Skechers USA (SKX) Tops Q1 EPS by 9c; Guides Q2 Revs Below the Street

Skechers USA (NYSE: SKX) reported Q1 EPS of $0.63, $0.09 better than the analyst estimate of $0.54. Revenue for the quarter came in at $978.8 million versus the consensus estimate of $917.25 million.

GUIDANCE:

Skechers USA sees Q2 2016 revenue of $875-900 million, versus the consensus of $913.55 million.

“At no other time in the Company’s history have we been stronger across our many product categories, marketing initiatives and multiple distribution channels. The growing demand for our brand has resulted in record revenues of $978.8 million and earnings from operations of $138.6 million for the first quarter of 2016,” began David Weinberg, chief operating officer and chief financial officer. “These significant achievements are primarily the result of a 47.1 percent increase in our international wholesale business over the first quarter 2015, and a shift forward of some domestic and international orders into the first quarter due to the Easter timing. In addition, domestic wholesale sales increased 12.1 percent and our Company-owned retail sales increased by 23.2 percent with a 9.8 percent comp store sales increase over the prior year period. For the first time ever, our international business has grown to be our largest segment—with international wholesale representing 42.9 percent and international wholesale and retail representing 47.7 percent of our total sales. To meet the increased demand, we are investing in our infrastructure, including improved efficiencies in our European Distribution Center, which allowed us to achieve a record three million pairs shipped in a month during February. With the completion of our European Distribution Center expansion to one million square feet in the second quarter of 2016, and with the automation to be fully completed later this year, we expect to be even more efficient in our largest market outside of the United States.”

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

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