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Skechers announces record annual sales

Feb 3, 2023 United States
Skechers announces record annual sales
The US-based company reported an increase in sales of 18% in 2022, year-over-year, reaching a record total of 7.4 billion US dollars, as the result of four quarterly sales records
"Starting our fourth decade of business as a 7.4 billion US dollars company that grew over 1 billion US dollars this past year is a phenomenal achievement and one that leaves me with overwhelming pride for the dedication, creativity and insight of the global Skechers team. With their flexibility and drive, along with the support of both our loyal partners and consumers, we expect to achieve continued success across all areas of the business", added Robert Greenberg, Chief Executive Officer of Skechers.


Full Year 2022 Results

Skechers' full year sales grew by 18.0%, year-over-year, reaching 7.4 billion US dollars; on a constant currency basis, the company's sales were up by 22.6%. This result reflects a 20.0% increase domestically and a 16.6% increase internationally, with wholesale sales contributing the most to the total.  

In 2022, the wholesale segment recorded a sales growth of 23.2%, amounting to 873.8 million US dollars, driven by increases in the AMER and EMEA regions of 28.7% and 33.9%, respectively, as compared to the prior year; the average selling price was up by 4.8%. Sales in the direct-to-consumer segment, throughout the same period, totalled 260.5 million US dollars, which indicates an increase of 10.2% over 2021, also driven by increases in the AMER and EMEA regions of 13.8% and 25.3%, respectively. Average selling price was up by 3.4% in this segment.

Net earnings last year amounted to 373.0 million US dollars, or diluted earnings per share of 2.38 US dollars, as compared to net earnings of 741.5 million US dollars, or earnings per share of 4.73 US dollars, registered in 2021. Adjusted earnings per share were 2.38 US dollars, on a comparable basis to diluted earnings per share of 2.59 US dollars in the previous year.  

Fourth Quarter Results

In the last quarter of 2022, Skechers' sales were up by 13.5%, reaching 1.88 billion US dollars, as compared to the same period of 2021; on a constant currency basis, sales increased by 19.1% This was the result of a 22.3% and 8.7% increase domestically and internationally, respectively led by strength in wholesale sales. But all segments registered growth: sales in the wholesale segment were up by 15.7% and sales in the direct-to-consumer segment grew by 10.8%.

Net earnings in the period totalled 75.5 million US dollars, or diluted earnings per share of 0.48 US dollars, on a comparable basis to net earnings of 402.4 million US dollars, or diluted earnings per share of 2.56 US dollars in the same quarter of 2021. Adjusted diluted earnings per share were 0.48 US dollars, as compared to prior year adjusted diluted earnings per share of 0.43 US dollars.

"Skechers' record fourth quarter and full year sales, demonstrate the strength of our brand as the comfort technology leader and the robust demand for our innovative product portfolio, which drove global growth across channels despite volatile economic conditions" added John Vandemore, Chief Financial Officer of Skechers. "We are making considerable progress on addressing the short-term challenges from elevated inventory levels and congestion in the supply chain, while staying keenly focused on executing against and investing in our long-term growth strategy", he concluded.

2023 Outlook

For fiscal 2023, Skechers is expecting to achieve sales between 7.75 billion US dollars and 8.0 billion US dollars, and diluted earnings per share of between 2.80 US dollars and 3.0 billion US dollars. For the first quarter, it is anticipating reaching sales between 1.80 billion US dollars to 1.85 billion US dollars, and diluted earnings per share of between 0.55 US dollars and 0.60 US dollars.


Image Credits: mb.com.ph


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