Skechers U.S.A., Inc. has recently released its 10-Q report, which provides an insight into the company's financial performance and operations. The company, headquartered in Manhattan Beach, California, designs, develops, markets, and distributes footwear for men, women, and children worldwide through various channels, including wholesale, direct-to-consumer, and licensing agreements.
In the 10-Q report, Skechers U.S.A., Inc. reported a quarterly sales record of $2.35 billion, marking a 15.9% increase compared to the same period in the prior year. The growth was driven by strong demand for its innovative footwear, with sales increasing in both the Wholesale and Direct-to-Consumer segments. The company also reported diluted earnings per share of $1.26, representing an increase of $0.33 per share compared to the prior year.
During the third quarter, the company's Board of Directors authorized a new three-year share repurchase program, under which the company may purchase up to $1.0 billion in shares of its Class A common stock. In the same quarter, the company repurchased 1.4 million shares of its Class A common stock at a cost of $90.0 million.
Skechers U.S.A., Inc. also focused on targeted demand creation initiatives, launching products such as Skechers x John Deere and expanding its Performance footwear line with the global release of Skechers Football boots and Skechers Basketball.
In terms of financial performance, the company's sales for the quarter ended September 30, 2024, increased by 15.9% to $2.35 billion compared to the same period in the prior year. Gross margin decreased by 80 basis points to 52.1%, primarily due to lower average selling prices driven by higher promotions. Operating expenses increased by 15.2% to $989.6 million, with selling expenses rising by 18.4% and general and administrative expenses increasing by 14.4%.
For the nine months ended September 30, 2024, Skechers U.S.A., Inc. reported sales of $6.76 billion, marking an 11.9% increase compared to the same period in the prior year. The company's gross margin increased by 160 basis points to 53.1%, driven by lower costs per unit, while operating expenses increased by 16.0% to $2.85 billion.
The Wholesale segment saw a 20.6% increase in sales, reaching $1.42 billion, while the Direct-to-Consumer segment experienced a 9.6% increase in sales, reaching $931.7 million for the quarter ended September 30, 2024.
As a result of these announcements, the company's shares have moved 1.9% on the market, and are now trading at a price of $62.6. For more information, read the company's full 10-Q submission here.
