Skechers USA, Inc. posted its tenth consecutive quarter of year-over-year top-line increases in the second quarter. The company received support in the form of double-digit sales increases in several of its fashion lines, including Michelle K, Rhino Red, and 310 Motoring, as well as double-digit growth in both domestic and international retail. Net sales for the second quarter rose 10.7% to $292.2 million from $263.9 million during the year-ago quarter. Selling price per pair increased more than 4%, while pairs shipped were up by 4.5%.
Total retail sales were up over 19%, benefiting from a double-digit comps increase as well as the addition of 11 new stores in the running year. On the domestic side, the division posted its 12th consecutive quarter of double-digit year-on-year sales increases.
The international subsidiary business was up “approximately 9%” with the BeNeLux region and Canada posting the strongest improvements. France was up in the “lower to moderate single-digits,” with management saying that the region still had “issues.” On the international distributor front, sales were up 8% over last years second quarter. All regions were up, except for Japan.
Gross margin increased 240 basis points to 44.7% of sales from 42.3% in the second quarter of 2005.
Net earnings for the quarter were $17.6 million versus net earnings of $15.9 million in the second quarter of 2005. Net earnings per diluted share were 40 cents, up from 38 cents for the second quarter of 2005.
Looking at the third quarter of 2006, the company is seeing double-digit comp store sales, strong sell-throughs, and an increase in year-over-year backlog from 19% as of March 31, 2006 to 34% as of June 30, 2006. The company now expects net sales for the third quarter to be in the range of $310 million to $320 million and net earnings per diluted share of 37 cents to 42 cents.
