Skechers’ top line
Skechers’ (SKX) revenues increased 10.6% YoY (year-over-year) in the second quarter, which ended on June 30. The total revenues were $1.13 billion—in line with the consensus expectations and at the middle of management’s guidance range of $1.12 billion–$1.145 billion.
“With the resurgence of retro looks and Skechers D’Lites, we are the originator of one of the hottest trends in footwear,” said Robert Greenberg, Skechers’ CEO.
“We achieved another record sales quarter and continued to see significant growth in our subsidiary and joint venture businesses, which resulted in record sales of $2.38 billion over the first six months of the year,” added David Weinberg, Skechers’ COO.
Good news and bad news
Skechers recorded strong growth in its international wholesale and global retail businesses, which grew 25% and 13% YoY, respectively, during the quarter.
The domestic wholesale business witnessed a decline of 7% during the quarter—compared to an 8.5% increase in the first quarter. The company’s international distributor business also contracted 6.1% during the quarter.
However, one of the biggest disappointments in Skechers’ second-quarter results was its same-store-sales, which fell short of the expectations. The company’s sales comps increased 4.5%—compared to analysts’ expectations of a 5.2% increase. While the US comps rose 2.2%, international comps were stronger and improved 11.3% during the quarter.
Next, we’ll discuss Skechers’ second-quarter margins and profitability.
ETF investors seeking to add exposure to Skechers could consider the Guggenheim S&P MidCap 400 Pure Growth ETF (RFG). RFG invests ~1% of its portfolio in the company.