Skechers attributes Q3 profit jump to innovation, quality offering

US footwear brand, Skechers saw a “record” 7.8% increase in revenue to $2.02bn for the third quarter ended 30 September 2023, as a result of consistent growth in both domestic and international markets.

Isatou Ndure October 27 2023

An 8.6% rise in international sales together with a 6.5% increase in domestic sales fuelled third-quarter sales growth at Skechers.

Wholesale sales decreased by 1.4% across channels, with Europe, Middle-East, and Africa (EMEA) and the Americas experiencing declines, partially offset by a drop in Asia Pacific (APAC) of 7.1%.

Skechers also notes a wholesale volume decrease of 10.8%, while the average selling price saw a rise of 10.3%.

The drop in wholesale figures was offset by an increase of 23.8% in direct-to-consumer sales, which included the Americas, where it increased by 17.3%, APAC with a 24.2% rise, and EMEA with a substantial 60.8% surge.

The volume of direct-to-consumer transactions grew by 18.8%, accompanied by a 4.3% increase in the average selling price.

“Our record third-quarter sales were the result of our continued innovation and determination to deliver comfort, style and quality in every pair,” said Robert Greenberg, CEO of Skechers.

“We believe our constant innovation to meet the needs of consumers from all walks of life—including professional athletes, and our impactful marketing will drive our success for years to come.”

Key results from Skechers third quarter sales:

  • Net sales of $2.02bn, compared to $1.87bn the year before
  • Operating income increased to $213.2m vs $130m a year earlier
  • Net income also jumped 69% to $145m

In its trading update, the US brand said gross margin was 52.9%, an increase of 590 base points. Earnings from operations increased $83.2m to $213.2m, resulting in an operating margin of 10.5%.

Net earnings stood at $145.4m and diluted earnings per share were 93 cents, compared to a prior year’s net earnings of $85.9m and diluted earnings per share of 55 cents.

Skechers fourth-quarter outlook

For the fourth quarter of 2023, the company believes it will achieve sales between $1.91bn and $2.01bn and diluted earnings per share of between $0.40 and $0.50. For the full year 2023, sales are expected to be between $7.95bn and $8.05bn and diluted earnings per share of between $3.33 and $3.43.

David Weinberg, chief operating officer of Skechers added: “As we continue to focus on growing our international business, enhancing our Direct-to-Consumer presence and expanding our product offering, we remain confident in the strength of our brand and executing Skechers’ long-term growth strategy.”

In April, Skechers signed an agreement with its Scandinavian distributor, Sports Connection, to set up a wholly-owned subsidiary in a bid to boost its growth within Europe.

Uncover your next opportunity with expert reports

Steer your business strategy with key data and insights from our latest market research reports and company profiles. Not ready to buy? Start small by downloading a sample report first.

Newsletters by sectors

close

Sign up to the newsletter: In Brief

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Thank you for subscribing

View all newsletters from across the GlobalData Media network.

close