Skechers sales boom: As people return to the office, they want comfortable shoes


Shares of Skechers USA Inc. rallied nearly 7% late Thursday after the footwear maker reported a jump in quarterly sales and beat Wall Street expectations, saying that a return to offices in North America and beyond heated demand for its “comfort technology” shoes.

Skechers
SKX,
+1.89%
said it earned $137 million, or 88 cents a share, in the second quarter, contrasting with a loss of $68 million, or 44 cents a share, in the year-ago quarter. Adjusted for one-time items, Skechers earned 80 cents a share.

Sales rose to $1.66 billion, up nearly 130% from $730 million a year ago. Domestic and international sales rose thanks to increases in both wholesale and direct-to-consumer, Skechers said.

Analysts polled by FactSet expected Skechers to report adjusted earnings of 52 cents a share on sales of $1.5 billion.

“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,” Skechers said in a statement.

“Consumers are embracing a more relaxed lifestyle and want to incorporate comfort into their work and weekend wear,” and the company hammered that in new marketing campaigns, which paid off, Skechers said.

“Looking to the remainder of the year and into the next year, we remain confident in the strength of our brand and the relevance of our distinct product offering,” the company said.

Skechers guided for sales between $6.15 billion and $6.25 billion for fiscal 2021, and EPS between $2.55 and $2.65. For the third quarter, it called for sales between $1.60 billion and $1.65 billion, and EPS between 70 cents and 75 cents.

Shares of Skechers ended the regular trading day up 1.9%. So far this year, the stock has gained 43%, which compares with gains of 16% for the S&P 500 index
SPX,
+0.20%.



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