Skechers USA appears to be in full rebound mode as gains from an expanding International business, strong owned-retail comps, and new brands and licensees helped push sales up 11.2% for the 2005 first quarter to $246.2 million, compared to $221.5 million in the year-ago period.

The company also got a bit of good news on the legal front Friday, announcing that a U.S. District Court had dismissed the first amended consolidated shareholders securities class action complaint filed against Skechers and certain officers and directors. The original shareholder securities class action complaint was filed against the company on March 25, 2003. The plaintiffs have thirty days from April 26, 2005 to appeal the judgment.

The International component helped gross margins show a 60 basis points improvement in the quarter to 41.1% of sales versus 40.5% of sales last year. The company also found efficiencies on the expense side as SG&A narrowed 50 basis points to 34.3% of sales. The two pieces helped push net income up nearly 46% to $10.3 million, or 25 cents per diluted share, versus net earnings of $7.0 million, or 18 cents per diluted share, in Q1 last year.

Average selling prices rose 2.5%. Pairs shipped increased 7.4%. Management said the strongest improvements came in the men’s sport line.

SKX said they had a 10% increase in the Domestic wholesale business and saw double-digit growth on the International front to just over 20% of total sales. They see International representing 25% to 30% of sales within the next three years. Biggest percentage gains came from Italy, Spain, and Benelux, but Germany and the U.K. were also characterized as having “strong increases”. SKX is “extremely pleased” with France as wholesale sales increased 14% and retail sales grew 18% for the period.

Skechers has 111 owned-retail stores in six countries. They plan to open their second Canadian store in Toronto next month. Total Domestic retail stores totaled 112 at period-end, with 7 to 10 more planned for 2005.

Inventory at quarter-end was up 17.0% to $130.7 million from $111.7 million at the same time last year.

Skechers pointed to improvement in the order book and reactions to the product line as reasons to provide second quarter EPS guidance in the range of 21 cents to 26 cents per diluted share on $245 million to $255 million in sales, including a double-digit gain in the Domestic wholesale business.