Shares for Skechers USA Inc. are surging in after-hours trading on Thursday after the shoemaker posted fourth-quarter sales that blew past expectations.
The Manhattan Beach, Calif.-based firm’s stock was up nearly 8% to $40.98 as of 4:30 p.m. ET. In its financial report for the period ended Dec. 31, Skechers logged revenues that rose 23.1% to $1.33 billion, compared with analysts’ predictions of $1.25 billion. Earnings per share were in line with forecasts, growing 25.8% to 39 cents, on profits of $59.5 million.
The company attributed the growth in revenues to a 31.2% gain in its international sales and 13% improvement in domestic revenues. Same-store sales increased 9.9%, while Skechers’ direct-to-consumer business climbed 19.4% and wholesale advanced 10.4%.
“Skechers’ record-setting fourth quarter and full year results reflect the strength of our brand, product offerings and global execution capabilities,” said CFO John Vandemore. “We continue to make investments globally to build on those strengths and to support our strategy to expand internationally and to deepen our direct to consumer relationships in store and online.”
For the full year, Skechers sales jumped 12.5% to $5.2 billion as its international business recorded a 20.2% gain and revenues for its domestic arm inched up 3.3%.
In tandem with its report, the performance and lifestyle footwear firm joined the growing list of companies expressing caution over the deadly coronavirus outbreak in China, which has led to retail store and factory closures as well as limited transportation within the country.
“We are deeply concerned by the health crisis in China, and for the well-being of our employees, partners, vendors and consumers in the region,” said CEO Robert Greenberg. “We continue to monitor this situation and its potential disruption to our global business. The Skechers brand is strong in China, and we remain confident in our long-term prospects in the country.”
For the first quarter of 2020, Skechers anticipates sales in the range of $1.4 billion to $1.425 billion and EPS of $0.70 to $0.75, incorporating “an initial estimate of the impact to the company of current events in China” that includes “a significant number” of temporary store closures and “below average” comparable store sales.
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