Skechers Jumps as Customers Can’t Take off Casual Footwear By Investing.com

Investing.com – Skechers (NYSE:) shares traded nearly 7% higher Friday as the company’s fourth-quarter numbers suggested sustained demand for casual and comfortable shoes.

The company reported each quarter in 2021, riding on the pandemic-created shift to casual footwear that people wore both at home and outside.

“Fourth quarter growth was driven by increases of 30% in both our international wholesale and direct-to-consumer businesses, and 5% in domestic wholesale,” Chief Operating Officer David Weinberg said in a company statement.

Improvements in the domestic wholesale business were the result of increase in volumes and higher average selling prices, and especially notable given the supply chain issues that have slowed the footwear industry.

Internationally, United Kingdom, India and Spain were among markets that recorded double-digit growth. China grew in high single-digits. Direct-to-consumer business benefited from reduced promotions and higher prices.

Overall, October-December sales rose more than 24% year-on-year to $1.65 billion. Gross margin fell a tad to 48.6% on higher freight costs. Operating and general expenses rose due to higher marketing costs, bigger compensation to staff, increased volume-driven warehouse and distribution expenses, and the settlement of multiple legal matters.

Adjusted profit per share was 43 cents and beat estimates.

The company is forecasting current-year sales of $7 billion-$7.2 billion, up from $6.3 billion in 2021. Diluted profit per share for the year is seen at $2.80 at midpoint of its guidance range.

Current-quarter diluted EPS is seen between 70 cents and 75 cents on sales of $1.67 billion-$1.72 billion.