Shares for Skechers USA Inc. are higher in after-hours trading following the release of its better-than-expected financial report, which showed signs that a sales recovery is on the horizon for the brand.
For the second quarter ended June 3, the Manhattan Beach, Calif.-based company posted a net loss of $68.1 million and diluted loss per share of 44 cents, compared with the prior year’s profits of $75.2 million and earnings per share of 49 cents. Revenues decreased 42% to $729.5 million.
Analysts had forecasted a loss of 66 cents per share and revenues of $659.7 million. Skechers’ stock subsequently rose nearly 8% to $33.50 as of 4:30 p.m. ET.
With nearly all of its locations around the world shuttered at some point during the quarter due to government-mandated closures, Skechers saw a 428.2% surge in its e-commerce business. (Its direct-to-consumer business as a whole, however, fell 47.1%.)
“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 e-commerce channel,” CFO John Vandemore said in a statement.
COO David Weinberg added, “While every country’s recovery has been unique, we began to see a similar recovery trend, first reflected in China and now extending into other markets globally including Australia, Germany, South Korea and Taiwan.”