Skechers Continuing to Focus on Logistic Investments
A new 2.6-million-sq.-ft. Skechers distribution center in Southern California is in its final stage of integration into the company’s existing system and is expected to deliver improved processes and volume for Skechers through 2023. Additional ongoing DC investments for the company, slated to come online in the first half of next year, include a 427,000-sq.-ft. facility in Vancouver that will help improve Skechers’ delivery times across Canada and a 1.1-million-sq.-ft. DC near Mumbai, India scheduled to open around June 2023.
During the third quarter, Skechers delivered a 14.9 percent increase in U.S. sales to $745.8 million that include a 14.7 percent improvement in wholesale revenues to $406.6 million and 15 percent jump in Direct-To-Consumer sales to $339.2 million.
Overall, Skechers reported a 16.7 percent decline in third quarter profits to $85.9 million from $103.1 million as currency headwinds, congestion within its distribution centers and supply chain disruptions over the last year negatively impacted results that were positively impacted by eased pandemic-related restrictions and lowering freight costs. Operating earnings fell 11 percent to $130.0 million. Total sales were 21 percent higher year-over-year at $1,878.4 million versus $1,558.5 million.