Sketcher’s Becomes Street Fashionable as Q3 EPS Shapes Up By 36% From Last Year
The shoemaker of the “Shape Up” and other comfort-centric footwear Sketchers (SKX), has announced its Q3 financial report and cited EPS of $1.26 vs FactSet $1.16, a 36% increase from last year. Skechers reported record Q3 financial results, with sales of $2.35Bn, an increase of 16% or $323M. The company saw significant growth in both its wholesale and direct-to-consumer segments, with 21% growth in wholesale and 9.6% growth in direct-to-consumer. Sales growth was balanced, with 16% growth internationally and 15% growth domestically. The company attributed the strong results to the widespread acceptance of its diverse product portfolio and the success of its Comfort Technology products. However, the company faced challenges in China, where sales declined 5.7% year-over-year, due to macroeconomic pressures and their impact on consumer spending. However, India saw an impressive rebound in the quarter with 24% growth, as the company continues to work closely with the local team and regulators to advance its local sourcing strategy.
For the full year 2024, Skechers expects sales in the range of $8.925Bn to $8.975Bn and EPS in the range of $4.20 to $4.25, representing annual growth of 12% and 21% respectively at the midpoint. This implies Q4 sales in the range of $2.165Bn to $2.215Bn and EPS of $0.70 to $0.75. Capex is anticipated to be between $375M and $400M for the year. The company remains committed to achieving $10Bn in sales by 2026 and delivering sustainable, long-term and profitable growth.
Sketchers Executive Vice President David Weinberg stated, “As the Comfort Technology Company with innovations that includes Skechers Hands Free Slip-ins, Skechers Arch Fit, Skechers Air-Cooled Memory Foam, Hyper Burst, fitness and many more technologies, we are focused on designing products that consumers both want and need at a reasonable price and delivering it through their preferred distribution channels. Our consumer centric philosophy and innovative and comfort driven mindset across our diverse product portfolio is what differentiates us and is what drives us to excel and results in record breaking sales.”
