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UK 'resurgence' boosts sales at Skechers

US footwear brand Skechers has posted record sales gains for its third quarter, partly boosted by a “resurgence” in the UK.

Net sales for the third quarter ending 30 September stood at $1.1bn (£835m), up 16.2% up on the same period last year.

The increase in retail sales came despite temporary store closures in Texas and Florida, and in Puerto Rico as a result of hurricanes.

Gross profit jumped by 21% to $520m (£395m) compared with the same period in 2016, while its earnings were up 12.7% to $116.5m (£88m).

However, selling expenses rose to $89.6m (£68m) from $67.8m (£51.5m), because of increased advertising costs and expenses from selling commissions from its joint venture in South Korea.

Administrative expenses also grew to $316.9m from $261.8m (£241m from £199m) during the quarter, after it opened 67 stores, and invested in its joint venture and subsidiary businesses.

Sales for the nine months leading to the same date came to $3.2bn (£2.4bn), with gross profit standing at $1.5bn (£1.1bn) and earnings at $327.2m (£248m). Net earnings were $245.8m (£187m).

Chief operating and financial officer David Weinberg said the company’s retail business enjoyed double-digit sales growth overall, while its international distribution and domestic wholesale operations posted single-digit increases.

Weinberg added: “The strong international growth, including the continued strength in China, the resurgence of the UK and growth across all of Europe combined with our strong international retail business, resulted in international wholesale and retail representing 53% of our total sales in the third quarter.”

Skechers predicted net sales of $860-$885m (£653-£672m) for the fourth quarter. Capital expenditures are expected to total $20m-$25m (£15-£19m), which comprise corporate office upgrades, 12 to 15 shop openings and store remodellings.

Skechers is sold in 160 territories worldwide, through department and specialty stores, 2,438 standalone and third-party retail stores, and its websites.

It manages its international business through a network of global distributors, joint venture partners in Asia and the Middle East, and wholly owned subsidiaries in Canada, Japan, Europe and Latin America.

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