Skechers USA saw its shares rise by as much as 8 percent after posting profits that beat estimates. Although the footwear maker's net income fell by 1.7 percent from the year-ago quarter to $90.7 million, this was significantly higher than the level anticipated by Wall Street. Investors also welcomed the company's strong fourth quarter guidance.
Sales performed well, too, going up by 7.5 percent to $1,176 million, thanks to increases of 11.8 percent in the international wholesale business and a 10.6 percent in its company-owned stores around the world. On a constant currency basis, the overall sales growth in the quarter was 8.5 percent. Comparable store sales at directly operated stores advanced by 1.9 percent, with growth of 3.0 percent in the U.S. offset by a decrease of 0.8 percent internationally.
The number of pairs shipped increased by 1.5 percent in the quarter, while average selling prices declined by 4.4 percent to an implied $23.41 per pair.
The management said the resurgence of retro looks and the market's good response to its D'Lites line of chunky sneakers allowed the company to broaden its distribution and marketing to reach millennial consumers. In particular, D'Lites have seen great success over the last two years in certain parts of Asia, and the style is now in demand across North America and Europe, and poised for growth in South America, India and the Middle East.
