Skechers reveals record sales in Q1

Skechers has released its financial results for the first quarter ending 31 March 2022, revealing a 26.8% sales increase to £1.4 billion ($1.8 billion).

Wholesale sales growth rose by 32.7% to £954 million ($1.2 billion), compared to £749 million ($943 million) in 2021. This was led by increases in the Americas of 41.6% and EMEA of 42%.

Direct-to-Consumer sales growth increased by 15.7% to £451 million ($568 million), compared to £390 million ($491 million) in 2021. This was led by increases in EMEA of 157.3%, which "lapped COVID restrictions in the prior year".

Gross margin was 45.3%, a decrease of 250 basis points, driven by higher per unit freight costs partially offset by average selling price increases. Net earnings totalled £96 million ($121.2 million).

Looking ahead to Q2, Skechers expects it will achieve sales between £1.3 billion ($1.75 billion) and £1.4 billion ($1.8 billion). For the fiscal year 2022, the company hopes to achieve sales between £5.7 billion ($7.2 billion) and £5.8 billion ($7.4 billion).

David Weinberg, COO at Skechers, said: "First quarter sales of over $1.8 billion are a new quarterly sales record for Skechers, and reflect our broad-based global appeal and our team’s focus on successfully navigating supply chain constraints. Despite the on-going pandemic and other macroeconomic headwinds, we are especially encouraged by the phenomenal growth we experienced. We believe this momentum will continue as we strive towards our goal of $10 billion by 2026."