Skechers Q3 FY20: sales $1.30 bn; net earnings $64 mn

“Skechers third quarter results illustrate the strength and resilience of our brand, as business across the globe began to recover from the effects of the global pandemic. There were many bright spots, from a return to growth in our domestic wholesale channel and continued strength in e-commerce to resurgent growth in China and Europe,” John Vandemore, chief financial officer of Skechers, said in a press release.

 

Gross profit for Q3 FY20 was $625.1 million (Q3 FY19: $653.1 million). Selling, general and administrative expenses were $536.2 million ($511.9 million). Company’s earnings from operations were down 37.5 per cent to $92.1 million ($147.4 million).

 

Skechers domestic wholesale sales increased 6.3 per cent for Q3 FY20 and international wholesale sales decreased 0.5 per cent. Direct-to-consumer business plunged 16.9 per cent. 

 

“The demand in our e-commerce channels continued and we also saw strength in our re-opened big box stores. In the third quarter, we offered consumers alternative means to shop for Skechers through the launch of a new initiative to buy product online and pick up in store or curbside at Skechers retail locations across the United States. We also opened 24 company-owned stores planned prior to Covid including flagship locations on Rue de Rivoli in Paris, Oxford Circus in London, Shinjuku in Tokyo, and two stores in Colombia, bringing our store count to 3,770,” Vandemore said.