Skechers reports ‘record quarterly sales’ of $2 billion
Footwear giant Skechers has today announced financial results for the second quarter ending June 302023, revealing "sales record".
Second quarter sales increased 7.7% to £1.57 billion ($2.01 billion) because of a 17.9% increase internationally and a 4.6% decrease domestically.
Wholesale sales declined by 5.9% to $67.3 million. However, direct-to-consumer (DTC) sales grew by 29.1% to £165 million ($212 million).
Gross margin was up by 52.7% to £830 million ($1.06 billion), thanks to a higher proportion of DTC sales and higher average selling prices. Net earnings stood at £119.2 million ($152.8 million).
John Vandemore, Chief Financial Officer of Skechers, commented: "Despite anticipated headwinds in the domestic wholesale market, we successfully navigated the challenges and achieved record quarterly sales in addition to a new second quarter earnings record."
Overall, for the first six months of 2023, sales increased 8.9% year-on-year to £3.13 billion ($4.014 billion), reflecting a 19.5% increase in international sales and a 4.7% decrease domestically.
Wholesale sales decreased by 1% to £18.7 million ($24 million), whereas DTC sales grew by 27.1% to £273.8 million ($351 million).
Gross margin was 50.8% and net earnings stood at £244.4 million ($313.2 million).
David Weinberg, Chief Operating Officer at Skechers, said: "Skechers second quarter results set a new quarterly sales record of $2.01 billion. This achievement continues to reflect the global demand for our comfort technology products, evidenced by double- or triple-digit sales growth in most markets. We saw increases of 20% in APAC, including 19% in China and 27% in India, as well as 16% in EMEA, including 29% in Germany and 13% in the UK."
Robert Greenberg, Chief Executive Officer of Skechers, added: "The second quarter marked yet another sales record and a new milestone as we made the Fortune 500 list of largest companies, a testament to the strength of our brand and the dedication of our entire organization to consistently create, innovate and meet the footwear needs of consumers."
