Skechers almost doubled its net earnings for 2005 from $23,600,000 to $44,700,000. The results stem from a gross margin that rose by 150 basis points to 41.8 percent and an increase in total sales of 9.4 percent to $1.006 billion. The company attributed the improved performance to growth in its fashion and street lines, a rise in its own retail and wholesale business at home and outside of the USA as well as better management of expenses and operations.
In the 4th quarter, net earnings came ahead of previous projections, rising by 177 percent to $5,901,000 as compared to the year-ago period. The gross margin was up by 190 basis points to 41.6 percent of total sales, which rose by 8.2 percent to $223.5 million.
During the quarter the company introduced its new line of Kitson footwear, a collection that is named after a posh Hollywood boutique. It also launched the Hurricane by 310, a sneaker endorsed by The Game, a hip-hop artist.
The management is predicting increases of 10-14 percent in sales and 16-36 percent in profits for the first quarter of 2006.