US brand Skechers' sales surge 13.5% in Q4 FY22

Wholesale sales growth of $142.4 million, or 15.7 per cent YoY, was led by increases in Europe, Middle East, and Africa (EMEA) of 31.1 per cent YoY and North, Central, and South America (AMER) of 18.6 per cent YoY. Wholesale volume increased 9.4 per cent YoY and average selling price increased 6.3 per cent YoY, the company said in a press release.

Direct-to-consumer sales growth of $81 million, or 10.8 per cent YoY, was led by increases in AMER of 27 per cent YoY and EMEA of 19.1 per cent YoY. Direct-to-Consumer volume increased 14.8 per cent YoY and average selling price decreased 3.5 per cent YoY.

In Q4 FY22, gross margin was 48.4 per cent, a decrease of 40 basis points, primarily the result of higher cost per unit and increased promotions, partially offset by average selling price increases.

Operating expenses increased $107.9 million, or 15.1 per cent YoY, and as a percentage of sales increased 60 basis points to 43.8 per cent YoY. Selling expenses increased $19 million, or 13.7 per cent YoY, due to higher global digital and brand demand creation expenditures. General and administrative expenses increased $88.9 million, or 15.4 per cent YoY, and as a percentage of sales increased 60 basis points to 35.4 per cent YoY.

Net earnings in Q4 FY22 were $75.5 million and diluted earnings per share were $0.48 compared with prior year net earnings of $402.4 million and earnings per share of $2.56. Adjusted diluted earnings per share were $0.48 compared with prior year adjusted diluted earnings per share of $0.43.

Skechers’ FY22 sales increased 18 per cent YoY reflecting a 20 per cent increase domestically and a 16.6 per cent increase internationally with the largest contribution derived from wholesale sales. Both segments experienced increases, with wholesale increasing 23.2 per cent and Direct-to-consumer increasing 10.2 per cent.

For the fiscal 2023, the company expects sales between $7.75 billion and $8.0 billion and diluted earnings per share of between $2.80 and $3.00. The company expects that for the first quarter of 2023, it will achieve sales between $1.80 billion and $1.85 billion and diluted earnings per share of between $0.55 and $0.60. Further, the company estimates the total capital expenditures to be between $300 million and $350 million in FY23.

Fibre2Fashion News Desk (DP)