Skechers Steps Up Its Game: Fool by Numbers

On Oct. 25, Skechers USA (NYSE: SKX  ) released third-quarter earnings for the period ended Sept 30.

• Revenues increased 21.4% because of growth across all channels of distribution, which include domestic, international, wholesale, retail, and e-commerce.
• Skechers had a record-breaking quarter, surpassing $300 million in sales, mainly because of their infrastructure and marketing tactics.
• Comparable-store sales were in the double digits, boosted by strong back-to-school sales.

(Figures in millions, except per-share data)

Income Statement Highlights

	Avg. Est.	Q3 2006	Q3 2005	Change
Sales	$317	$331	$273	21.4%
Net Profit	--	$22	$13	75.7%
EPS	$0.40	$0.49	$0.30	63.3%
Diluted Shares	--	46	45	3%

Get back to basics with a look at the income statement.

Margin Checkup

	Q3 2006	Q3 2005	Change*
Gross Margin	44.18%	42.32%	1.86
Operating Margin	10.41%	7.86%	2.55
Net Margin	6.70%	4.63%	2.07

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q3 2006	Q3 2005	Change
Cash + ST Invest.	$205	$183	12.2%
Accounts Rec.	$172	$130	32.2%
Inventory	$177	$132	34.0%

Liabilities	Q3 2006	Q3 2005	Change
Accounts Payable	$141	$92	53.7%
Long-Term Debt	$17	$18	(4.1%)

Learn the ways of the balance sheet.

Cash Flow Highlights

We will, we will stomp you -- for not including a cash flow statement.

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Related Companies:

• Nike (NYSE: NKE  )
• Timberland (NYSE: TBL  )
• Wolverine Worldwide (NYSE: WWW  )

For more Foolish footwear reading:

• Skechers' Sketchy Second Quarter
• Fool on Call: Nike's Got Ups
• Will Nike Get Thrashed?

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.