What happened
Shares of Skechers (SKX 2.81%) were up 12.8% as of 2:30 p.m. EDT Friday after the footwear company announced strong second-quarter 2019 results.
More specifically, Skechers' quarterly revenue climbed 10.9% year over year to $1.259 billion, helped by a 4.9% increase in comparable sales. That translated to net income of $75.2 million, or $0.49 per share, up 69% from $0.29 per share in the same year-ago period. Both the top and bottom lines arrived well above the high ends of Skechers' guidance ranges, which called for revenue of $1.200 billion to $1.225 billion, and earnings per share of $0.30 to $0.35.
IMAGE SOURCE: SKECHERS.
So what
Chief Operating Officer David Weinberg called Skechers' record second-quarter performance "a testament to the demand and strength for our brand and products."
International sales were a bright spot for Skechers, climbing 19.8% to comprise nearly 56% of its total revenue -- and effectively propping up its more modest 1.5% domestic growth.
"We're continuing to strategically view our business with a global lens as trends are traveling faster," stated Skechers CEO Robert Greenberg. "Specifically, many of our key product styles are introduced at virtually the same time around the world, with nuances in certain markets, giving us the ability to replicate our success around the globe."
Now what
For the third quarter of 2019, Skechers sees revenue climbing to a range of $1.325 billion to $1.350 billion -- up 13.3% from $1.18 billion in the same year-ago period -- with earnings per share of $0.65 to $0.70. Here again, most analysts were modeling third-quarter earnings near the bottom end of that range on lower revenue of $1.31 billion.
There was little not to like about this straightforward quarterly beat and encouraging forward outlook. And Skechers stock is responding in kind.
