Skechers (Cage) Hit A Record High In The Third Quarter, Soaring Share Prices

According to the world clothing and shoe net, the second largest brand Skechers of American sports shoes has become the biggest winner of footwear brand in the third quarter, driven by international business.

According to the latest data released by Skechers, its third quarter sales surged 16.7% to 1 billion 100 million US dollars compared with the same period last year, and the quarterly revenue exceeded US $1 billion again. Net profit surged 42% to 92 million 300 thousand US dollars, and gross profit margin increased from 45.6% to 47.5% last year, which is higher than that expected by Wall Street analysts.

In the third quarter, Skechers opened 2428 sales outlets worldwide.

International business has been the main source of revenue for Skechers group. During this period, Skechers international wholesale business grew by 26% over the same period last year, contributing 53% of the company's third quarter revenue.

The wholesale business in the United States increased by 1.4%, and the global direct retail business increased by 17%, and the total sales volume increased by 4.4%.

Robert Greenberg, chief executive, said in a statement after the earnings announcement that the US and global businesses are promoting Skechers growth and continuing to provide consumers with a variety of styles and comfort.

Sales recorded a three consecutive quarterly record and set a record of 2016, which proves the strength of the brand.

David Weinberg, chief financial officer and chief operating officer, said that $1 billion 100 million was the company's single season high, which was $22 million higher than the first quarter of 2017. The cumulative sales in January and September also hit a record high in the same period.

The growth comes from three aspects. The number of retail businesses, subsidiaries and joint ventures in the world has increased by double digits, while the number of international distributors and domestic wholesale businesses has increased.

In addition, the international market, including China, Britain and Europe, is growing strongly.

It is noteworthy that

Skechers has entered the Chinese market for more than 10 years with its partners in the Chinese market. After getting rid of its early positioning errors and location problems, China has entered a rapid growth state in the 2014 year, and now has contributed nearly 1/4 of the global sales.

In 2016, the sales volume of Skechers in mainland China was 6 billion 500 million yuan, an increase of 89% over the same period last year, while the same store sales increased by 25%, almost 8 times the growth of the same store in the world.

Chen Weili, chief executive of Skechers, revealed that net profit reached 1 billion 500 million last year.

The overseas market of the group is becoming bigger and bigger. In 2016, Skechers established a distribution center in Belgium by establishing a joint venture with its South Korean partners, and opened a new store in Madrid, Spain.

Robert Greenberg said earlier that along with

Many overseas markets such as Canada, Chile, China and India continue to gain positive market reaction. In the future, brands will open more stores around the world.

Despite the recent temporary closes in Texas and Florida, the growth of all retail businesses, including 9.5% of domestic wholesale business, and 3.1% of domestic retail business year-on-year.

As a result of recent hurricanes, Puerto Rico will continue to close shop plans.

Chen Weili, chief executive of Skechers, said that 90% of Skechers's stores in China are profitable. The brand currently has 2260 stores in China and is expected to reach 4000 by the end of 2018.

The Skechers share price rose by 23.10% in October 19th to $29.58 per share in the US time, and its market value is about $3 billion 800 million.

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