Skechers Reports Record Q1 2024 Revenue and Earnings, Beating Estimates

Skechers reports record Q1 2024 results, with revenue up 12.5% and EPS beating estimates by 20.91%. The company's strong global demand and innovative products drive growth, leading to raised full-year guidance.

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Skechers Reports Record Q1 2024 Revenue and Earnings, Beating Estimates

Skechers Reports Record Q1 2024 Revenue and Earnings, Beating Estimates

Skechers USA Inc. (NYSE:SKX) reported strong financial results for the first quarter of 2024, with revenue increasing 12.5% year-over-year to a record $2.25 billion, exceeding the Zacks Consensus Estimate by 2.98%. The company's earnings per share (EPS) came in at $1.33, beating analyst estimates of $1.10 per share by 20.91%.

The footwear company saw growth across all regions, with international sales representing 65% of total sales. Skechers' domestic wholesale business also returned to growth, increasing 8% over the previous year. Wholesale sales were up 9.8% overall, while direct-to-consumer sales jumped 17.3%.

Skechers attributed the strong global demand and healthy inventory position to its focus on evolving and innovating its product offering, partnerships, and exceptional global demand. The company highlighted partnerships with athletes and celebrities, as well as a 360-degree marketing approach, as contributors to the success.

Why this matters: Skechers' record-breaking performance demonstrates the company's resilience and ability to thrive in a competitive market. The strong financial results and raised guidance indicate Skechers' potential for continued growth and market share expansion.

Gross margin improved by 360 basis points to 52.5% of sales, driven by lower costs and higher average selling prices. Skechers ended the quarter with $1.25 billion in cash and $1.36 billion in inventory.

Looking ahead, Skechers raised its full-year 2024 revenue guidance from $8.6-$8.8 billion to $8.725-$8.875 billion, and its full-year EPS outlook from $3.65-$3.85 to $3.95-$4.10, both above consensus estimates. The company remains confident in its ongoing success and its goal of achieving $10 billion in sales by 2026.

"Skechers achieved a new first quarter sales record of $2.25 billion, a remarkable 12.5% increase over the prior year. This growth was driven by our dedicated team and innovative product offering, including the hugely popular Skechers Hands Free Slip-ins," stated David Weinberg, Chief Operating Officer of Skechers.

Key Takeaways

  • Skechers reported strong Q1 2024 results: revenue up 12.5% to $2.25B, EPS at $1.33.
  • Growth across all regions, with international sales at 65% of total. Domestic wholesale up 8%.
  • Gross margin improved to 52.5% due to lower costs and higher selling prices.
  • Skechers raised full-year 2024 guidance: revenue $8.725-$8.875B, EPS $3.95-$4.10.
  • Company remains confident in achieving $10B in sales by 2026.