Skechers ( NYSE: SKX ) stock edged 3.5% higher postmarket on Tuesday after the footwear maker's Q2 results topped Street estimates .
Q2 adj. EPS was $0.69, handily beating consensus estimate of $0.54.
Sales rose 12.7% Y/Y to $1.87B, which SKX said was its highest ever quarterly number, led by increased sales in the Americas and EMEA. On a constant currency basis, sales grew 16.4%.
"Growth was driven by sales increases of 21% in the Americas and 8% in EMEA. In APAC, where sales were flat due to COVID-restrictions in China, we saw strong growth in most other markets, particularly in India, South Korea and Malaysia," said SKX COO David Weinberg.
Gross margin was 48.1%, down 330 bps, driven by higher per unit freight costs and partially offset by average selling price increases.
Inventory was $1.56B, up 6.3% from Dec. 31, reflecting growth in the Americas.
SKX expects to report Q3 EPS of $0.70-$0.75. Q3 sales are projected to be $1.80B-$1.85B vs. consensus estimate of $1.81B.
SKX expects 2022 EPS of $2.60-$2.70. 2022 sales are projected to be $7.2B-$7.4B vs. consensus estimate of $7.31B.
Shares of SKX have fallen ~20% YTD.
For further details see:
Skechers stock gains postmarket on Q2 earnings beat