Skechers (SKX) 4Q15 Results: Strong Product Demand and Impactful Marketing

Executive Summary

• Skechers reported 4Q15 EPS of $0.19 versus the consensus estimate of $0.20.
• Total revenue was $722.7 million, an increase of 26.8% year over year, versus expectations of $693.5 million. Domestic wholesale sales increased at a high-single-digit rate, while international wholesale sales and retail segment sales both increased at a double-digit rate. Growth was driven by sales across men’s, women’s and kids’ categories.
• Management provided 1Q16 guidance for EPS of $0.50–$0.55 versus consensus of $0.52. Total revenue is expected to be $885–$920 million versus consensus of $895.7 million. According to the company, 1Q16 started off strong; January sales were up 35% and the first week of February was strong, too. Company-owned retail stores are on track to achieve mid- to high-single-digit comps in January.