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Dec 31, 2019

Skechers Q4 2019 Earnings Report

Skechers reported record fourth quarter sales and record annual sales in 2019.

Key Takeaways

Skechers announced record fourth quarter sales of $1.33 billion, a 23.1% increase, and diluted earnings per share of $0.39, a 25.8% increase. International sales increased by 31.2%, representing a record 59.3% of total sales. Domestic sales also grew by 13.0%, driven by a 10.4% increase in domestic wholesale.

Record quarterly sales of $1.33 billion, an increase of 23.1 percent.

Diluted earnings per share of $0.39, an increase of 25.8 percent.

International sales increased 31.2 percent, or 32.3 percent on a constant currency basis.

Domestic sales increased 13.0 percent, including an increase of 10.4 percent in domestic wholesale.

Total Revenue
$1.33B
Previous year: $1.08B
+23.1%
EPS
$0.39
Previous year: $0.31
+25.8%
Total Skechers Stores
3.55K
Gross Profit
$638M
Previous year: $516M
+23.7%
Cash and Equivalents
$825M
Previous year: $872M
-5.4%
Free Cash Flow
$15.8M
Previous year: $110M
-85.6%
Total Assets
$4.89B
Previous year: $3.23B
+51.6%

Skechers

Skechers

Skechers Revenue by Segment

Forward Guidance

For the first quarter of 2020, the Company believes it will achieve sales in the range of $1.400 billion to $1.425 billion, and diluted earnings per share of $0.70 to $0.75.

Positive Outlook

  • Continued growth in each of the Company’s three reportable segments
  • Full-year effective tax rate of 16 to 18 percent

Challenges Ahead

  • Significant number of temporary store closures in China
  • Below average comparable store sales in China
  • Estimate could materially change if the situation in China worsens considerably
  • Effects the Company’s business outside of China
  • Effects the Company’s supply chain

Revenue & Expenses

Visualization of income flow from segment revenue to net income