Skechers Turns To Profit In Q2, EPS Beats Street View
Los Angeles-based footwear company SKECHERS U.S.A., Inc. (SKX) turned to profit in the second quarter on increased sales. The earnings per share also beat the analysts’ estimates. Shares of the company gained nearly 8% in the extended session, following the news.
The net income for the quarter was $137.5 million or $0.88 earnings per share, bettered three times from a loss of $68.1 million or $0.44 loss per share in the same quarter last year.
Excluding special items, the earnings for the company were $124.7 million or $0.80 per share. Nine analysts polled by Thomson Reuters estimated the earnings to be $0.49 earnings per share. Analysts usually discard special items from consideration.
The revenue for the quarter jumped 127% to $1.6 billion, from $729 million in the previous year. On an adjusted basis the revenue was $1.58 billion. Seven analysts estimated revenue of $1.48 billion.
The company forecasts revenue between $6.15 billion and $6.25 billion for the full year with the earnings to be in the range of $2.55 and $2.65 per share. Eleven analysts view the revenue to be $5.92 billion with earnings of $2.1 per share.
For the third quarter, the company estimates the revenue to be in the range of $1.60 billion and $1.65 billion with earnings between $0.70 and $0.75. In the books of seven analysts, the revenue for the third quarter will be $1.48 billion while nine analysts see the earnings to be $0.49 per share.
Talking about the steep rise, David Weinberg, COO of Skechers said, ” With a higher average selling price and significantly more units sold, we saw sales increases of 205.7% in Domestic Wholesale, 137.8% in Direct-to-Consumer, and 94.8% in International Wholesale over the second quarter of 2020. As consumers began returning to a more normal lifestyle in many markets, demand increased for our comfort technology products, including in North America, across Europe, and in China, which achieved double-digit gains over both 2020 and 2019.”
SKX closed Thursday’s regular trading at $51.21, up $0.95 or 1.89%, on the NYSE. The stock further gained $3.99 or 7.79% in the after-hours trade.
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