SKECHERS USA, Inc. reported net sales for the third quarter ended Sept. 30 were $405.4 million compared to $403.2 million in the third quarter of 2008, and net operating income was $32.4 million, compared to $24.7 million in the third quarter of 2008.
For the nine months ended September 30, 2009, net sales were $1.048 billion compared to net sales of $1.143 billion in the first nine months of 2008. Net earnings for the first nine months were $26.8 million, compared to net earnings of $75.8 million in the first nine months of 2008. Net earnings per diluted share in the first nine months of 2009 were 57 cents per share on 46.6 million diluted shares outstanding, versus $1.62 per share on 46.8 million diluted shares outstanding for the same period last year.
“Our third quarter sales reached a new record high and we saw our operating income increase by over 31% in spite of the continued soft retail environment,” began David Weinberg, chief operating officer. “Our improved performance was driven by sales growth in the high single digits in our international business and double digit improvements in our retail channel. Our margins also improved meaningfully in the third quarter due to less close outs and clean, in-line inventory.”
Gross profit for the third quarter of 2009 was $183.7 million, compared to $171.5 million in the third quarter of 2008. Gross margin was 45.3% for the third quarter of 2009, compared to 42.5% in the third quarter of 2008. Gross profit for the first nine months of 2009 was $431.8 million, or 41.2% of net sales, versus $500.9 million, or 43.8% of net sales, in the first nine months of 2008.
Robert Greenberg, SKECHERS chief executive officer, commented: “The reaction by consumers to our Fall product has been exceptional. We are hearing extremely positive reports and strong feedback from both our domestic and international accounts, and from retail stores across the U.S. and abroad. Our SKECHERS product is fresh, on-target and affordable. We continue to support our brands with multiple print and television campaigns for Fall, including a new kids spot for Luminators, and we have great in-store presence with displays that draw attention to our product.
“Since the start of the year, we have carefully managed our expenses and inventory, improved our cash and short-term investments to $276 million $5.86 per share, and introduced successful new products for men, women and children backed by effective marketing. We believe our ample liquidity, clean inventory and fresh product position us well and will allow us to capitalize on new growth opportunities as they arise,” Mr. Weinberg continued. “While the global economy continues to show signs of weakness, we believe our business is back on track based on our record third quarter sales combined with many positive indicators including healthy domestic and international backlogs, positive retail comps, and strong sell-throughs.