By Sara Germano and Tess Stynes
Skechers USA Inc. profit more than doubled in the second
quarter, soaring on stronger-than-expected sales growth amid a
footwear market that is increasingly receptive of casual-wear
shoes.
The Manhattan Beach, Calif.-based company reported profit of
$79.8 million for the period ended June 30, up 129% from the
year-ago period, while revenues climbed 36% to $800 million. Shares
rose 13% to $145 in recent after-hours trading as per-share
earnings also beat analysts' estimates.
Skechers, which sells casual and fitness shoes, has continued to
report higher sales in recent quarters while the so-called
athleisure trend overtakes retail, catering to consumers who are
increasingly buying sport-styled fashions for both work and play.
Running-shoe sales are being driven for the first time shifted by
lower-priced casual models, instead of premium, high-tech training
shoes, according to SportsOneSource.
Earlier this year, Skechers surpassed Adidas AG to become the
second-place sports footwear maker by U.S. retail market share,
according to industry tracker NPD Group. The industry is
overwhelmingly led by fellow competitor Nike Inc.
David Weinberg, chief operating officer and finance chief, said
Wednesday that the latest quarter "benefited 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" stemming from stronger
demand domestically and abroad. International wholesale and
distributor sales were up 60% to $90.8 million, and the company
expects its international division to grow to 50% of the total
business in the next three to four years, Mr. Weinberg said.
Chief Executive Robert Greenberg said Skechers remains
comfortable with analysts' estimates for the second half of the
year, citing higher backlogs at the end of June, strong incoming
order rates, July sales, positive wholesale reports and plans for
additional stores.
Analysts polled by Thomson Reuters expected per-share profit of
$1.01 and revenue of $736 million.
Write to Sara Germano at sara.germano@wsj.com and Tess Stynes at
tess.stynes@wsj.com
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