Skechers post record quarterly sales for 18% surge in 2022 revenues
Skechers U.S.A. Inc. announced on Thursday record quarterly sales of $1.88 billion for the fourth quarter, capping off a year of strong growth for the footwear brand, with annual sales up double digits.
The Los Angeles-based company said sales for the quarter ending December 31 increased 13.5%, on the back of a 22.3% increase in domestic sales and an 8.7% increase in international sales led by strength in wholesale sales. All segments experienced growth, with wholesale increasing 15.7% and direct-to-consumer increasing 10.8%.
Full year sales increased 18%, reflecting a 20% increase domestically and a 16.6% increase internationally with the largest contribution derived from wholesale sales. Both segments experienced increases, with wholesale increasing 23.2% and direct-to-consumer increasing 10.2%. Net earnings were $373 million for the year, said the company.
"2022 was another milestone year for Skechers as we achieved record annual sales of $7.4 billion. This increase of $1.1 billion, or 18%, from the prior year was the result of four quarterly sales records, including fourth quarter sales of $1.88 billion,” said David Weinberg, chief operating officer of Skechers.
“Fourth quarter growth was driven by increases of 16% in Wholesale combined with 11% in direct-to-consumer. Wholesale results were driven by double-digit growth in the U.S., international distributors, Germany, India, Mexico, and Spain. The strength in our direct-to-consumer business was primarily driven by domestic sales.
"The growth within the quarter was partially offset by a 23% decrease in our China sales, which were impacted by Covid-related restrictions, including the temporary closure of more than 1,000 Skechers stores in November.
Looking ahead, the company said its believes its business in China will improve throughout 2023, with the recent elimination of the zero-Covid policy.
"In addition, while the inventory challenges at our domestic distribution center have been difficult to navigate, we are seeing improvements and remain confident in the strength of our brand and the demand for our products. We ended the year strong and expect to see continued growth in 2023," added Weinberg.
Copyright © 2023 FashionNetwork.com All rights reserved.