Skechers Surges on Record $2.35 Billion Quarterly Sales

Skechers continues to outdo itself. 

The California-based sneaker company announced record third-quarter earnings Wednesday, reporting $2.35 billion in sales, nearly 16% higher than the prior year.

Wall Street analysts had an average revenue estimate of $2.3 billion for the quarter.

Skechers’ strong quarter comes as the sneaker company continues to increase its popularity both internationally and domestically; the company saw a 16% increase in sales internationally and 15% rise domestically. Shares were up more than 9% in after-hours trading.

“Skechers’ significant growth in the third quarter can be attributed to offering the right product at the right price and ensuring availability at locations where consumers want to shop – whether it’s in our own direct-to-consumer channels or with our network of key retailers,” CEO Robert Greenberg said in the release statement.

Sales grew across all regions: 30% in Europe, driven by double-digit growth across all countries, 14% in the Americas, and 7% in Asia Pacific with double-digit increases in many countries, the company said.

In February, Skechers announced it crossed the 5,000 store mark across 120 countries with aims to open at least another 140 by the end of the year. Company president Michael Greenberg said the company has a goal of reaching 10,000 stores in the coming years. 

The company came out with its first basketball shoe two years ago, and came into the NBA season with four new athlete sponsors, led by Sixers center Joel Embiid and Timberwolves forward Julius Randle. After establishing a strong base in the comfort, slip-ons, running, and children’s markets, the company is looking to do the same in the performance space, traditionally dominated by Nike and Adidas. 

“We are in the early stages of team sports with the global rollout of Skechers court, football [soccer], basketball and cleated styles with a growing roster of Olympians and elite athletes competing in our footwear,” Greenberg said. “We believe there are significant opportunities to build on our technical performance business.”

Performance shoes are “the final frontier,” Greg Smith, Skechers VP of product development and merchandising, recently told Front Office Sports. “It’s the one piece that has been missing from [the] Skechers portfolio.”