Skechers U.S.A., Inc. SKX shares are trading higher premarket on Friday. On Thursday, the company recorded sales growth of 15.9% year-over-year to $2.35 billion, beating the consensus of $2.306 billion.
The company achieved 20.6% sales growth in Wholesale and 9.6% in Direct-to-Consumer, despite challenging market conditions in some regions.
Sales grew 30% in EMEA, driven by double-digit growth across all countries; 14% in the Americas, led by strong sales in the U.S. and Canada; and 7% in Asia Pacific, with double-digit gains in several countries.
Gross profit increased 14.1% to $1.223 billion. Gross margin stood at 52.1%, down 80 basis points from the prior year, impacted by lower average selling prices.
EPS of $1.26 exceeded the consensus of $1.15.
As of September 30, 2024, cash, cash equivalents, and investments totaled $1.6 billion.
In the third quarter, the company repurchased 1.4 million common shares for $90 million. As of September 30, the company had $910 million remaining under the share repurchase program.
Robert Greenberg, Chief Executive Officer of Skechers, stated, ”Earlier this quarter, Snoop Dogg and Philadelphia 76ers basketball star Joel Embiid both achieved golden moments wearing Skechers during the Paris Games. Most recently, we signed television host Howie Mandel and launched a campaign with him.”
”We are in the early stages of team sports with the global roll-out of Skechers court, football (soccer), basketball and cleated styles with a growing roster of Olympians and elite athletes competing in our footwear.”
John Vandemore, Chief Financial Officer of Skechers, added, “These results reinforce our confidence in achieving our goal of $10 billion in sales by 2026 and continued growth thereafter.”
Outlook: Skechers raised its FY24 EPS guidance from $4.08 – $4.18 to $4.20 – $4.25 versus the consensus of $4.15.
Additionally, the company boosted its FY24 sales guidance from $8.875 billion – $8.975 billion to $8.925 billion – $8.975 billion, in line with the $8.932 billion estimate.
For the fourth quarter, the company expects sales of $2.165 billion – $2.215 billion (consensus $2.217 billion) and earnings per share of $0.70 – $0.75 (consensus $0.75).
Investors can gain exposure to the stock via Managed Portfolio Series Tremblant Global ETF TOGA.
Price Action: SKX shares are up 8.23% at $66.70 premarket at the last check Friday.
Photo: Roman Zaiets via Shutterstock
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