Shares for Skechers USA Inc. are popping in after-hours trading following a strong second-quarter earnings report.
As of 4:30 p.m., the company saw its stock up more than 10% to $38. That was after it posted profits that soared 66% to $75.2 million, or 49 cents per share, compared with the 34 cents predicted by market watchers.
Sales rose 10.9% to $1.26 billion — up from Wall Street’s expected revenues of $1.22 billion. While its international business recorded a 19.8% increase, its domestic division saw gains of 1.5%. Same-store sales across the board also advanced 4.9%.
“We experienced growth in every region, with the biggest dollar increases coming from India, the Middle East and China, as well as in Mexico with the conversion of the business to a joint venture,” said COO David Weinberg in a statement.
In the past few months, Skechers has continued to build its business outside the United States, converting its joint venture in India to a wholly owned subsidiary during the period and finalizing a joint venture agreement with its distribution partner in Mexico this month.
The figures also come ahead of the crucial back-to-school shopping season. In the second quarter, the company reported a resurgence in its GOwalk and Skech-Air collections as well as its line of performance shoes, including the Go Run 7 Hyper and Go Run Maxroad 4 Hyper sneakers.
“Now in the third quarter, we are delivering our back-to-school and fall offerings and believe we have fresh styles in our core accounts that will drive growth,” added CEO Robert Greenberg. “We’re continuing to strategically view our business with a global lens as trends are traveling faster.”
Last month, Skechers celebrated two decades as a public company, ringing the closing bell at the New York Stock Exchange. In the years since its IPO, the footwear brand’s annual sales have increased more than tenfold, from $424.6 million in 1999 to $4.64 billion in 2018.
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