•
Jun 30, 2022

Skechers Q2 2022 Earnings Report

Skechers achieved record sales and EPS decreased compared to the same quarter last year.

Key Takeaways

Skechers reported record quarterly sales of $1.87 billion, a 12.4% increase year-over-year. However, diluted earnings per share decreased to $0.58, a 34.1% decrease compared to the prior year. The growth was driven by increases in both domestic and international businesses, with wholesale and direct-to-consumer segments contributing.

Record quarterly sales of $1.87 billion, a 12.4% increase year-over-year.

Wholesale sales grew by 18.3%.

Direct-to-Consumer sales grew by 4.3%.

Diluted earnings per share were $0.58.

Total Revenue
$1.87B
Previous year: $1.66B
+12.7%
EPS
$0.58
Previous year: $0.88
-34.1%
Total Skechers Stores
4.36K
Previous year: 4.06K
+7.3%
Gross Profit
$898M
Previous year: $850M
+5.7%
Cash and Equivalents
$752M
Previous year: $1.09B
-31.1%
Free Cash Flow
$215M
Previous year: $269M
-19.9%
Total Assets
$6.68B
Previous year: $5.76B
+15.8%

Skechers

Skechers

Skechers Revenue by Segment

Forward Guidance

For the third quarter of 2022, Skechers expects sales between $1.80 billion and $1.85 billion and diluted earnings per share between $0.70 and $0.75. For the full fiscal year 2022, the company anticipates sales between $7.2 billion and $7.4 billion and diluted earnings per share between $2.60 and $2.70.

Positive Outlook

  • Expected sales between $1.80 billion and $1.85 billion for Q3 2022.
  • Projected diluted earnings per share between $0.70 and $0.75 for Q3 2022.
  • Anticipated sales between $7.2 billion and $7.4 billion for fiscal year 2022.
  • Forecasted diluted earnings per share between $2.60 and $2.70 for fiscal year 2022.
  • Company believes that comfort technology footwear, impactful marketing and the strength of the brand will drive continued sales growth in the back half of the year.

Challenges Ahead

  • Macroeconomic headwinds
  • Supply chain issues
  • COVID-related restrictions in China
  • Unfavorable impact of $0.11 due to declines in foreign exchange rates, primarily in EMEA.
  • Challenges across the globe