SKX
$39.45
Skechers U.S.A.
($.87)
(2.16%)
Earnings Details
2nd Quarter June 2022
Tuesday, July 26, 2022 4:05:00 PM
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Summary

Skechers U.S.A. Misses

Skechers U.S.A. (SKX) reported 2nd Quarter June 2022 earnings of $0.58 per share on revenue of $1.9 billion. The consensus earnings estimate was $0.54 per share on revenue of $1.8 billion. The Earnings Whisper number was $0.59 per share. Revenue grew 12.7% on a year-over-year basis.

The company said it expects third quarter earnings of $0.70 to $0.75 per share on revenue of $1.80 billion to $1.85 billion. The current consensus earnings estimate is $0.84 per share on revenue of $1.83 billion for the quarter ending September 30, 2022. The company also said it now expects 2022 earnings of $2.60 to $2.70 per share and continues to expect revenue of $7.20 billion to $7.40 billion. The company's previous guidance was earnings of $2.75 to $2.95 per share and the current consensus earnings estimate is $2.86 per share on revenue of $7.35 billion for the year ending December 31, 2022.

Skechers USA Inc designs and markets Skechers-branded lifestyle footwear for men, women and children, and performance footwear for men and women under the Skechers GO brand name.

Results
Reported Earnings
$0.58
Earnings Whisper
$0.59
Consensus Estimate
$0.54
Reported Revenue
$1.87 Bil
Revenue Estimate
$1.79 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Skechers Announces Record Second Quarter 2022 Sales

LOS ANGELES--(BUSINESS WIRE)--SKECHERS U.S.A., Inc. (“Skechers” or the “Company”) (NYSE:SKX), The Comfort Technology Company™ and a global footwear leader, today announced financial results for the second quarter ended June 30, 2022.

Second Quarter Highlights

  • Record quarterly sales of $1.87 billion, a year-over-year increase of 12.4%
  • Wholesale sales grew 18.3%
  • Direct-to-Consumer sales grew 4.3%
  • Diluted earnings per share of $0.58
  • Repurchased $24.2 million of common stock

“Skechers achieved a new quarterly sales record of $1.87 billion, a significant accomplishment especially given the macroeconomic headwinds, supply chain issues and COVID-related restrictions in China during the period,” said David Weinberg, Chief Operating Officer of Skechers. “The growth was the result of increases in sales of 15% in our domestic and 10% in our international businesses. Growth was driven by sales increases of 21% in the Americas and 8% in EMEA. In APAC, where sales were flat due to COVID-related restrictions in China, we saw strong growth in most other markets, particularly in India, South Korea and Malaysia. During the quarter, we focused on delivering our in-demand footwear direct to consumers and through our wholesale partners globally. While we remain cautious given the challenges across the globe, we believe our comfort technology footwear, impactful marketing and the strength of our brand will drive continued sales growth in the back half of the year.”

“2022 is shaping up to be another remarkable year for Skechers with two consecutive record sales quarters, the result of our talented team’s passion, determination and execution to evolve our product offering, inform the world of our exceptional comfort technologies, and effectively navigate the supply chain constraints,” began Robert Greenberg, Chief Executive Officer of Skechers. “In the second quarter, we delivered hands-free comfort footwear to a world now desiring more ease in their lives, expanded our Skechers Arch Fit offering, and designed more fashion-focused styles as comfort at work and play is the new norm. Further, we elevated our performance game with the launch of Skechers Viper Court, a collection designed specifically for the fastest growing sport in America, pickleball, and saw major championship wins on the golf course with Brooke Henderson at this past weekend’s Amundi Evian Championship in France and Matt Fitzpatrick at the U.S. Open at Brookline last month. We also signed several new ambassadors—specific to Europe and Asia, as well as a rising Latin music artist and a global pop sensation, all to further strengthen brand awareness in key markets. This, our 30th year in business, is our strongest year yet from a sales, marketing and product perspective. We are in a unique position as a brand that delivers on comfort technology, style, innovation and quality with a global reach that includes 4,355 Skechers stores. As a company, we are determined to outdo ourselves and reach further heights as we strive to meet our customers’ needs.”

Second Quarter 2022 Financial Results

 

 

Three Months Ended June 30,

 

Change

 

(in millions, except per share data)

 

2022

 

2021

 

$

 

%

 

Sales

 

$

1,867.8

 

$

1,661.9

 

 

205.9

 

 

12.4

 

Gross profit

 

 

897.6

 

 

853.6

 

 

44.0

 

 

5.2

 

Gross margin

 

 

48.1

%

 

51.4

%

 

 

 

 

(330

) bps

Operating expenses

 

 

743.4

 

 

652.4

 

 

91.0

 

 

14.0

 

As a % of sales

 

 

39.8

%

 

39.3

%

 

 

 

 

50

bps

Earnings from operations

 

 

154.2

 

 

201.2

 

 

(47.0

)

 

(23.4

)

Operating margin

 

 

8.3

%

 

12.1

%

 

 

 

 

(390

) bps

Net earnings

 

$

90.4

 

$

137.4

 

 

(47.0

)

 

(34.2

)

Diluted earnings per share

 

$

0.58

 

$

0.88

 

 

(0.30

)

 

(34.1

)

Second quarter sales increased 12.4% as a result of a 15.4% increase in domestic sales and a 10.0% increase in international sales, primarily driven by strength in wholesale sales. All segments experienced growth, with Wholesale increasing 18.3% and Direct-to-Consumer increasing 4.3%. On a constant currency basis, sales increased 16.4%.

Wholesale sales growth of $176.1 million, or 18.3%, was led by increases in AMER of 34.9%. Wholesale volume increased 14.8% and average selling price increased 3.1%.

Direct-to-Consumer sales growth of $29.8 million, or 4.3%, was led by increases in AMER of 3.7%, EMEA of 13.5%, and APAC of 2.7%. Direct-to-Consumer average selling price increased 5.3% and volume was essentially flat.

Gross margin was 48.1%, a decrease of 330 basis points, primarily driven by higher per unit freight costs partially offset by average selling price increases.

Operating expenses increased $91.0 million, or 14.0%, and as a percentage of sales, increased 50 basis points to 39.8% from 39.3% in the prior year. Selling expenses increased $25.1 million, or 17.8%, due to higher global demand creation expenditures. General and administrative expenses increased $65.9 million, or 12.9%, primarily due to volume-driven increases in labor and warehouse and distribution expenses, as well as higher rent.

Earnings from operations decreased $47.0 million, or 23.4%, to $154.2 million.

Net earnings were $90.4 million and diluted earnings per share were $0.58, a decrease of 34.1% over the prior year. Diluted earnings per share include an unfavorable impact of $0.11 due to declines in foreign exchange rates, primarily in EMEA.

In the second quarter, the Company’s effective income tax rate was 21.3%.

“Skechers continued the diligent execution of our long-term global growth strategy, achieving record quarterly sales primarily from continued strength in our Wholesale segment,” stated John Vandemore, Chief Financial Officer of Skechers. “Despite pandemic-related lockdowns, disruptions in our global supply chain and macroeconomic volatility, we remain focused on our direct-to-consumer capabilities, distribution infrastructure and deepening connections with our consumers in order to drive long-term growth and shareholder value.”

Six Months 2022 Financial Results

 

 

Six Months Ended June 30,

 

Change

 

(in millions, except per share data)

 

2022

 

2021

 

$

 

%

 

Sales

 

$

3,687.4

 

$

3,096.3

 

 

591.1

 

 

19.1

 

Gross profit

 

 

1,721.7

 

 

1,539.3

 

 

182.4

 

 

11.9

 

Gross margin

 

 

46.7

%

 

49.7

%

 

 

 

 

(300

) bps

Operating expenses

 

 

1,391.7

 

 

1,180.4

 

 

211.3

 

 

17.9

 

As a % of sales

 

 

37.7

%

 

38.1

%

 

 

 

 

(40

) bps

Earnings from operations

 

 

330.1

 

 

358.9

 

 

(28.8

)

 

(8.0

)

Operating margin

 

 

9.0

%

 

11.6

%

 

 

 

 

(260

) bps

Net earnings

 

$

211.6

 

$

235.9

 

 

(24.3

)

 

(10.3

)

Diluted earnings per share

 

$

1.35

 

$

1.51

 

 

(0.16

)

 

(10.6

)

Year-to-date sales increased 19.1% reflecting a 21.4% increase in domestic sales and a 17.3% increase in international sales with the largest contribution derived from wholesale sales. Both segments experienced increases, with Wholesale increasing 25.4% and Direct-to-Consumer increasing 9.0%. On a constant currency basis, the Company’s total sales increased 22.1%.

Wholesale sales growth of $484.3 million, or 25.4%, was led by increases in AMER of 38.2% and EMEA of 24.0%. Wholesale volume increased 18.8% and average selling price increased 5.9%.

Direct-to-Consumer sales growth of $106.8 million, or 9.0%, was led by increases in AMER of 6.8%, EMEA of 44.2%, which experienced COVID restrictions in the prior year, and APAC of 5.3%. Direct-to-Consumer average selling price increased 9.4% resulting from reduced promotions and higher prices.

Gross margin was 46.7%, a decrease of 300 basis points, primarily driven by higher per unit freight costs partially offset by average selling price increases.

Operating expenses increased $211.3 million or 17.9%. As a percentage of sales, operating expenses improved 40 basis points to 37.7%. Selling expenses increased $42.0 million or 18.1%, primarily due to higher global demand creation expenditures. General and administrative expenses increased $169.3 million or 17.9%, primarily due to higher compensation costs, rent, and volume-driven global warehouse and distribution expenses.

Earnings from operations decreased $28.8 million to $330.1 million.

Net earnings were $211.6 million and diluted earnings per share were $1.35, a decrease of 10.6% over the prior year. Diluted earnings per share include an unfavorable impact of $0.14 due to declines in foreign exchange rates, primarily in EMEA.

The Company’s effective income tax rate was essentially flat year-over-year at 20.6%.

Balance Sheet

Cash, cash equivalents and investments totaled $946.4 million, a decrease of $94.0 million, or 9.0% from December 31, 2021, primarily as a result of changes in working capital and completing $49.2 million of share repurchases year-to-date.

Inventory was $1.56 billion, an increase of $92.9 million or 6.3% from December 31, 2021. Increased inventory levels primarily reflect growth in AMER.

Share Repurchase

During the second quarter, the Company repurchased nearly 636,000 shares of its Class A common stock for $24.2 million. Year-to-date 2022, the Company has repurchased almost 1.3 million shares of its Class A common stock at a cost of $49.2 million. At June 30, 2022, approximately $450.8 million remained available under the Company’s share repurchase program.

Outlook

For the third quarter of 2022, the Company believes it will achieve sales between $1.80 billion and $1.85 billion and diluted earnings per share of between $0.70 and $0.75. Further, the Company believes that for the fiscal year 2022, it will achieve sales between $7.2 billion and $7.4 billion and diluted earnings per share of between $2.60 and $2.70.

Store Count

 

 

Number of Stores

 

 

December 31, 2021

 

Opened

 

Closed(1)

 

June 30, 2022

 

Domestic stores

 

 

515

 

 

28

 

 

(17

)

 

526

 

International stores

 

 

845

 

 

49

 

 

(58

)

 

836

 

Distributor, licensee and franchise stores

 

 

2,946

 

 

202

 

 

(155

)

 

2,993

 

Total Skechers stores

 

 

4,306

 

 

279

 

 

(230

)

 

4,355

 

(1)

 

Does not reflect temporary closures due to the COVID-19 pandemic.

Second Quarter 2022 Conference Call

The Company will host a conference call today at 4:30 p.m. ET / 1:30 p.m. PT to discuss its second quarter 2022 financial results. The call can be accessed on the Investor Relations section of the Company’s website at investors.skechers.com. For those unable to participate during the live broadcast, a replay will be available beginning July 26, 2022 at 7:30 p.m. ET, through August 9, 2022, at 11:59 p.m. ET. To access the replay, dial 844-512-2921 (U.S.) or 412-317-6671 (International) and use passcode: 13731127.

About SKECHERS U.S.A., Inc.

Skechers U.S.A., Inc., The Comfort Technology Company™, based in Southern California, designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. The Company’s collections are available in over 180 countries and territories through department and specialty stores, and direct to consumers through digital stores and 4,355 Company- and third-party-owned physical retail stores. The Company manages its international business through a network of wholly-owned subsidiaries, joint venture partners, and distributors. For more information, please visit about.skechers.com and follow us on Facebook, Instagram, Twitter and TikTok.

Reference in this press release to “Sales” refers to Skechers’ net sales reported under GAAP. This announcement contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include, without limitation, Skechers’ future domestic and international growth, financial results and operations including expected net sales and earnings, its development of new products, future demand for its products, its planned domestic and international expansion, opening of new stores and additional expenditures, and advertising and marketing initiatives. Forward-looking statements can be identified by the use of forward-looking language such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” “project,” “will,” “could,” “may,” “might,” or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements. Factors that might cause or contribute to such differences include the disruption of business and operations due to the COVID-19 pandemic; delays or disruptions in our supply chain; international economic, political and market conditions including the effects of inflation around the world, the challenging consumer retail markets in the United States and the impact of Russia’s invasion of Ukraine; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers; decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers, especially in the highly competitive performance footwear market; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in Skechers’ annual report on Form 10-K for the year ended December 31, 2021 and its quarterly reports on Form 10-Q in 2022. Taking these and other risk factors associated with the COVID-19 pandemic into consideration, the dynamic nature of these circumstances means that what is stated in this press release could change at any time, and as a result, actual results could differ materially from those contemplated by such forward-looking statements. The risks included here are not exhaustive. Skechers operates in a very competitive and rapidly changing environment. New risks emerge from time to time and we cannot predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. Moreover, reported results should not be considered an indication of future performance.

SKECHERS U.S.A., INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

As of

 

 

As of

 

(in thousands)

 

June 30, 2022

 

 

December 31, 2021

 

ASSETS

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

751,904

 

 

$

796,283

 

Short-term investments

 

 

105,099

 

 

 

98,580

 

Trade accounts receivable, net

 

 

916,784

 

 

 

732,793

 

Other receivables

 

 

55,039

 

 

 

80,043

 

Inventory

 

 

1,563,907

 

 

 

1,470,994

 

Prepaid expenses and other

 

 

177,236

 

 

 

193,547

 

Total current assets

 

 

3,569,969

 

 

 

3,372,240

 

Property, plant and equipment, net

 

 

1,225,529

 

 

 

1,128,909

 

Operating lease right-of-use assets

 

 

1,168,385

 

 

 

1,224,580

 

Deferred tax assets

 

 

452,747

 

 

 

451,355

 

Long-term investments

 

 

89,423

 

 

 

145,590

 

Goodwill

 

 

93,497

 

 

 

93,497

 

Other assets, net

 

 

77,046

 

 

 

75,109

 

Total non-current assets

 

 

3,106,627

 

 

 

3,119,040

 

TOTAL ASSETS

 

$

6,676,596

 

 

$

6,491,280

 

LIABILITIES AND EQUITY

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

972,399

 

 

$

876,342

 

Accrued expenses

 

 

258,640

 

 

 

265,420

 

Operating lease liabilities

 

 

223,230

 

 

 

225,658

 

Current installments of long-term borrowings

 

 

73,414

 

 

 

76,967

 

Short-term borrowings

 

 

 

 

 

1,195

 

Total current liabilities

 

 

1,527,683

 

 

 

1,445,582

 

Long-term operating lease liabilities

 

 

1,049,330

 

 

 

1,094,748

 

Long-term borrowings

 

 

253,260

 

 

 

263,445

 

Deferred tax liabilities

 

 

9,712

 

 

 

11,820

 

Other long-term liabilities

 

 

118,507

 

 

 

133,613

 

Total non-current liabilities

 

 

1,430,809

 

 

 

1,503,626

 

Total liabilities

 

 

2,958,492

 

 

 

2,949,208

 

Stockholders’ equity

 

 

 

 

 

 

 

 

Preferred Stock

 

 

 

 

 

 

Class A Common Stock

 

 

135

 

 

 

135

 

Class B Common Stock

 

 

21

 

 

 

21

 

Additional paid-in capital

 

 

402,360

 

 

 

429,608

 

Accumulated other comprehensive loss

 

 

(75,784

)

 

 

(48,323

)

Retained earnings

 

 

3,089,530

 

 

 

2,877,903

 

Skechers U.S.A., Inc. equity

 

 

3,416,262

 

 

 

3,259,344

 

Noncontrolling interests

 

 

301,842

 

 

 

282,728

 

Total stockholders' equity

 

 

3,718,104

 

 

 

3,542,072

 

TOTAL LIABILITIES AND EQUITY

 

$

6,676,596

 

 

$

6,491,280

 

 

SKECHERS U.S.A., INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(in thousands, except per share data)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Sales

 

$

1,867,804

 

 

$

1,661,871

 

 

$

3,687,398

 

 

$

3,096,326

 

Cost of sales

 

 

970,225

 

 

 

808,279

 

 

 

1,965,656

 

 

 

1,557,075

 

Gross profit

 

 

897,579

 

 

 

853,592

 

 

 

1,721,742

 

 

 

1,539,251

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling

 

 

166,609

 

 

 

141,470

 

 

 

274,818

 

 

 

232,795

 

General and administrative

 

 

576,812

 

 

 

510,912

 

 

 

1,116,862

 

 

 

947,578

 

Total operating expenses

 

 

743,421

 

 

 

652,382

 

 

 

1,391,680

 

 

 

1,180,373

 

Earnings from operations

 

 

154,158

 

 

 

201,210

 

 

 

330,062

 

 

 

358,878

 

Other income (expense)

 

 

(19,259

)

 

 

2,158

 

 

 

(25,005

)

 

 

(12,016

)

Earnings before income taxes

 

 

134,899

 

 

 

203,368

 

 

 

305,057

 

 

 

346,862

 

Income tax expense

 

 

28,739

 

 

 

41,545

 

 

 

62,731

 

 

 

70,530

 

Net earnings

 

 

106,160

 

 

 

161,823

 

 

 

242,326

 

 

 

276,332

 

Less: Net earnings attributable to noncontrolling interests

 

 

15,756

 

 

 

24,454

 

 

 

30,699

 

 

 

40,390

 

Net earnings attributable to Skechers U.S.A., Inc.

 

$

90,404

 

 

$

137,369

 

 

$

211,627

 

 

$

235,942

 

Net earnings per share attributable to Skechers U.S.A., Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.58

 

 

$

0.88

 

 

$

1.36

 

 

$

1.52

 

Diluted

 

$

0.58

 

 

$

0.88

 

 

$

1.35

 

 

$

1.51

 

Weighted-average shares used in calculating net earnings per share attributable to Skechers U.S.A., Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

155,941

 

 

 

155,561

 

 

 

155,969

 

 

 

155,196

 

Diluted

 

 

156,748

 

 

 

156,674

 

 

 

157,074

 

 

 

156,321

 

 

SKECHERS U.S.A., INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(Unaudited)

  

As previously announced, during the first quarter of 2022 Skechers refined the way it views its business operations and decision-making and now presents its reportable segment results as Wholesale and Direct-to-Consumer. Prior period results have been recast to reflect current reportable segments. There was no impact to the consolidated financial results of the Company as a result of this change.

  

Segment Information

 

 

Three Months Ended June 30,

 

 

Change

 

(in millions)

 

2022

 

 

2021

 

 

$

 

%

 

Wholesale sales

 

$

1,140.3

 

 

$

964.2

 

 

 

176.1

 

 

18.3

 

Gross profit

 

 

414.5

 

 

 

379.4

 

 

 

35.1

 

 

9.2

 

Gross margin

 

 

36.3

%

 

 

39.4

%

 

 

 

 

 

(300

) bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct-to-Consumer sales

 

$

727.5

 

 

$

697.7

 

 

 

29.8

 

 

4.3

 

Gross profit

 

 

483.1

 

 

 

474.2

 

 

 

8.9

 

 

1.9

 

Gross margin

 

 

66.4

%

 

 

68.0

%

 

 

 

 

 

(160

) bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total sales

 

$

1,867.8

 

 

$

1,661.9

 

 

 

205.9

 

 

12.4

 

Gross profit

 

 

897.6

 

 

 

853.6

 

 

 

44.0

 

 

5.2

 

Gross margin

 

 

48.1

%

 

 

51.4

%

 

 

 

 

 

(330

) bps

 

 

Six Months Ended June 30,

 

 

Change

 

(in millions)

 

2022

 

 

2021

 

 

$

 

%

 

Wholesale sales

 

$

2,391.6

 

 

$

1,907.3

 

 

 

484.3

 

 

25.4

 

Gross profit

 

 

869.4

 

 

 

749.0

 

 

 

120.4

 

 

16.1

 

Gross margin

 

 

36.4

%

 

 

39.3

%

 

 

 

 

 

(290

) bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct-to-Consumer sales

 

$

1,295.8

 

 

$

1,189.0

 

 

 

106.8

 

 

9.0

 

Gross profit

 

 

852.3

 

 

 

790.3

 

 

 

62.0

 

 

7.9

 

Gross margin

 

 

65.8

%

 

 

66.5

%

 

 

 

 

 

(70

) bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total sales

 

$

3,687.4

 

 

$

3,096.3

 

 

 

591.1

 

 

19.1

 

Gross profit

 

 

1,721.7

 

 

 

1,539.3

 

 

 

182.4

 

 

11.9

 

Gross margin

 

 

46.7

%

 

 

49.7

%

 

 

 

 

 

(300

) bps

 

Additional Sales Information

    

 

Three Months Ended June 30,

 

 

Change 

 

(in millions)

 

2022

 

2021

 

$ 

 

 

%

 

Geographic sales

 

 

 

  

 

 

  

 

 

 

 

 

 

Domestic

 

 

 

  

 

 

  

 

 

 

 

 

 

Wholesale

 

$

521.0

  

$

401.3

  

 

119.7

 

 

29.8

 

Direct-to-Consumer

 

 

319.5

  

 

327.0

  

 

(7.5

)

 

(2.3

)

Total domestic sales

 

 

840.5

  

 

728.3

  

 

112.2

 

 

15.4

 

 

 

 

 

  

 

 

  

 

 

 

 

 

 

International

 

 

 

  

 

 

  

 

 

 

 

 

 

Wholesale

 

 

619.3

  

 

562.9

  

 

56.4

 

 

10.0

 

Direct-to-Consumer

 

 

408.0

  

 

370.7

  

 

37.3

 

 

10.1

 

Total international sales

 

 

1,027.3

  

 

933.6

  

 

93.7

 

 

10.0

 

 

 

 

 

  

 

 

  

 

 

 

 

 

 

Total sales

 

$

1,867.8

  

$

1,661.9

  

 

205.9

 

 

12.4

 

 

 

 

 

  

 

 

  

 

 

 

 

 

 

Regional sales

 

 

 

  

 

 

  

 

 

 

 

 

 

Americas (AMER)

 

$

1,033.9

  

$

855.2

  

 

178.7

 

 

20.9

 

Europe, Middle East & Africa (EMEA)

 

 

374.5

  

 

348.1

  

 

26.4

 

 

7.6

 

Asia Pacific (APAC)

 

 

459.4

  

 

458.6

  

 

0.8

 

 

0.2

 

Total sales

 

$

1,867.8

  

$

1,661.9

  

 

205.9

 

 

12.4

 

 

 

 

 

  

 

 

  

 

 

 

 

 

 

China sales

 

$

254.9

  

$

316.9

  

 

(62.0

)

 

(19.6

)

 

 

 

 

  

 

 

  

 

 

 

 

 

 

Distributor sales

 

$

128.4

  

$

96.7

  

 

31.7

 

 

32.8

 

 

 

Six Months Ended June 30,

 

 

Change

 

(in millions)

 

2022

 

2021

 

 

$

 

%

 

Geographic sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale

 

$

1,059.6

 

 

$

778.5

 

 

 

281.1

 

 

36.1

 

Direct-to-Consumer

 

 

559.0

 

 

 

554.4

 

 

 

4.6

 

 

0.8

 

Total domestic sales

 

 

1,618.6

 

 

 

1,332.9

 

 

 

285.7

 

 

21.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale

 

 

1,332.0

 

 

 

1,128.8

 

 

 

203.2

 

 

18.0

 

Direct-to-Consumer

 

 

736.8

 

 

 

634.6

 

 

 

102.2

 

 

16.1

 

Total international sales

 

 

2,068.8

 

 

 

1,763.4

 

 

 

305.4

 

 

17.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total sales

 

$

3,687.4

 

 

$

3,096.3

 

 

 

591.1

 

 

19.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regional sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas (AMER)

 

$

1,980.8

 

 

$

1,580.9

 

 

 

399.9

 

 

25.3

 

Europe, Middle East & Africa (EMEA)

 

 

815.7

 

 

 

643.5

 

 

 

172.2

 

 

26.8

 

Asia Pacific (APAC)

 

 

890.9

 

 

 

871.9

 

 

 

19.0

 

 

2.2

 

Total sales

 

$

3,687.4

 

 

$

3,096.3

 

 

 

591.1

 

 

19.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

China sales

 

$

527.9

 

 

$

567.5

 

 

 

(39.6

)

 

(7.0

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributor sales

 

$

225.4

 

 

$

176.9

 

 

 

48.5

 

 

27.4

 

 

SKECHERS U.S.A., INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING

NON-GAAP FINANCIAL MEASURES (Unaudited)

 
Constant Currency Adjustment (Non-GAAP Financial Measure)
We evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of period-over-period fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our results of operations, thereby facilitating period-to-period comparisons of our business performance and is consistent with how management evaluates the Company’s performance. We calculate constant currency percentages by converting our current period local currency financial results using the prior-period exchange rates and comparing these adjusted amounts to our prior period reported results.
 

 

 

Three Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

Change

 

(in millions, except per share data)

 

Reported GAAP

Measure

 

 

Constant Currency

Adjustment

 

 

Adjusted for Non-

GAAP Measures

 

 

Reported GAAP

Measure

 

 

$

 

 

%

 

Sales

 

$

1,867.8

 

 

$

65.9

 

 

$

1,933.7

 

 

$

1,661.9

 

 

 

271.8

 

 

 

16.4

 

Cost of sales

 

 

970.2

 

 

 

38.5

 

 

 

1,008.7

 

 

 

808.3

 

 

 

200.4

 

 

 

24.8

 

Gross profit

 

 

897.6

 

 

 

27.4

 

 

 

925.0

 

 

 

853.6

 

 

 

71.4

 

 

 

8.4

 

Operating expenses

 

 

743.4

 

 

 

23.3

 

 

 

766.7

 

 

 

652.4

 

 

 

114.3

 

 

 

17.5

 

Earnings from operations

 

 

154.2

 

 

 

4.1

 

 

 

158.3

 

 

 

201.2

 

 

 

(42.9

)

 

 

(21.3

)

Other income (expense)

 

 

(19.3

)

 

 

16.2

 

 

 

(3.1

)

 

 

2.2

 

 

 

(5.3

)

 

n/m

 

Income tax expense

 

 

28.7

 

 

 

1.3

 

 

 

30.0

 

 

 

41.5

 

 

 

(11.5

)

 

 

(27.7

)

Less: Noncontrolling interests

 

 

15.8

 

 

 

0.5

 

 

 

16.3

 

 

 

24.5

 

 

 

(8.2

)

 

 

(33.5

)

Net earnings

 

$

90.4

 

 

$

18.5

 

 

$

108.9

 

 

$

137.4

 

 

 

(28.5

)

 

 

(20.7

)

Diluted earnings per share

 

$

0.58

 

 

$

0.11

 

 

$

0.69

 

 

$

0.88

 

 

 

(0.19

)

 

 

(21.6

)

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

Change

 

(in millions, except per share data)

 

Reported GAAP

Measure

 

 

Constant Currency

Adjustment

 

 

Adjusted for Non-

GAAP Measures

 

 

Reported GAAP

Measure

 

 

$

 

 

%

 

Sales

 

$

3,687.4

 

 

$

93.0

 

 

$

3,780.4

 

 

$

3,096.3

 

 

 

684.1

 

 

 

22.1

 

Cost of sales

 

 

1,965.7

 

 

 

57.0

 

 

 

2,022.7

 

 

 

1,557.0

 

 

 

465.7

 

 

 

29.9

 

Gross profit

 

 

1,721.7

 

 

 

36.0

 

 

 

1,757.7

 

 

 

1,539.3

 

 

 

218.4

 

 

 

14.2

 

Operating expenses

 

 

1,391.7

 

 

 

30.0

 

 

 

1,421.7

 

 

 

1,180.4

 

 

 

241.3

 

 

 

20.4

 

Earnings from operations

 

 

330.1

 

 

 

6.0

 

 

 

336.0

 

 

 

358.9

 

 

 

(22.9

)

 

 

(6.4

)

Other income (expense)

 

 

(25.1

)

 

 

18.7

 

 

 

(6.4

)

 

 

(12.1

)

 

 

5.7

 

 

 

(47.1

)

Income tax expense

 

 

62.7

 

 

 

1.3

 

 

 

64.0

 

 

 

70.5

 

 

 

(6.5

)

 

 

(9.2

)

Less: Noncontrolling interests

 

 

30.7

 

 

 

0.2

 

 

 

30.9

 

 

 

40.4

 

 

 

(9.5

)

 

 

(23.5

)

Net earnings

 

$

211.6

 

 

$

23.2

 

 

$

234.7

 

 

$

235.9

 

 

 

(1.2

)

 

 

(0.5

)

Diluted earnings per share

 

$

1.35

 

 

$

0.14

 

 

$

1.49

 

 

$

1.51

 

 

 

(0.02

)

 

 

(1.3

)

 

Investor Relations
Eunice Han
investors@skechers.com

Press
Jennifer Clay
jennc@skechers.com

Source: SKECHERS U.S.A., Inc.