Skechers Sees Sales Momentum Pendulum Swing Toward International in Q2
Skechers Sees Sales Momentum Pendulum Swing Toward International in Q2
A difficult year-over-year comparison and industrywide footwear inventory issues plagued Skechers’ Q2 results in the Americas where wholesale revenues fell 19 percent, but the company was still able to achieve more than $2 billion in revenues and a 69 percent increase in profitability to more than $152.7 million. Excluding U.S. wholesale, Americas’ revenues rose 24 percent in Q2.
A 29 percent rise in global direct-to-consumer sales to $939.5 million and double-digit, constant currency revenue increases in both the EMEA (+16%) and APAC (+20%) fueled the company’s quarterly results. D-T-C sales were up 28 percent in the Americas. Average selling price improved by 4 percent and unit volume was 24 percent higher.
Speaking to the brand’s current inventory situation, CFO John Vandemore said the levels in the top 10 to 20 wholesale accounts were in good shape at period end. “I would argue probably a little bit leaner than we want them to be. So, we think that tees up well for strong sellthrough-driven re-orders.”
Skechers, which describes itself as the third-largest athletic footwear brand globally, is teasing the introduction of new categories later this year but remains coy on details thus far.
While the company continues to eye $10 billion in annual revenues by 2026, the current FY outlook calls for sales of $7.95 to $8.1 billion and diluted EPS of $519 million at the mid-point of a $3.25 to $3.40 a share range.
Snoop Dogg Launch: After kicking off the year with the Skechers x Snoop Dogg big game campaign, Skechers is now launching a footwear collab with the West Coast rap icon — initial styles dropped on August 1 with more rolling out in the coming weeks.
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