World Footwear

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SKECHERS with 21% growth on net sales

May 9, 2014 United States
SKECHERS with 21% growth on net sales
The American company registered net sales of 546.5 million USD in the first quarter of 2014, growing 21.0% from 451.6 million USD in the same period in 2013. Net earnings for the first quarter of 2014 reached 31 million USD up 363.5% compared to 6.7 million USD last year
“The demand for SKECHERS footwear from both our customers and consumers has been above and beyond our expectations. The result was net sales of over 546 million USD, a 21% increase over last year’s first quarter and a first quarter record as well as the second highest quarterly revenues in the company’s 22-year history,” commented David Weinberg, chief operating officer and chief financial officer. "The sales results are attributable to double-digit increases in our domestic and international wholesale business, as well as increases in our worldwide company-owned retail business, which achieved a 5.6% comparable quarter net sales increase. With multiple product success stories in our lifestyle, performance and kids’ footwear, the positive reaction to our current products resulted in a gross margin of 44.0% and an operating margin of 8.8%”, concluded Weinberg.

This good performance in the first quarter of the new financial year follows an excellent set of results announced earlier in the year for financial year 2013. The American company registered net sales of 1 846 million USD in 2013, up 18.3% from 1 560 million USD in 2012. Domestic wholesale represented 43.4% of total net sales and reached 802 million USD, up 22.9% from previous year. Retail sales followed with 538 million USD (representing 29.1% of total company’s net sales); international wholesale represented 25.9% (479 million USD). Ecommerce sales represented only 1.5% of total net sales, however this was the segment with the biggest growth rate (24.2%). Net earnings for the year reached 54.8 million USD, 476% up from 9.5 million USD in 2012. After some ups and downs (caused by “overall lower demand for toning footwear and a weak U.S. retail environment”) in the last 4 years, the company’s net earnings were in 2013 (54.8 million USD) at 2009 level (54.7 million USD).

David Weinberg also commented this set of results from the company’s performance in 2013: “The momentum we experienced in the first nine months of 2013 continued in the fourth quarter, which resulted in the second highest fourth quarter sales in the Company’s history and a 13.9% net sales increase for the period on top of last year’s fourth quarter net sales gain of 39.7% (…) The growth is related to the strong product successes we are experiencing across our men’s, women’s, and kids’ categories”.

Robert Greenberg, SKECHERS chief executive officer, complemented the analysis: “Skechers has always been a product focused company, but in 2013, we challenged ourselves to deliver key styles from every one of our divisions. This more diversified product approach resulted in strong sales across our distribution channels. (…) We were also honoured as Brand of the Year for Skechers GO from Footwear News, and received the 2013 Excellence in Design Awards for Running and Kids footwear from Footwear Plus—two significant recognitions from leading trade magazines. The momentum we have been experiencing in the United States reached multiple markets around the world, resulting in sales improvements in Europe, Asia, the Middle East, Australia and South America (...) Our focus is to continue to deliver innovative, in-demand footwear that consumers around the globe will seek out, and support our product with impactful marketing. We are confident we can achieve this efficiently and continue to profitably grow our business through 2014.”

Confidence is high for the new fiscal year: “We believe 2013, with our second highest annual net sales ever, was the beginning of a growth trend for SKECHERS that we see continuing through 2014 .... We are committed to maintaining this positive trend through product development, growth in our emerging and established international markets, deeper penetration in key domestic accounts, and the planned opening of 60 to 70 new company-owned stores this year. With 372.0 million USD in cash as of year-end, in-line inventory and strong double-digit backlogs, we believe the momentum we experienced since the end of 2012 will continue through 2014, and we are comfortable with the consensus numbers currently reported for the first quarter and full year”, concluded Weinberg.

SKECHERS USA, Inc., an American company based in Manhattan Beach (California), designs, develops and markets styles for men, women and children. The company offers two distinct categories: a lifestyle and a performance divisions. Through licensing agreements, the company also offers branded apparel, bags, watches, eyewear and additional merchandise. SKECHERS footwear is available in the United States via department and specialty stores, company-owned SKECHERS retail stores and its e-commerce website, and in over 100 countries and territories through the company’s international network of subsidiaries in Canada, Brazil, Chile, Japan, and across Europe, as well as through joint ventures in Asia and distributors around the world.

For more information about SKECHERS USA, Inc., please visit the company's website.

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