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Skechers celebrates record $8bn sales milestone in FY23

Skechers has announced record sales of $8bn for the year (FY23), a 7.5% year-on-year increase as global awareness and brand reach expands.

Operating income at Skechers for the year ending 31 December (FY23) increased to $784.8m compared with $546.7m while net income increased to $545.8m from $373m a year earlier.

Wholesale sales decreased $127.6m, or 2.8%, due to a decrease in AMER of 10.6%, partially offset by increases in APAC of 12.6% and EMEA of 0.1%. Wholesale volume decreased 8.7% and average selling price increased 6.3%.

Direct to Consumer sales grew $683.4m, or 24.3%, due to increases in AMER of 21.5%, APAC of 22.0%, and EMEA of 49.2%. Direct to Consumer volume increased 19.6% and average selling price increased 4.0%.

Gross margin was 51.9%, an increase of 470 basis points, primarily driven by higher average selling prices and a higher proportion of Direct to Consumer sales.

“Skechers’ new annual sales record of $8bn was the result of the broad acceptance for our products worldwide, our loyal and growing consumer base, the cultivated relationships with our partner network, and our determined and dedicated team,” said Robert Greenberg, CEO.

“As always, product and marketing are paramount to our success, with comfort, quality, style and innovation inspiring every collection. Throughout the year, we delivered fresh styles of our proven Skechers Hands-Free Slip-ins, understanding that consumers of all ages appreciate the comfort and convenience of this technology.

“With over 5,000 Skechers retail stores and becoming a Fortune 500 company, our brand's global reach continues to expand. Our product initiatives and diverse line-up of athletes and ambassadors offers numerous opportunities to tell the Skechers story, and further grow our business globally. Given our momentum, we are confident that 2024 will be another successful year for the company.”

For the fiscal year 2024, the company believes it will achieve sales between $8.60bn and $8.80bn and diluted earnings per share of between $3.65 and $3.85. The company believes that for the first quarter of 2024, it will achieve sales between $2.175bn and $2.225bn and diluted earnings per share of between $1.05 and $1.10. Further, the company believes that total capital expenditures will be between $350m and $400m in 2024, inclusive of construction of the company's second distribution centre in China.