Skechers Reports Record Q3 2024 Earnings and Sales Growth

Skechers U.S.A. achieved a record $2.35 billion in Q3 2024 sales, marking a 16% increase year-over-year. Earnings per share rose 35% to $1.26, reflecting strong demand despite challenges in certain markets, such as China. The report indicates significant growth in wholesale and direct-to-consumer segments.

Date: 25-10-2024

AI Rating: 7

Financial Performance Overview

Skechers U.S.A. reported its third quarter 2024 earnings, highlighting several key financial metrics. The company achieved record sales of $2.35 billion, a 16% increase from the previous year. This growth was primarily driven by a strong performance across its wholesale and direct-to-consumer segments.

Earnings Per Share (EPS)

The company's earnings per diluted share were reported at $1.26, reflecting a robust 35% year-over-year increase. This significant rise in EPS indicates improved profitability and could positively influence investor sentiment.

Revenue Growth and Market Performance

The 16% revenue growth was beneficial for Skechers in maintaining its competitive position within the footwear market. Notably, wholesale sales grew by 21%, and direct-to-consumer sales saw a 9.6% increase. The company's international sales increased by 16%, showcasing strong global demand even with challenges in specific markets like China, where sales decreased 5.7%.

Gross Margin and Profitability

The gross margin for the quarter stood at 52.1%, slightly down from the previous year, mainly due to promotional activity affecting average selling prices. Operating margins, however, were reasonably healthy, and efforts to manage operating expenses are showing positive results.

Conclusion

The financial data presented demonstrate a strong performance from Skechers, alongside challenges in certain regions. The impressive EPS growth and significant sales increases are likely to have a positive impact on stock prices, suggesting solid investment potential.

Stocks: SKX