Skechers USA (SKX) reported earnings on Thur 19 Oct 2017 (a/h)

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Skechers USA beats by $0.15, beats on revs; guides Q4 EPS in-line, revs in-line

• Reports Q3 (Sep) earnings of $0.59 per share, $0.15 better than the Capital IQ Consensus of $0.44 and above prior guidance of $0.42-0.47; revenues rose 16.2% year/year to $1.09 bln vs the $1.07 bln Capital IQ Consensus and vs prior guidance of $1.05-1.075 bln.
  • The net sales growth was the result of a 25.7 percent increase in the co's international wholesale business, a 1.4 percent increase in its domestic wholesale business, and an 18.6 percent increase in its company-owned global retail business with total comp store sales increases of 4.4 percent.
  • The increase in its Company-owned retail business, which included sales growth of 9.5 percent in its domestic channel and a domestic comp store sales increase of 3.1 percent, came despite temporary store closures in Texas and Florida, and continued store closures in Puerto Rico due to the recent hurricanes.
  • Co reported net sales last year of $1.5 million for the days corresponding to the days closed this year due to the hurricanes. Gross profit for the third quarter of 2017 was $520.0 million, or 47.5 percent of net sales, compared to $430.0 million, or 45.6 percent of net sales, for the third quarter of 2016.
• Co issues in-line guidance for Q4, sees EPS of $0.09-0.14 vs. $0.12 Capital IQ Consensus Estimate; sees Q4 revs of $860-885 mln vs. $875.6 mln Capital IQ Consensus Estimate.
• Co says the growth came across our three distribution channels -- with double-digit increases in company-owned Skechers retail business worldwide and its international subsidiary and joint venture businesses, as well as a single-digit increase in its international distributor and domestic wholesale businesses. The strong international growth, including the continued strength in China, the resurgence of the United Kingdom and growth across all of Europe combined with its strong international retail business, resulted in international wholesale and retail representing 53% of total sales in Q3.