Skechers, the footwear brand headquartered in Los Angeles, has reported impressive financial results for the third quarter of this year. The company achieved a record-breaking revenue of $2.02 billion, marking a 7.8% increase in sales. This growth can be attributed to the brand’s strong performance in both domestic and international markets. Notably, Skechers experienced an 8.6% rise in international sales and a 6.5% increase in domestic sales.

However, the company observed a decline of 1.4% in wholesale sales, primarily due to decreases in Europe, the Middle East, and Africa (EMEA) by 8.3%, as well as in the Americas by 0.5%. On a positive note, the Asia Pacific (APAC) region saw an increase of 7.1%. While the volume of wholesale sales dropped by 10.8%, the average selling price rose by 10.3%.

Despite the decrease in wholesale sales, Skechers experienced a remarkable growth rate of 23.8% in direct-to-consumer sales. This includes a 17.3% increase in the Americas, a 24.2% surge in APAC, and an astounding 60.8% expansion in EMEA. The volume of direct-to-consumer sales also rose by 18.8%, while the average selling price increased by 4.3%. For the quarter, the company posted net earnings of $145.4 million, with diluted earnings per share of $0.93, compared to $85.9 million and $0.55 per share in the previous year.

David Weinberg, the chief operating officer of Skechers, attributes the brand’s strong sales performance to robust demand. He highlighted growth in all regions, particularly in the United States, where direct-to-consumer sales contributed to a 7% increase. The Asia Pacific region also experienced significant growth, with China alone growing at a rate of 18%. Weinberg further mentioned that the company has significantly reduced its inventory levels, and the gross margin stands at a solid 52.9% thanks to favorable pricing, higher direct-to-consumer sales, and lower unit costs. Skechers remains confident in the strength of its brand and its long-term growth strategy, which focuses on expanding its international business, enhancing its direct-to-consumer presence, and expanding its product offering.

In line with its efforts to diversify its product offerings and expand its brand reach, Skechers recently unveiled its basketball collection. The launch features endorsements from NBA players Julius Randle and Terance Mann, aiming to attract basketball enthusiasts and further establish the brand’s presence within the athletic footwear market.

Useful links:
1. Official Skechers Website
2. Skechers Performance Collection