In the second quarter, the Company’s effective income tax rate was 21.3%. Diluted earnings per share include an unfavorable impact of $0.11 due to declines in foreign exchange rates, primarily in EMEA. Net earnings were $90.4 million and diluted earnings per share were $0.58, a decrease of 34.1% over the prior year. General and administrative expenses increased $65.9 million, or 12.9%, primarily due to volume-driven increases in labor and warehouse and distribution expenses, as well as higher rent.Įarnings from operations decreased $47.0 million, or 23.4%, to $154.2 million. Selling expenses increased $25.1 million, or 17.8%, due to higher global demand creation expenditures. Operating expenses increased $91.0 million, or 14.0%, and as a percentage of sales, increased 50 basis points to 39.8% from 39.3% in the prior year. Gross margin was 48.1%, a decrease of 330 basis points, primarily driven by higher per unit freight costs partially offset by average selling price increases. Direct-to-Consumer average selling price increased 5.3% and volume was essentially flat. Wholesale volume increased 14.8% and average selling price increased 3.1%.ĭirect-to-Consumer sales growth of $29.8 million, or 4.3%, was led by increases in AMER of 3.7%, EMEA of 13.5%, and APAC of 2.7%. Wholesale sales growth of $176.1 million, or 18.3%, was led by increases in AMER of 34.9%. On a constant currency basis, sales increased 16.4%. All segments experienced growth, with Wholesale increasing 18.3% and Direct-to-Consumer increasing 4.3%. Second quarter sales increased 12.4% as a result of a 15.4% increase in domestic sales and a 10.0% increase in international sales, primarily driven by strength in wholesale sales. As a company, we are determined to outdo ourselves and reach further heights as we strive to meet our customers’ needs." We are in a unique position as a brand that delivers on comfort technology, style, innovation and quality with a global reach that includes 4,355 Skechers stores. This, our 30 th year in business, is our strongest year yet from a sales, marketing and product perspective. We also signed several new ambassadors-specific to Europe and Asia, as well as a rising Latin music artist and a global pop sensation, all to further strengthen brand awareness in key markets. Further, we elevated our performance game with the launch of Skechers Viper Court, a collection designed specifically for the fastest growing sport in America, pickleball, and saw major championship wins on the golf course with Brooke Henderson at this past weekend’s Amundi Evian Championship in France and Matt Fitzpatrick at the U.S. "In the second quarter, we delivered hands-free comfort footwear to a world now desiring more ease in their lives, expanded our Skechers Arch Fit offering, and designed more fashion-focused styles as comfort at work and play is the new norm. "2022 is shaping up to be another remarkable year for Skechers with two consecutive record sales quarters, the result of our talented team’s passion, determination and execution to evolve our product offering, inform the world of our exceptional comfort technologies, and effectively navigate the supply chain constraints," began Robert Greenberg, Chief Executive Officer of Skechers. While we remain cautious given the challenges across the globe, we believe our comfort technology footwear, impactful marketing and the strength of our brand will drive continued sales growth in the back half of the year." During the quarter, we focused on delivering our in-demand footwear direct to consumers and through our wholesale partners globally. In APAC, where sales were flat due to COVID-related restrictions in China, we saw strong growth in most other markets, particularly in India, South Korea and Malaysia.
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Growth was driven by sales increases of 21% in the Americas and 8% in EMEA. "The growth was the result of increases in sales of 15% in our domestic and 10% in our international businesses. "Skechers achieved a new quarterly sales record of $1.87 billion, a significant accomplishment especially given the macroeconomic headwinds, supply chain issues and COVID-related restrictions in China during the period," said David Weinberg, Chief Operating Officer of Skechers. Repurchased $24.2 million of common stock Record quarterly sales of $1.87 billion, a year-over-year increase of 12.4% ("Skechers" or the "Company") (NYSE:SKX), The Comfort Technology Company™ and a global footwear leader, today announced financial results for the second quarter ended June 30, 2022. LOS ANGELES, July 26, 2022-( BUSINESS WIRE)-SKECHERS U.S.A., Inc.