Skechers U.S.A., Inc. (SKX) announced the first-quarter financial results after which the SKX stock price saw a surge of 7.62% to reach $47.9 a share in the late hours of Thursday on April 22, 2021. SKX was green in the previous trading session and closed with a 0.77% gain. Let’s discuss the earnings results in detail.
SKX stock First Quarter Results:
SKX stock generated $1.43 billion in revenue from sales in the first quarter of 2021. International sales and domestic sales of the Skechers increase by 20.2% and 8.5% respectively which resulted in the overall increase in the sales up to 15% in the first quarter ended March 31, 2021. The increase in international sales is due to the increase in the wholesales by 23.8% while domestic sales increase is due to direct to consumer as well as eCommerce growth of 143%.
An increase of margin in both international wholesale and direct-to-consumer segments resulted in an overall increase of 350 basis points in the gross margin to 47.6%. The increase of margin in different segments is attributed to the increased selling price across all channels as well as growth in eCommerce sales.
SKX stock recorded $157.7 million earnings from the operation which represents the $112.9 million or 252.0% increase over the same period of the prior year.Net earnings for SKX were $98.6 million and $0.63 diluted earnings per share were recorded in the first quarter of 2021.
Balance Sheet of SKX stock.
As of March 31, 2020, SKX stock had cash, cash equivalent, and investments of $1.51 billion which represent a decrease of $65.1 million or 4.1% as compared to December 31, 2020. Total inventory increased from $50 million to $1.07 billion in the first three months of 2021 representing the growth of the international wholesale segment.
Outlook of SKX stock:
Skechers projected the sales to be between $5.8 billion and $5.9 billion and diluted earnings per share to be between $1.80 and $2.00 for the fiscal year 2021. Sales for the second quarter of 2021 are estimated in the range of $1.45 billion and $1.50 billion and diluted earnings per share in the range of $0.40 and $0.50.
SKX stock has captivated the attention of investors after announcing the strong financial results of the first quarter of 2021. The success of the SKX stock is due to its continued and effective marketing efforts in the United States and the globe. SKX stock is growing day by day and can be a good bet for investors in the long run.