Skechers USA Inc. reported that second quarter revenues inched up 0.6% to $354.6 million from $352.2 million a year ago.  Net earnings dipped 2% to $14.6 million or 31 cents a share, from $14.9 million,  or 32 cents, a year ago. In late April, Skechers predicted Q2 revenues ranging from $350 million to $365 million and earnings per share in the range of 30 cents to 38 cents.


 


Gross profit for the second quarter of 2008 was $157.2 million compared to $152.0 million in the second quarter of 2007. Gross margin was 44.3% for the second quarter of 2008 compared to 43.2% in the second quarter of 2007.


 

“Our record second quarter revenues of $354 million are in line with our expectations and the guidance we gave a few months ago,” stated Fred Schneider, chief financial officer of Skechers. “We are especially pleased with our continued strong international sales, and believe that we will continue to see growth in key areas around the world. While we did not experience domestic wholesale growth in the quarter, Skechers wholesale sales in the U.S. were slightly better than anticipated, which we feel is meaningful given the very soft retail environment. Our company-owned retail business has also been impacted by the weak domestic economy, with sales essentially flat on an increased store base. Our profitability is also in line with our expectations, and our balance sheet remains extremely strong, allowing us to continue to execute our growth plans both domestically and internationally.”

 


Management said they were “satisfied” with their performance for the quarter, but were “cautiously optimistic about the second half of the year,”  suggesting the third quarter will be stronger than this past quarter. 


 

Domestic backlogs were up in mid-single-digits and international backlogs were up in double-digits.

 


Skechers now expects net sales for the third quarter of 2008 to be in the range of $425 million to $440 million and net earnings per diluted share of 57 cents to 65 cents.  In the year-ago period, Skechers earned 53 cents a share.