Dive Brief:
- Skechers increased net earnings to $160.4 million during 2023’s first quarter and logged a record $2 billion in revenue for the period.
- In a statement, David Weinberg, chief operating officer, attributed a $182 million sales increase — 10% year-on-year — to a 24.5% growth in its direct-to-consumer business.
- Internationally, the California-based company saw a 21.1% increase for sales outside the U.S., including 3.3% growth in China, which was tempered by a 4.8% decrease domestically. On a constant currency basis, sales increased 13.3%.
Dive Insight:
Weinberg said the company’s record sales, expanded gross margins of 48.9% and “meaningfully improved inventory levels” were an indication of customer satisfaction with the products, combined with a successful marketing strategy. He added that the company plans to expand its global distribution capabilities.
Ad campaigns such as this year’s Super Bowl ad featuring Snoop Dogg and Martha Stewart were part of what CEO Robert Greenberg said was a strategy to “ensure Skechers remains top of mind.”
He added that the brand planned to expand “opportunities for consumers to experience Skechers globally” via 4,500-plus retail locations, multiple e-commerce sites and its network of third party retailers.
“This year will bring challenges as certain markets wrestle with inventory backlogs,” said Greenberg. “But I continue to believe that the trust and respect I have for this organization and the trust the consumers place in Skechers will result in another strong year for the brand.”
Weinberg said the company planned to hit $10 billion in annual sales by 2026.
The brand released a new slew of celebrity collaborations this year, including one that built on its Super Bowl ad, and recently announced that Doja Cat would become its first artist-in-residence.
Yet the company has also been plagued by its share of challenges, including recent litigation it settled with luxury house Hermès over a patent dispute.
