Skechers posts record-breaking quarter on strong wholesale and DTC, withdraws guidance on tariff woes
The Los Angeles-based company said first quarter sales grew 7.1% to $2.41 billion, coinciding with a 7.2% increase internationally and a 6.9% increase domestically.
By channel, wholesale sales grew 7.8%, including increases in EMEA, up 13%, and the Americas, up 7.3%, partially offset by a decrease in APAC, down 0.6%. Likewise, direct-to-consumer sales grew 6%, on increases in the Americas, up 9.8% and EMEA, which surged 21.7%. The DTC growth was partially offset by a 4.4% decrease in APAC.
Profits dipped slightly, with net earnings attributable to Skechers were $202.4 million and diluted earnings per share were $1.34, compared with prior year net earnings of $206.6 million and diluted earnings per share of $1.33.
"For the first quarter, we delivered record quarterly sales of $2.41 billion, reflecting strong global demand across both our wholesale and direct-to-consumer segments with international sales representing 65% of our business," said David Weinberg, chief operating officer of Skechers.
"Sales by region increased 14% in EMEA and 8% in the Americas. In APAC, sales decreased 3%; however, when excluding China, sales increased 12%. We believe Skechers has significant growth opportunities in China, and we will continue to invest in product, marketing and infrastructure to expand and support our presence. At the core of our success is our diverse offering of comfort technology products available at accessible prices across a variety of distribution channels. We remain focused on innovation within our established and successful lifestyle collections, growing our high-performance footwear offering, and investing in brand demand creation as we continue to drive future growth globally."
Looking ahead, the sneaker company withdrew its prior annual 2025 guidance, citing "macroeconomic uncertainty stemming from global trade policies."
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