Skechers stock soars 7% after earnings crush estimates and company offers upbeat guidance

MW Skechers stock soars 7% after earnings crush estimates and company offers upbeat guidance

By Ciara Linnane

Athletic footwear company generates record sales in its latest quarter

Skechers Inc.'s stock soared 7% in after-hours trade Thursday, after the athletic footwear company swept past earnings estimates for the first quarter.

Skechers $(SKX)$ had net income of $206.6 million, or $1.33 a share, for the quarter, up from $160.4 million, or $1.02 a share, in the year-earlier period.

Sales rose 12.5% to a quarterly record of $2.252 billion. The FactSet consensus was for EPS of $1.10 and sales of $2.203 billion.

Gross margin rose 360 basis points to 52.5% from 48.9% a year ago.

"We saw growth of 17% in our direct-to-consumer segment and 10% in wholesale, as well as increases of 15% internationally and 8% domestically," Chief Operating Officer David Weinberg said in prepared remarks.

International sales accounted for 65% of the total, with Europe and EMEA sales up 17%, Asia Pacific up 16% and the Americas up 8%.

For the second quarter, Skechers is expecting sales to range from $2.175 billion to $2.225 billion. It expects EPS of 85 cents to 90 cents.

The FactSet consensus is for EPS of $1.08 on sales of $2.203 billion.

For the full year, the company is expecting sales of $8.725 billion to $8.875 billion and EPS of $$3.95 to $4.10. The FactSet consensus is for EPS of $3.90 and sales of $8.781 billion.

The stock has fallen 5.7% in the year to date, while the S&P 500 SPX has gained 6%.

-Ciara Linnane

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April 25, 2024 16:44 ET (20:44 GMT)

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