SKECHERS’ third quarter sales slump 25.7 per cent

SKECHERS’ third quarter sales fell 25.7 per cent to $412.2 million as a result of what chief operating officer David Weinberg described as a combination of comparisons against a record third quarter of 2010, the decline in higher priced toning footwear and lower than expected sales across many of the brand’s footwear lines.

Gross profit for the third quarter of this year was $175.2 million, compared to $252.7 million for the corresponding period in 2010.

Gross profit for the first nine months of 2011 was $511.1 million, compared to $727.7 million in the first nine months of 2010, while net sales were $1.323 billion, compared to $1.552 billion in the first nine months of 2010.

Says Weinberg: “We believe we will continue to face challenges in the fourth quarter of 2011, but we are pleased with the strides we have made to better position our business for 2012.

“These include significantly reducing our selling expenses, consolidating our North American distribution facilities into one building and reducing excess inventory.

“We are also evaluating our overhead to better control spending while seeking new expansion opportunities in product development, as well as international and retail sales.

“As we look forward to 2012, we believe SKECHERS continues to be a relevant brand globally and there are many opportunities to grow our business in the future.”

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