1.3 billion, a 3.9% decrease year-over-year, but a large increase of 78.3% compared to Q2 of 2020. The decline reflects a 4.1% decrease in its international business, partially offset by growth of 23.9% in China and 18.1% in Europe.
Net income was $64.3 million, with adjusted net earnings sitting at $82.6 million. Domestic wholesale business grew 6.3% year-over-year
Cash, cash equivalents and investments were $1.50 billion at the end of Q3.
Robert Greenberg, Chief Executive Officer of Skechers, said: “We continue to drive sales and support our retail partners through marketing efforts that drive product awareness and inspire consumers to shop online and in stores. In the third quarter, this included the launch of our commercial featuring Dodgers ace pitcher and world champion Clayton Kershaw.
"Though the pandemic is still impacting economies around the world, we are confident in our product offering and our team’s ability to drive sales around the world.”
David Weinberg, Chief Operating Officer of Skechers, commented: "We opened 24 Company-owned stores planned prior to COVID—including flagship locations on Rue de Rivoli in Paris, Oxford Circus in London, Shinjuku in Tokyo, and two stores in Colombia, bringing our store count to 3,770. To fuel future growth in our business, we continue to invest in our infrastructure, expanding our distribution centres in Europe and North America, opening a new logistic centre in the United Kingdom, and nearing completion of our distribution centre in China.
"Despite this difficult year, we believe our focus on building our digital initiatives and supply chain while delivering comfortable footwear globally, will result in an even stronger brand as the world continues to normalise.”