Wholesale Sales Drive Growth – Footwear News

Skechers posted record sales in the second quarter of 2022 on Tuesday despite macroeconomic headwinds, supply chain issues and COVID-related restrictions in China during the period.

The Los Angeles-based shoe brand announced on Tuesday that it reached $1.87 billion in sales in the second quarter, an increase of 12.4% over the same period last year. According to Skechers COO David Weinberg, the growth was the result of a 15.4% increase in domestic sales and a 10.0% increase in international sales, primarily due to strong wholesale sales. Growth was also driven by sales increases of 21% in the Americas and 8% in EMEA, Weinberg said. In APAC, where sales were flat due to COVID-related restrictions in China, Skechers saw strong growth in most other markets, particularly India, South Korea and Malaysia.

In wholesale trade in particular, sales increased by $176.1 million, or 18.3%, in the second quarter. This was led by a 34.9% increase in the Americas region. Skechers’ direct-to-consumer segment grew by $29.8 million, or 4.3%.

“During the quarter, we focused on delivering our in-demand footwear directly to consumers and through our wholesale partners around the world,” Weinberg said. “While we remain cautious given the challenges across the globe, we believe our comfort technology footwear, impactful marketing and brand strength will drive continued sales growth in the second half of the year. “

Despite these gains, Skechers noted that net profit was down in the quarter. Net income was $90.4 million and diluted earnings per share were $0.58, down 34.1% from a year earlier, the shoe brand said. Skechers noted that diluted earnings per share included an unfavorable impact of $0.11 due to lower foreign exchange rates, primarily in EMEA.

“2022 is shaping up to be another remarkable year for Skechers with two consecutive record sales quarters, the result of the passion, determination and execution of our talented team to evolve our product offering, inform the world of our exceptional comfort technologies and efficiently navigate the supply chain constraints,” Skechers CEO Robert Greenberg said in a statement on Tuesday.

“This year, our 30th year in business, is our strongest year from a sales, marketing and product perspective,” added Greenberg. “We are uniquely positioned as a brand that delivers comfort, technology, style, innovation and quality with a global reach that includes 4,355 Skechers stores. As a company, we are determined to surpass ourselves and reach new heights as we strive to meet the needs of our customers. »

Looking ahead, Skechers estimates it will achieve sales between $1.80 billion and $1.85 billion and diluted earnings per share between $0.70 and $0.75 in the third quarter of 2022.

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