Skechers Surges as Overseas Sales Help Profit Top EstimatesMatt Townsend
Skechers USA Inc. shares jumped the most in almost a year and a half after second-quarter sales and profit smashed analysts’ estimates, helped by new products and robust overseas growth.
Net income more than doubled in the quarter to $79.8 million, or $1.55 a share, the Manhattan Beach, California-based shoemaker said. Analysts expected $1.01. Revenue also topped estimates, rising 36 percent to $800.5 million.
Skechers has been riding high as its push to become more of an athletic-shoe brand is taking hold, especially among older adults who are buying its walking shoes. The company also is benefiting from more people seeking comfortable and casual shoes, a trend that’s been dubbed “athleisure.” International sales rose about 60 percent and now account for almost a third of Skechers’ revenue.
“At no other time in the history of our company have so many product lines resonated with consumers,” said David Weinberg, the company’s chief operating officer and chief financial officer. “We believe we will continue to achieve new sales and profit records through 2015.”
Skechers rose 16 percent to $148.99 at the close, the biggest one-day gain since February 2014. The stock had already more than doubled this year before the latest gain.