Dive Brief:
- Skechers reported unaudited second quarter sales of $2.44 billion, according to an earnings release Friday, marking a 13.1% year-over-year increase as the footwear company plans to take the company private.
- The company’s wholesale segment grew 15% for the quarter to $1.3 billion, while its DTC revenue grew 11% to $1.1 billion.
- By region, Skechers saw the biggest increase in Europe, the Middle East and Africa with sales growing 48.5%. Sales in the Asia Pacific region grew 5.5%, while China sales decreased 8.2%. Sales in the Americas increased 1.1%.
Dive Insight:
Skechers Q2 earnings report is the company’s first since announcing plans to go private through a $9.4 billion deal with 3G Capital. The recent earnings release differs from the company’s previous reports because the presentation didn’t involve a conference call with executives and investors or other detailed commentary.
Friday’s results also didn’t include a projected financial outlook for the rest of the year. Skechers initially withdrew its outlook prior to the 3G deal in Q1, citing “macroeconomic uncertainty stemming from global trade policies.”
The merger with 3G is expected to close in the third quarter.
While the Federal Trade Commission granted antitrust clearance for the deal in June, the transaction has faced holdups, including a shareholder lawsuit that claimed Skechers executives didn’t give adequate information about the proposed merger.
On Aug. 5, Skechers filed a Schedule 14C with the Securities and Exchange Commission that detailed the planned acquisition to shareholders. On Aug. 8, the shareholder group filed a motion to dismiss the case without prejudice.
Skechers also is facing a new lawsuit from Kizik Designs that claims Skechers violated Kizik’s patents for its slip-in styles.
