Skechers USA Inc. (NYSE: SKX) shares soars over 37 percent after the company posted better-than-expected third-quarter earnings.
The sport footwear reported record sales of $1.095 billion in the quarter ended September 30. Analysts polled by Thomson Reuters had estimated revenue of $1.07 billion. Excluding certain items, net income was 59 cents per share, also beating analysts’ estimates of 43 cents a share.
Skechers’ shares jumped as much as 35 percent to $32.33 per share in the early trading in New York.
The company said the better-than-expected earnings was boosted by strong sales growth in its international retail business.
David Weinberg, chief operating officer and chief financial officer stated: “The growth came across our three distribution channels—with double-digit increases in our Company-owned Skechers retail business worldwide and our international subsidiary and joint venture businesses, as well as a single-digit increase in our international distributor and domestic wholesale businesses. The strong international growth, including the continued strength in China, the resurgence of the United Kingdom and growth across all of Europe combined with our strong international retail business, resulted in international wholesale and retail representing 53 percent of our total sales in the third quarter.”
Skechers also saw a 4.4 percent increase in comparable-store sales.