Skechers Q2 Earnings Miss Estimates, Sales Rise Y/Y
Skechers U.S.A., Inc. (NYSE: SKX) delivered second-quarter 2024 results, with the top and bottom lines lagging the Zacks Consensus Estimate. Sales improved but earnings declined year over year. Challenges such as supply-chain disruptions, foreign currency headwinds, regulatory issues in India, and weakened consumer demand in China impacted the overall performance.
However, the company continued to focus on product innovation, emphasizing comfort technologies and strategic partnerships. Comprehensive marketing efforts, including new channels for football and basketball products, supported brand growth. Skechers remains committed to its goal of reaching $10 billion in annual sales by 2026.
Over the past year, shares of this Zacks Rank #1 (Strong Buy) company have gained 24.7% against the industry’s 30.3% decline.
Skechers U.S.A., Inc. Price, Consensus and EPS Surprise
Skechers U.S.A., Inc. price-consensus-eps-surprise-chart | Skechers U.S.A., Inc. Quote
Q2 Highlights
Skechers posted second-quarter earnings of 91 cents per share, missing the Zacks Consensus Estimate for earnings of 94 cents. Also, the bottom line declined 7.1% from the year-earlier quarter.
SKX generated sales of $2,157.6 million, lagging the consensus estimate of $2,219 million. However, the top line grew 7.2% year over year, driven by a 6.9% rise in international sales and a 7.7% increase in domestic sales. Improvements in domestic and international sales were driven by robust DTC and Wholesale sales. On a constant-currency basis, total sales grew 8.7%.
The company’s wholesale sales increased 5.5% year over year to $1.13 billion, while DTC rose 9.2% to $1.03 billion. Our estimate for wholesale and DTC sales was pegged at $1.15 billion and $1.05 billion, respectively.
Wholesale sales increased 10.3% year over year in the Americas (“AMER”), and 3.9% in Europe, the Middle East & Africa (EMEA), partially offset by …
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