Shoe maker Skechers USA Inc. (SKX), Wednesday reported a swing to profit in the first quarter from a loss last year, with a surge in sales as demand for its shoes increased. Both earnings and revenues for the quarter came in ahead of analysts' estimates.
Manhattan Beach, California-based Skechers reported a first-quarter profit of $6.6 million or $0.13 per share, compared to a loss of $3.6 million or $0.07 per share last year.
Skechers earnings for the quarter were negatively impacted by one-time items of $0.08 per share.
On average, four analysts polled by Thomson Reuters expected earnings of $0.19 per share for the quarter. Analysts' estimates typically exclude one-time items.
First-quarter sales surged 28.6 percent to $451.6 million from $351.3 million last year. Analysts had a consensus revenue estimate of $443.21 million for the quarter.
First-quarter gross margin, or percentage of sales left after subtracting production costs, dropped to 42.7 percent from 44.3 percent last year.
Financial Chief David Weinberg said domestic wholesale channel sales jumped 47 percent, while comparable sales of domestic and international Skechers stores climbed 12.2 percent.
"Further, the sales growth was the result of double digit improvements in each of our business channels: domestic wholesale, international wholesale, company-owned retail stores, and e-commerce," Weinberg added.
SKX closed Wednesday's regular trade at $21.41, down $0.29 or 1.34%, on the NYSE. In after hours, the stock gained $0.65 or 3.04%.
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