Skechers’ second-quarter per-share earnings more than doubled, and the maker of casual walking shoes said Wednesday that it expects to continue growing at a fast pace, with international sales becoming half of its business in several years.
Per-share earnings skyrocketed 128% to $1.55 a share, and revenue climbed 36% to $800.5 million. Analysts had expected profit of $1.01 a share on revenue of $736.4 million.
“We believe that our accelerated growth trend will remain through 2015 and into 2016,” said Skechers (NYSE:SKX) CEO Robert Greenberg in a statement.
Skechers stock has more than doubled since the start of the year. Pictured is the outside of a Skechers stores in San Francisco. AP View Enlarged Image
Shares jumped 9% in late trading. Skechers stock has more than doubled since the start of the year, reaching a new all-time high of 129.06 during the regular session Wednesday.
International sales presently account for 30% of sales. In a conference call, Skechers COO and CFO David Weinberg said he sees the biggest growth abroad coming from China. Margins in the country widened in Q2.
Management also said that it remains “comfortable” with current consensus views for the latter half of the year. Analysts expect EPS of $1.56, on revenue of $867.2 million in Q3, and EPS of 64 cents on $690.2 million in revenue for Q4.
The company attributed Q2 growth to strength in domestic wholesale, international wholesale and company-owned retail stores. Total same-store sales grew 12.9%, as Skechers’ domestic wholesale channel hiked average prices by 9%.
Meghan Trainor, Ringo Deals
“Furthermore, the second quarter benefitted from both pent up demand resulting from U.S. port issues in the first quarter as well as a shift in back-to-school shipments due to increased demand in both domestic and international markets,” Weinberg said.
The shoemaker’s international subsidiary business weathered the strong dollar as it experienced double-digit growth during the quarter.
Continuing a long line of celebrity endorsements, the footwear company said last week that it had signed pop singer Meghan Trainor as its next spokesperson. Skechers is targeting 12-24 year olds with its ads featuring former Disney(NYSE:DIS) Channel star Demi Lovato as well as older generations via endorsement deals with Ringo Starr, Pete Rose and Sugar Ray Leonard.
Walking Shoe Trend
It is also courting a male audience with its “Star Wars”-themed shoes for boys and men, which be will advertised in Q4 and released later in the year.
Skechers’ walking shoes are hugely popular, riding the casual activewear fashion trend and costing a fraction of high-end performance footwear.
Skechers trails only activewear behemoth Nike (NYSE:NKE) in the athletic footwear market, though Nike continues to dominate.
According to an NPD Group study released Wednesday, Nike and its Jordan brand nabbed a 58% dollar share of the U.S. athletic footwear market in the first six months of the year. Skechers and New Balance followed, each holding onto 5% brand share.
Overall sales of athletic shoes rose 8% through June of 2015, compared to the first half of 2014, with the walking category “growing in the double digits” among men and women, said the research firm. Under Armour (NYSE:UA) remains second by sales in the overall U.S. sportswear market.
[“source – news.investors.com”]