The US shoe retailer Skechers USA Inc. achieved new record sales in the second quarter of the 2022 financial year. Although earnings fell short of the corresponding year-earlier level, the numbers released on Tuesday evening beat market expectations. The revenue increase is “a significant achievement, particularly given the macroeconomic headwinds, supply chain issues and Covid-related restrictions in China during the reporting period,” Chief Operating Officer (COO) David Weinberg said in a statement.
Revenue for the second quarter was $1.87 billion (EUR 1.84 billion), up 12.4 percent (+16.4 percent at constant currency) over the prior-year period. The home market in particular developed strongly: In America, sales rose by a total of 20.9 percent to USD 1.03 billion.
In the EMEA region, which includes Europe, the Middle East and Africa, sales grew by 7.6 percent to US$374.5 million, but in the Asia-Pacific region it was only slightly higher at US$459.4 million above the previous year’s level (+0.2 percent). The reason for this was the burden on business in China due to the temporarily tightened corona protection measures: Revenues there fell by 19.6 percent to USD 254.9 million. However, other markets in the region, notably India, South Korea and Malaysia, have seen “strong growth,” the company said.
Earnings were impacted by higher freight costs, increased selling and administrative expenses, and negative currency effects. Therefore, the operating profit shrank by 23.4 percent to 154.2 million US dollars. Net income for the quarter was $90.4 million, down 34.2 percent year-on-year.
In the entire first half of the year, Skechers was able to increase its sales by 19.1 percent (currency-adjusted +22.1 percent) to 3.69 billion US dollars. Net income fell 10.3 percent to $211.6 million.