Skechers USA Inc., the lifestyle and footwear company based in California, is currently examining various strategic options for its business in Asia. One particular possibility being considered is an initial public offering (IPO) on the Hong Kong stock exchange. To explore these options, the company has engaged in preliminary discussions with advisors to evaluate the best course of action for its Asian operations. If Skechers decides to proceed with an IPO in Hong Kong, it has the potential to raise approximately $1.5 billion. This move may also involve Skechers buying out its current joint venture partners in the region, with existing joint ventures including Skechers China, established in partnership with Luen Thai Enterprises in 2007, as well as units in South Korea and Southeast Asia.

At this stage, the discussions are still in the early phases, and it is important to note that Skechers has the flexibility to pursue alternative strategic plans. In the third quarter of 2021, the company reported sales of $1.55 billion, marking a growth of 19.2% compared to the same period the previous year. However, these figures fell slightly short of the company’s initial expectations, which ranged between $1.60 billion and $1.65 billion. Skechers experienced growth in its international wholesale segment, particularly in China with a 10.0% increase, and in India where sales surged by a substantial 67.5%.

In 2020, Skechers achieved annual revenues of $4.6 billion, with nearly 60% of this revenue originating from sales outside of the United States. China alone accounted for approximately $924.5 million, around 20% of the company’s total sales that year. Operating in more than 170 countries globally, Skechers boasts an extensive network of over 4,000 stores, including company-operated locations and third-party-owned stores.

The potential IPO in Hong Kong not only highlights Skechers’ ambitious growth plans, but also serves as a strategic move to further establish its presence in the Asian market. By evaluating different options and carefully considering the best path forward, Skechers aims to optimize its operations and continue its successful trajectory in the rapidly expanding Asian market.

Useful links:
Official Website of Skechers
Hong Kong Stock Exchange