Leading footwear and The Comfort Technology company Skechers announced $1 billion share buyback and a new sales record of $2.16 billion in the second quarter, attributed to high demand for their range of comfortable and innovative footwear.
David Weinberg, Skechers’ Chief Operating Officer, highlighted that the growth stemmed from increases of 9% in Direct-to-Consumer sales, 6% in Wholesale, 7% internationally, and 8% domestically. Growth was seen across all regions, with notable increases in the Americas (7%), Europe, the Middle East, and Africa (14%), and Asia Pacific (2%). Particularly strong performances were noted in international direct-to-consumer and domestic wholesale segments, which saw respective growth rates of 15% and 14%. Despite challenges like foreign currency fluctuations, subdued market conditions in China, and supply chain disruptions from the Suez Canal crisis, the company remains optimistic due to robust demand reflected in second-half orders. This positive outlook has led to an upward revision of the full-year sales and earnings forecast. Looking ahead, Skechers aims to focus on bolstering global infrastructure, optimizing inventory levels, and enhancing operational efficiencies to drive profitable growth.
Robert Greenberg, the CEO of Skechers, marked the 25th anniversary of the company’s IPO by celebrating record second-quarter sales and reinforcing its position as the third-largest athletic footwear brand globally. Greenberg commended the achievements of the entire organization and expressed gratitude for strong customer partnerships and collaborations with notable figures like Joel Embiid and brands such as John Deere. The Team Skechers roster includes a diverse group of athletes like Harry Kane, Joel Embiid, Matt Fitzpatrick, Brooke Henderson, Diego Garcia, Andy Benesh, and Miles Partain, alongside celebrities like Martha Stewart and Snoop Dogg, who collectively enhance brand visibility and consumer interest. The company has launched various marketing campaigns featuring these ambassadors and plans to introduce new product lines like football footwear, Skechers x John Deere, and basketball footwear on a global scale. Skechers remains dedicated to delivering comfortable footwear and apparel across demographics, supported by targeted marketing efforts and expanding retail presence worldwide.
In terms of financials, Skechers reported total cash, cash equivalents, and investments of $1.55 billion, reflecting an 11.6% increase from December 31, 2023. Inventory stood at $1.51 billion, showing a slight decrease from the previous year-end. During the second quarter, the company repurchased 0.9 million shares of its Class A common stock at a cost of $60.0 million.
Additionally, the Board of Directors approved a new share repurchase program allowing the repurchase of Class A common stock worth up to $1.0 billion until July 25, 2027, replacing the previous program initiated in 2022.
Looking ahead, Skechers anticipates sales ranging between $2.30 and $2.35 billion with diluted earnings per share of $1.10 to $1.15 for the third quarter of 2024. For the fiscal year 2024, the company projects sales in the range of $8.875 to $8.975 billion and diluted earnings per share between $4.08 and $4.18.