The company plans to use the funds to expand internationally.
The shoe manufacturer’s total sales dropped 3.4%.
E-commerce sales at shoe manufacturer Skechers USA Inc. took a major step down in Q1.
- E-commerce sales dropped to $5.5 million from $8.2 million in Q1 2010, a 33% decrease.
- Total sales decreased by 3.4% to $476.2 million from $492.8 million.
- Net earnings were $11.8 million, compared with $56.3 million in Q1 2010.
Internet Retailer calculates that web sales comprised 1.2% of total sales in Q1 2011, versus 1.7% in the same quarter in the prior year.
Lower sales of the company’s toning shoes compared with record sales in Q1 of 2010 and overall weak domestic wholesale and retail sales contributed to the Q1 2011 sales declines, says David Weinberg, chief financial officer.
“Our first quarter 2011 sales and margins are in line with our expectations given the current retail environment, changes in trends and our excess inventory position, which we are continuing to work through,” Weinberg says. “We believe both our sales and margins will improve in the second half of the year as we continue to realize the benefits of reducing older inventory and delivering exciting new styles.”
The retailer says it plans to open 25 to 30 stores in 2011.