Skechers broke out Friday and was one of the top gainers in the S&P MidCap 400 after clearing estimates for Q1 results late Thursday and providing an upbeat forecast. Other footwear stocks rose modestly Friday.
Manhattan Beach, Calif.-based Skechers reported a 30.4% increase in earnings to $1.33 per share, beating FactSet estimates of $1.10 per share. Revenue jumped 12.5% to a quarterly record of $2.25 billion. Analysts expected $2.2 billion in sales.
The earnings results marked five straight quarters of double-digit growth.
Wholesale sales increased 9.8% for the quarter to $1.42 billion, while direct-to-consumer sales leapt 17.3% to $829.9 million. International sales represented 65% of total sales for the quarter.
The company's inventory decreased 10.8% from the end of 2023, to $1.36 billion.
Skechers repurchased $60 million worth of shares during the quarter.
Outlook
Skechers guided second-quarter earnings to between 85 cents and 90 cents per share, down from 97 cents per share last year. The shoemaker expects rising Q2 sales to range from $2.175 and $2.225 billion, compared to $2.01 billion for the same period in 2023. The earnings outlook was short of FactSet predictions of 99 cents per share, but revenue was in-line with estimates of $2.22 billion.
Skechers forecasts 2024 earnings of between $3.95 and $4.10 per share, from its prior guidance of $3.65 to $3.85 per share. The new outlook came in ahead of analyst views of a 19% jump to $4.04 per share. Full-year sales were guided to between $8.725 billion and $8.875 billion. FactSet expects 2024 sales to increase 10.6% to $8.85 billion.
Skechers Stock
SKX stock leapt 11.2% Friday to break out above a 65.17 buy point for a flat base.
Shares vaulted back above their 50-day moving average on the move to a new all-time high of 65.41 at the close.
Skechers stock has consolidated most of this year, but is up about 5% in 2024 after Friday's gain.
On Holding climbed 2.7% during Friday trade. Crocs rose 1.5% with its first-quarter results due May 7. Hoka maker Deckers Outdoor surged 3.3%.
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