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Skechers reports record £1.62 billion sales in Q3

Tom Shearsmith
26 October 2022

Global footwear business Skechers has today announced financial results for the third quarter period ending 30 September 2022, reporting record sales of £1.62 billion ($1.88 billion).

Third quarter sales increased 20.5% as a result of a 14.9% increase domestically and a 24.6% increase internationally, primarily driven by strength in its wholesale sales. All segments experienced growth, with wholesale increasing 26.2% and DTC increasing 11.9%.

Wholesale sales growth of £213.2 million ($247.1 million), or 26.2%, was led by increases in EMEA of 58.8% and AMER of 18.1%. Wholesale volume increased 25.1% and average selling price increased 1.4%.

DTC sales growth of £62.8 million ($72.8 million), or 11.9%, was led by increases in AMER of 13.8% and APAC of 10.0%. DTC volume increased 11.1% and average selling price increased 0.6%.

Gross margin was 47.1%, a decrease of 280 basis points, primarily the result of increased freight and logistics costs, and a higher proportion of distributor sales, partially offset by average selling price increases.

Year-to-date sales increased 19.6%, reflecting a 19.3% increase domestically and a 19.8% increase internationally with the largest contribution derived from wholesale sales. Both segments experienced increases, with wholesale increasing 25.6% and DTC increasing 10.0%.

John Vandemore, Chief Financial Officer of Skechers, said: “Skechers' record third quarter sales reflect double-digit growth across our segments and in most countries. These results are a testament to the demand for our comfort technology products. Despite multiple macroeconomic headwinds, from foreign exchange rates to supply chain challenges and ongoing COVID-related lockdowns, we remain focused on our long-term growth strategy. We are encouraged that demand remains strong and as these headwinds moderate, we expect to see continued revenue growth and improved operating leverage."

Robert Greenberg, Chief Executive Officer of Skechers, commented: “We recognised a consumer’s need for comfort years ago and are a unique brand known globally for our comfort technology products. Our innovation continues to deliver results in Skechers Performance where our golfers are winning major championships and pickleball athletes are scoring big wins in our footwear.

“In the quarter, we communicated these product attributes in targeted mediums - be it television commercials with Martha Stewart and Tony Romo; in digital campaigns with global pop superstars like Ava Max and regional influencers; sponsoring major athletes on the court, course, mound or track; and expanding our presence at stores around the world through window campaigns and shop-in-shops.

“As we continue to grow towards our goal of $10 billion in annual sales by 2026, we remain as focused and as dedicated as we were from the year we started Skechers. With three decades of experience, we will continue to approach each day as a new opportunity to be the best we can be at designing, marketing and delivering innovation and comfort to the world.”

For the fourth quarter of 2022, the Company believes it will achieve sales between $1.725 billion and $1.775 billion.

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