Coming out of a record Q4 in terms of total sales, Skechers says it’s continuing with a go-forward strategy that will help the 30-year-old company achieve $10 billion in annual revenues within the next four years. Planned initiatives include a broader roster of comfort and technology-laden footwear, more multi-platform marketing efforts and additional ecommerce sites worldwide.

The company, which is expanding its Southern California distribution center to 2.6 million sq. ft. by the end of 2022, is currently forecasting FY22 total revenues of $7.0-7.2 billion and EPS of $2.70-2.90. Skechers’ senior executives expect logistics and supply chain issues to “create some downward pressure” on gross margin this year as the Direct-To-Consumer channel returns to a “more normalized level” of promotions in H2 but not as severe as seen in 2018 and 2019.

In Q4 ended Dec. 31, total revenues rose 24 percent to $1.65 billion. The sales result was achieved despite a 130 percent increase in in-transit inventory to $325.1 million that negatively impacted the brand’s DTC business and wholesale accounts. U.S. wholesale revenues increased 5 percent in Q4 as the company reported strong sellthrough rates for the segment and higher average selling prices.

For FY21, SKX revenues hit a record $6.29 billion with a gross margin of 49.3 percent. The company’s international distributor business was the biggest gainer, rising 124 percent on strong sales increases in the Middle East, Russia, Scandinavia, and Turkey. Annual operating income climbed 61 percent higher to $93.1 million. U.S. wholesale revenues were up nearly 28 percent to nearly $1.44 billion but gross margin was off 190 basis points to 36.4 percent. DTC annual sales rose 50 percent to $1.82 billion and achieved a gross margin of 66.5 percent. International wholesale revenues rose 34 percent last year to $3.025 billion with a 45.1 percent gross margin.

The company closed 11 of its U.S. stores in January and there are plans to shutter another 5-10, most mall-based concept stores, by year-end.