Skechers USA Inc. (SKX) reported stellar third-quarter results, with record sales and earnings driven by strong demand for its innovative comfort footwear. The company's shares soared after-hours, reflecting investors' optimism about its growth prospects.

For the quarter ended September 30, 2024, Skechers reported revenue of $2.35 billion, a 15.9% increase from the prior-year period, beating analysts' estimates of $2.32 billion. The company's earnings per share of $1.26 surpassed expectations of $1.15, representing a 35.5% year-over-year growth.

Skechers' impressive performance can be attributed to the widespread popularity of its diverse line of comfortable and innovative footwear, which offers a unique value proposition to consumers. The company's wholesale sales grew by 20.6%, driven by double-digit increases across key markets, including the Americas, Europe, Middle East, and Africa (EMEA), and Asia Pacific. Direct-to-consumer sales also advanced by 9.6%, led by robust growth in EMEA and Asia Pacific.

David Weinberg, Chief Operating Officer of Skechers, attributed the record-breaking sales to the growing acceptance of the company's comfort technology products by both partners and consumers. "Consumers now seek Skechers' comfort features knowing these styles offer more value," he said, highlighting the company's focus on delivering innovative and comfort-driven designs across its product portfolio.

Looking ahead, Skechers raised its full-year guidance, expecting sales between $8.925 billion and $8.975 billion, with earnings per share in the range of $4.20 to $4.25. The company's optimism stems from its belief in significant growth opportunities in its technical performance business, which includes technical running, golf, and pickleball footwear, as well as the potential expansion into new categories like team sports.