Net income for Skechers jumped 23% to $121,223,000 in the first quarter on 27 percent revenue growth to a record $1,819,594,000 versus $1,434,455,000 for the period ended March 31. Skechers’ top and bottom-line gains were accomplished despite a challenging environment in the APAC region and persistent higher unit freight costs. No sales orders were pulled forward into Q1 from other periods, management confirmed to analysts.

Wholesale revenues rose 33 percent to $308.2 million, led by a 41.6 percent increase in the Americas and 42 percent gain in the EMEA. Wholesale unit volume rose 22.7 percent with management telling analysts that the company had a record March in receiving and processing orders for its wholesale partners that was impossible to accomplish earlier due to supply chain issues. Direct-To-Consumer sales rose 16 percent in Q1 to $76.9 million, bolstered by a 157.3 percent increase in the EMEA region, and a 15.1 percent increase in average selling price. DTC sales were 11.2 percent higher in the Americas and up 8.5 percent in APAC.

Regionally, the U.S. accounted for 75 percent of the Americas’ 31 percent sales increase to $946.9 million. The EMEA, augmented by markets rebounding from the pandemic in the year-ago quarter, produced a 49 percent gain in Q1 sales to $441.2 million. APAC region sales rose 4 percent to $431.5 million, led by 9 percent growth in China but negatively impacted by pandemic issues in adjacent markets.

Maintaining a stance where growth is expected to continue in the EMEA and Americas but difficulties in APAC should continue for an unspecified period, Skechers has adopted a more conservative outlook for Q2, predicting a sales range of $1.75-1.8 billion and EPS range of $0.50-.55. But the company has slightly raised its full-year outlook from the $7.0-7.2 billion in total revenues forecast in early February to $7.2-7.4 billion with full year EPS now pegged at $2.75-2.95 versus $2.70-2.90 earlier.

Senior management rejected any suggestions that inflationary concerns may be impacting the brand’s customers currently, suggesting the company is witnessing “great sell-throughs” at its own and third-party retailers in the U.S.

“We haven’t seen any slowdown,” commented CFO John Vandemore.

‍In other news at Skechers:

The brand continues to invest in the sport of pickleball. In addition to recently being announced as Official Footwear Sponsor of the 2022 Minto US Open Pickleball Championships, Skechers has signed two of the top-ranked pickleball players in the world — Tyson McGuffin and Catherine Parenteau. The duo, who were already wearing Skechers apparel and footwear on the court, will now do so as official brand ambassadors. The first pickleball footwear shoe from Skechers, the Viper Court, will be available at retail in May.