The following is a summary of the Skechers U.S.A., Inc. (SKX) Q1 2024 Earnings Call Transcript:
Financial Performance:
Skechers achieved a quarterly sales record of $2.25 billion, marking a 12.5% increase from last year.
The company noted gross margins and operating margins of 52.5% and 13.3% respectively.
With an adjusted diluted earnings per share of $1.33, the boosted sales were supported by international sales growth of 15% and domestic sales growth of 7.8%.
Skechers' cash balance increased to $1.25 billion by quarter's end, up $322.2 million compared to the same period in the prior year.
The growth in gross margin is expected to continue, potentially increasing by 100 to 150 basis points.
Skechers predicts an improved operating margin for the year, with outlooks to return to double digits.
Business Progress:
Skechers attributed their growth to product innovation, expansion into new collections, strong global demand, and strategic partnerships, such as with Snoop Dogg.
They launched new product types, such as Skechers Hands-Free Slip-ins, and opened 52 new company-owned and 95 third-party stores.
The company plans on further investing in logistics, with a new distribution center in Panama and an expanded facility in China.
Further investment in an accelerated implementation of an Enterprise Resource Planning (ERP) system is underway to support the company's future growth.
Skechers is also expanding its sporting category sponsorships, including Major League Baseball (MLB) players and the Mumbai Indians cricket team.
Promising Q2 growth is expected, evidenced by accelerated wholesale orders.
Skechers also plans to continue investing in innovative product features and expanding their brand reach in different design categories.
More details: Skechers USA IR
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