Skechers reported a 144 percent jump in net income for the third quarter to $28.8 million as revenues increased by 20 percent to $515.7 million and gross margins improved by 0.9 percentage points to 44.6 percent.
Strong demand was registered for the company's children's shoes and its Skechers Go and Relaxed Fit lines. The momentum is expected to continue, as orders were up by 19.7 percent at the end of the quarter.
Sales grew by 30.1 percent in the U.S. at the wholesale level, with an increase in the average selling price per pair of 3.9 percent coming on top of 25.2 volume deliveries. While sales of men's shoes rose by a single digit, women's, children's and work shoes enjoyed double-digit growth during the quarter.
Elsewhere, the sales increase was limited to 5.8 percent as a 16.1 percent increase at company-owned subsidiaries and joint ventures around the world was partly offset by a 17.3 percent drop in sales to distributors. Venezuela, Columbia, Egypt and Kenya were particularly hit.
Germany enjoyed a rebound and is growing strongly now. Brazil and France, which had not performed well recently, posted double-digit growth along with the company's operations in Chile, Canada and three other regions. There was no improvement in sales in Italy or Spain, but orders were up in both countries.
Sales declined in Japan, where Skechers took over the distribution recently, but the country is expected to contribute to the general growth in the next year or two. Sales grew by a triple digit for Skechers' joint venture in China. The joint ventures in Hong Kong, Malaysia and Singapore delivered double-digit improvements.
On a global basis, Skechers' own stores recorded a sales increase of 19.8 percent as compared to one year ago, with increases of 17.3 percent on a comparable store basis in the U.S. and of 14.4 percent abroad. The first Skechers stores in Brazil and Turkey opened during the quarter.