Skechers is coming out of its pandemic woes. The performance footwear company released second-quarter results, reporting $137.4 million in net earnings compared to the $68.1 million it lost during the same quarter last year.
After Nike reported a strong recovery in 2021, Puma also followed its footsteps, after reporting a 96% growth in sales from last year. Skechers now becomes the third brand to join in, proving that sports manufacturing sectors are making sharp recoveries post-pandemic. Quarterly sales rose 127% year-over-year to $1.66 billion, a new record for the brand.
Sales grew across all segments with increases to Domestic Wholesale of 205.7%, International Wholesale of 94.8%, and Direct-to-Consumer of 137.8%. Improvements in Domestic Wholesale were the result of higher unit sales volume. International Wholesale increases were driven by 150.2% growth in our European subsidiaries, led by the United Kingdom and Germany, 50.9% growth in China, and 122.3% growth in Distributor sales. Direct-to-Consumer comparable same-store sales increased 109.2%, driven by an increase of 95.6% domestically and 165.2% internationally. Despite delayed shipments and temporary store closures, Skechers capitalized on its athletic partnerships to fuel growth.
Last month, Skechers became the official supplier of the European and U.S. Solheim Cup teams. It also added German soccer pro-Michael Ballack to its roster. Brooke Henderson earned her 10th career pro victory in April wearing Skechers GO GOLF footwear. She’s been a Skechers athlete since 2016. Skechers ran a Super Bowl ad with Tony Romo, its eighth spot for the big game. In January, Las Vegas Raiders coach Jon Gruden joined Team Skechers, as well. Earlier this week, Matt Powell, senior sports industry adviser for the NPD Group, tweeted that Nike and Adidas “ceded share in women’s sports footwear to Skechers,” among other brands.
For the fiscal year 2021, the Company believes it will achieve sales between $6.15 billion and $6.25 billion and diluted earnings per share of between $2.55 and $2.65. Further, the Company believes that for the third quarter of 2021, it will achieve sales between $1.60 billion and $1.65 billion in revenues.