World Footwear

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Skechers announces record year

Feb 11, 2019 United States
Skechers announces record year
The US-based footwear giant announced a new fourth quarter 2018 sales record of 1.08 billion US dollars. The full year results also brought a record of sales (4.64 billion US dollars)
2018 was a year of record sales - our first fourth quarter of over a billion dollars and, combined with three previous record quarters, a new annual sales record of 4.64 billion US dollars”, commented David Weinberg, Chief Operating Officer of Skechers, adding: “For the quarter, this growth was fuelled by double-digit sales increases in each of our international businesses - company-owned retail, distributor, subsidiary and joint venture, and by single digit sales increases in both our domestic wholesale and retail businesses. For the year, we achieved double-digit sales increases across our international portfolio and single-digit sales increases in our total domestic business. In 2018, we also shipped a record number of pairs from our distribution centers across South America, North America, Japan and Europe, which is a testament to the strength of our global operations and the breadth of our international sales, which represented 54.0% of our total business for the year.”

Weinberg continued: “Our international business represents our most significant growth opportunity. To maximize on that opportunity in two key areas, we recently completed the transition of our India joint venture to a wholly owned subsidiary and reached an agreement in principle to establish a joint venture in Mexico with our current distribution partner. We expect these strategic investments to be accretive to our diluted earnings per share in 2019. Additionally, we continue to invest in infrastructure - we broke ground on our new distribution center in China in the fourth quarter as well as on the expansion of our global headquarters in Manhattan Beach in January. We remain focused on efficiently and profitably growing our business for the future.”


Fourth Quarter

Skechers sales grew by 11.4% as a result of an 18.4% increase in the company’s international wholesale business, a 7.5% increase in its company-owned global retail business, and a 4.8% increase in its domestic wholesale business. Skecher’s international business grew by 17.9% and its domestic business grew by 4.1%. Fourth quarter comparable same store sales in company-owned retail stores, including ecommerce, increased by 1.1%, which included an increase of 3.0% in its international stores and 0.4% in the United States. Net earnings totalled 47.4 million US dollars and diluted earnings per share were 0.31 US dollars.

Full Year

Sales grew by 11.5% as a result of an 18.8% increase in the company’s international wholesale business, a 12.0% increase in its company-owned global retail business, and a 0.8% increase in its domestic wholesale business. Skechers international business increased by 19.2% and its domestic business increased by 3.5%. For the full year, comparable same store sales in company-owned retail stores, including ecommerce, increased by 9.2%, including an increase of 16.7% in its international stores, and an increase of 6.7% in the United States. Net earnings reached 301.0 million US dollars in the year and diluted earnings per share were 1.92 US dollars.

Photo by Helloquence on Unsplash

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