US brand Skechers' sales rise 20.5% in Q3FY22

“Skechers’ ability to deliver record quarterly sales of $1.88 billion was a significant accomplishment, reflecting the ongoing global demand for our comfort technology products, which resulted in double-digit growth in our wholesale and direct-to-consumer segments,” said David Weinberg, chief operating officer of Skechers. “All regions grew, led by EMEA with improvements of 48 per cent as we realised growth across our largest European subsidiaries—Germany, Spain, and the United Kingdom, as well as strong distributor growth. The Americas achieved 16 per cent growth primarily due to robust demand in the United States and Canada. In APAC, we experienced growth of 9 per cent, which we are particularly pleased with given the COVID-related challenges in China and Japan during the quarter. While this broad-based consumer demand for Skechers is not unique to this quarter, we believe our ongoing momentum and strong product offering is a testament to the strength of our brand and resilience as an organisation.”

“As we celebrate our 30^th year in business with three consecutive quarters of record sales, we are honoured to be named Company of the Year by Footwear News for the third time. These notable achievements illustrate the ability and dedication of our entire organisation to design, deliver and market the most comfortable and innovative footwear available,” said Robert Greenberg, chief executive officer of Skechers.

Gross margin was 47.1 per cent, a decrease of 280 basis points, primarily the result of increased freight and logistics costs, and a higher proportion of distributor sales, partially offset by average selling price increases.

Operating expenses increased $123.3 million, or 19.5 per cent, and as a percentage of sales improved 30 basis points to 40.1 per cent. Selling expenses increased $23.0 million, or 18.0 per cent, due to higher global digital and brand demand creation expenditures. General and administrative expenses increased $100.2 million, or 19.9 per cent, and as a percentage of sales improved 20 basis points to 32.1 per cent. Increased expenses were primarily driven by domestic distribution centres where supply chain and logistics challenges drove higher labour and warehouse and distribution expenses.

“Skechers' record third quarter sales reflect double-digit growth across our segments and in most countries. These results are a testament to the demand for our comfort technology products,” stated John Vandemore, chief financial officer of Skechers. “Despite multiple macroeconomic headwinds, from foreign exchange rates to supply chain challenges and ongoing COVID-related lockdowns, we remain focused on our long-term growth strategy. We are encouraged that demand remains strong and as these headwinds moderate, we expect to see continued revenue growth and improved operating leverage."

Fibre2Fashion News Desk (RR)