E-commerce revenue plunged 20% and total sales dropped 14%.
For the fourth quarter in a row, web sales for casual shoe manufacturer Skechers USA Inc. took a significant step down in Q2.
For the second quarter ending June 30, 2011, Skechers, No. 336 in Internet Retailer’s Top 500 Guide, posted:
- Web sales of $5.5 million, a 20.2% drop from $6.9 million in Q2 2010.
- Total sales dropped 14.0% to $434.4 million from $504.9 million in the second quarter of last year.
- A $29.9 million net loss, compared with $40.2 million in net earnings in Q2 2010.
Internet Retailer calculates that web sales comprised 1.3% of total revenue in the second quarter, compared with 1.4% in Q2 2010.
Skechers attributed its results to difficult year-over-year comparisons, as Q2 of last year was strong, as well as its decision to eliminate its inventory of toning shoes, footwear designed to exercise the wearer’s leg muscles. David Weinberg, chief financial and operating officer, says the retailer sold 2 million pairs of original Shape-ups toning shoes for a loss of $21 million. “We feel this was a big step in reaching our goals for the year, which include right-sizing our inventory, bringing new product to market, and getting our overhead in line with anticipated sales for 2012."
For the six months ending June 30, 2011, Skechers also reported:
- E-commerce sales of $11.0 million, a 27.6% decline from $15.2 million in the first half of last year.
- Total revenue dropped to $910.6 million, an 8.7% decreased compared with $997.6 million in the same period the year prior.
- A net loss of $18.1 million, compared with net earnings of $96.5 million in the first half of 2010.
Internet Retailer calculates that the web comprised 1.2% of total sales in the first half of the year, compared with 1.5% last year.
"We believe that while the second half of 2011 will pose more challenges, we also see growth opportunities in both the international and retail businesses,” says CEO Robert Greenberg. “With our holiday 2011 and spring 2012 product being reviewed by our customers this month during prelines, we believe we are well-positioned for the future."