Skechers USA (SKX) Tops Q1 EPS by 17c

April 22, 2021 4:08 PM EDT

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Skechers USA (NYSE: SKX) reported Q1 EPS of $0.63, $0.17 better than the analyst estimate of $0.46. Revenue for the quarter came in at $1.43 billion versus the consensus estimate of $1.34 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.”

GUIDANCE:

Skechers USA sees Q2 2021 EPS of $0.40-$0.50, versus the consensus of $0.30. Skechers USA sees Q2 2021 revenue of $1.45-1.5 billion, versus the consensus of $1.24 billion.

Skechers USA sees FY2021 EPS of $1.80-$2.00, versus the consensus of $1.92. Skechers USA sees FY2021 revenue of $5.8-5.9 billion, versus the consensus of $5.57 billion.

For earnings history and earnings-related data on Skechers USA (SKX) click here.



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