Footwear brand Skechers has reported a sales increase of 8.9% to $4.014bn in the first half (H1) of fiscal 2023 (FY23), compared to $3.687bn in FY22.
The figure reflects a 19.5% rise in international sales and a 4.7% fall domestically.
Driven by a higher proportion of direct-to-consumer sales and higher average selling prices in Wholesale, the company’s gross margin increased 410 basis points (bps) to 50.8% in H1 FY23 from 46.7% in the same period last year.
Its gross profit grew by 18.4% to $2.03bn in H1 FY23.
During the period ending 30 June, Skechers’ operating expenses also increased 14.8% to $1.59bn.
Its earnings from operations increased to $441.3m and its net earnings were $313.2m in H1 FY23.
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By GlobalDataThe company’s diluted earnings per share were $2.00 over the quarter, up 48.1% from $1.35 in the same period a year ago.
In the second quarter of FY23, Skechers saw its sales grow 7.7%, driven by 17.9% and 4.6% growth in its international and domestic businesses, respectively.
The company’s gross margin was 52.7% in Q2 FY23, up 460bps from 48.1% in the same period last year.
Skechers reported earnings from operations of $217.7m in Q2 FY23 while its net earnings for the period were $152.8m. Its diluted EPS increased 69.0% to $0.98.
Skechers chief executive officer Robert Greenberg said: “The second quarter marked yet another sales record and a new milestone as we made the Fortune 500 list of largest companies, a testament to the strength of our brand and the dedication of our entire organisation to consistently create, innovate and meet the footwear needs of consumers.
“Not only are we outfitting the world in the most comfortable lifestyle footwear, but we are also offering high-performance golf and pickleball shoes and delivering memorable collaborations like our iconic Rolling Stones collection in June and our Skechers x Ashley Park capsule launched just last week. We strongly believe in the importance of driving awareness of our vast offering.”
The company anticipates sales between $1.95bn and $2.0bn in the third quarter of fiscal 2023. It also expects diluted EPS between $0.70 and $0.75.
