Footwear and apparel manufacturer Skechers USA Inc. reported second-quarter sales that beat Wall Street expectations.
The Manhattan Beach-based company said revenue for the quarter totaled $729.5 million, a decrease of $529.1 million, or 42%, from the same period a year ago but $69.5 million above analysts’ estimate of $660 million.
The company posted a net loss of $68.1 million, or 44 cents per share, a 189.8% decrease during the period. Analysts had anticipated a loss of 63 cents per share.
The company’s international business was down 37.8%, partially offset by an 11.5% increase in sales in China. Domestic sales decreased 47.3% for the quarter. Skechers’ direct-to-consumer business was down 47.1%, despite a 428.2% increase in its ecommerce business.
“Despite the challenges of the second quarter, we are optimistic about the early stage recovery we are seeing in much of our business, including a return to growth in China and the explosive growth of our ecommerce channel,” Chief Financial Officer John Vandemore said in a statement. “We ended the second quarter in a position of significant financial strength, having grown our cash balances sequentially by more than $175 million through prudent inventory, working capital and operating expense management.”
Mattel Inc. Reports Mixed Second-Quarter Results
Mattel Inc. also reported second-quarter results on Wednesday. The El Segundo-based toy manufacturer posted a $109.2 million net loss, or 31 cents per share, on $732.1 million in revenue, declines of 14.9% and 15%, respectively, from the year-earlier period. Analysts had anticipated a net loss of about 33 cents per share and revenue of about $676 million.
“We entered the second quarter with extensive retail closures and distribution challenges and had to absorb a full quarter of Covid-19 impact, but we demonstrated our execution capabilities and the resilience of our brands,” Chief Executive Ynon Kreiz said in a statement. “While revenues were down, they exceeded our expectations, particularly in North America, Barbie and games, where we saw sales increases.”
Mattel’s net sales in North America hit $432.9 million, a 2% increase from same quarter sales in 2019. International contributed $271.1 million, a 33% decrease. The company’s Barbie division posted $199.3 million in revenue for the quarter, a 7% uptick from the year-earlier period.
Mattel also announced that Diana Ferguson, who serves as the chief financial officer of Cleveland Avenue LLC, a Chicago-based venture capital firm, has been appointed to the company’s Board of Directors.
“Diana is a highly experienced executive who brings a proven track record of corporate financial management and strategic planning to our Board,” Kreiz said.
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- Mattel Expects Tough Times Will Continue
- Mattel Beats 2020 Earnings Expectations
- Skechers, Mattel Top Wall Street Projections for First Quarter
- Mattel Blows Past Earnings Expectations
- Are Mattel’s Cuts Working?
- Mattel Plans to Cut 2,200 Jobs
- Mattel Makes Several Strides in Its Post-Barbie Strategy
- Mattel Rises on Steep Profit Increase