Skechers posts Q1 FY20 sales of $1.24 billion

24 Apr '20

2 min read

Pic: Skechers

Skechers USA, a global footwear leader, posted 2.7 per cent decline in its net sales to $1.24 billion in first quarter (Q1) FY20 ended on March 31, 2020 compared to sales of 1.27 billion in same period prior year. Net earnings fell from $108.8 million in Q1 FY19 to $49.1 million in the reported quarter. Gross profit in Q1 FY20 were $547.7 million.

“We experienced strong momentum throughout 2019, which continued into the first two months of 2020,” David Weinberg, chief operating officer of Skechers, said in a press release. “However, due to significantly reduced economic activity in China after January, and the spread of the Covid-19 pandemic around the rest of the world in March, sales decreased 2.7 per cent in the first quarter. Until then, Skechers business was on track for a new first quarter sales record.”

Selling, general and administrative expenses for the quarter were $508.1 million (Q1 FY19: $429.8 million).

The company’s domestic wholesale business increased 9.0 per cent, while company-owned direct-to-consumer business decreased 4.2 per cent. Company’s international wholesale business decreased 8.4 per cent. The company’s international wholesale business was reportedly impacted by results in China, which was down 47 per cent in the quarter and impacted by a significant return reserve to keep franchisee inventory levels clean with seasonally appropriate merchandise.

Skechers also stated that the company achieved the highest shipments ever from our North American and European distribution centres in January and February, and its worldwide comparable same store sales increased 9.8 per cent in company-owned direct-to-consumer business for the first two months of the quarter.

Fibre2Fashion News Desk (JL)

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