World Footwear

Companies

Skechers sales rise

Oct 29, 2021 United States
Skechers sales rise
The US-based footwear giant reported a third quarter sales increase of 19.2%, reaching 1.55 billion US dollars, driven by improvements in domestic and international businesses
“Skechers achieved a new third quarter sales record surpassing $1.5 billion for the period, a remarkable achievement given the ongoing supply chain disruptions. The record quarter was the result of double-digit improvements in both our domestic and international businesses compared to the third quarter 2020, reflecting the relevancy of our product globally and a normalizing retail environment. Traffic increased in our Skechers stores, and we achieved growth of 44.1% and significantly higher gross margins in our Direct-to-Consumer business. Our Domestic and International Wholesale businesses both grew over 10%, an achievement given the global logistical challenges. The increases in International Wholesale came largely from double-digit increases in our Distributor sales, and strong performance in markets like China and India”, commented David Weinberg, Chief Operating Officer of Skechers.

Third Quarter Results

In the third quarter of 2021, total sales increased by 19.2%, as a result of an increase by 20.1% in domestic sales and by 18.6% in international sales, on a comparable basis to the same period last year. On a constant currency basis, the company’s total sales increased by 17.1%.

In the three months ended on the 30th of September, sales grew across all segments, as compared to similar period of 2020. Domestic wholesale rose by 10.1% due to higher unit sales volumes. International wholesale increased by 10.6%, driven by an increase of 61.9% in distributor sales, by 10% in China and by 67.5% in India, partially offset by an 11% decline in European subsidiaries. Direct-to-Consumer sales also grew across all channels, led by domestic and international retail stores, achieving a double-digit increase in average selling price from higher prices and lower promotions. Direct-to-Consumer comparable same-store sales increased by 31.0%, propelled by a rise of 33.7% domestically and 25.1% internationally.

Gross margin increased by 150 basis points to 49.6% in the third quarter of the current fiscal year. Net earnings in the period corresponded to 103.1 million US dollars.

Year to Date Results

In the first nine months of 2021, sales increased by 41.7%, on a comparable basis to the same period last year, amounting to 4.62 billion US dollars. This reflects a growth of 42.4% in domestic sales and 41.2% in international sales, especially due to international wholesale growth. On a constant currency basis, the company’s total sales increased by 37.4%.

Gross margin increased by 250 basis points to 49.6% in the current fiscal year. Net earnings corresponded to 339.1 million US dollars.


Outlook

“As we look to the fourth quarter and into the first half of 2022, we believe supply chain constraints will remain a challenge, although we are beginning to see progress in key global ports, especially in Europe and other international markets”, added David Weinberg, Chief Operating Officer of Skechers.

For the fiscal year of 2021, Skechers said to be expecting sales between 6.15 billion US dollars and 6.20 billion US dollars. Regarding the fourth quarter of 2021, the company projects to achieve sales between 1.51 billion US dollars and 1.56 billion US dollars.


Image Credits: Fashion Network UK


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