World Footwear

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A strong 2023 for Skechers

Feb 5, 2024 United States
A strong 2023 for Skechers
The US-based footwear company has achieved record annual sales of 8.0 billion USD in 2023, up by 7.5% year-over-year, driven by a strong performance in the direct-to-consumer channel
“Skechers’ new annual sales record of 8.00 billion US dollars was the result of the broad acceptance for our products worldwide, our loyal and growing consumer base, the cultivated relationships with our partner network, and our determined and dedicated team”, stated Robert Greenberg, Chief Executive Officer of Skechers.


Full Year Results

The company’s fiscal 2023 sales grew by 7.5%, reaching 8.00 billion US dollars, on a comparable basis to 2022, reflecting a 13.3% increase internationally and a 0.8% decrease domestically.

The wholesale channel recorded a sales decline of 2.8% in these twelve months to 4.5 billion US dollars, due to a decrease of 10.6% in the Americas region, partially offset by increases in the APAC region of 12.6% and the EMEA region of 0.1%, as compared to the same period of the previous year.

The direct-to-consumer channel contributed 3.5 billion US dollars to Skechers’ total sales last year, growing by 24.3%, on a comparable basis to 2022, due to increases in sales of 21.5% in the Americas region, 22.0% in the APAC region and 49.2% in the EMEA region.

Skechers’ gross margin improved by 470 basis points year-over-year to 51.9% in 2023, as a result of “higher average selling prices and a higher proportion of direct-to-consumer sales”.

Last year, the US-based footwear company posted net earnings of 545.8 million US dollars, or diluted earnings per share of 3.49 US dollars, as compared to 373.2 million US dollars, or diluted earnings per share of 2.38 US dollars, on a comparable basis to fiscal 2022.


Fourth Quarter Results

In the fourth quarter of fiscal 2023, the company reached “record” sales of 1.96 billion US dollars, up by 4.4% on a comparable basis to the same period of the previous year, as a result of sales growth of 6.9% internationally and a 0.3% growth domestically.

The company's wholesale sales decreased by 8.3% year-over-year in the last three months of the year to 962.6 million US dollars, including decreases of 19.5% in the EMEA region and 7.4% in the Americas region, “partially offset by an increase in APAC of 7.1%”.  At the same time, direct-to-consumer sales rose by 20.3% year-over-year to 829.6 million US dollars, with sales growing by 21.2% in the APAC region, 14.6% in the Americas region and 53.1% in the EMEA region.

“Our Wholesale business experienced a decrease in sales of 8%, as several retailers continued to conservatively manage their inventory levels. However, we are optimistic that this behaviour is changing based upon early reads from January shipments and positive order trends for the first half of the year”, explained David Weinberg, Chief Operating Officer of Skechers.

Skechers’ fourth quarter net earnings totalled 87.2 million US dollars, or diluted earnings per share of 0.56 US dollars, as compared to 75.5 million US dollars, or diluted earnings per share of 0.48 US dollars, in the same period of 2022.

Outlook

For fiscal 2024, the company expects to achieve sales between 8.60 US dollars and 8.80 US dollars and diluted earnings per share of between 3.65 US dollars and 3.85 US dollars. For the first quarter, it anticipates sales between 2.17 billion US dollars and 2.22 billion US dollars and diluted earnings per share of between 1.05 billion US dollars and 1.10 billion US dollars.


Image Credits: theharrispoll.com

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