Skechers Achieves Unprecedented Annual Sales Milestone, Surpassing $8.00 Billion in 2023

Skechers Sets New Fourth Quarter Sales Record at $1.96 Billion with a Record Gross Margin of 53.1%

Skechers proudly announces a remarkable fourth quarter performance, achieving record-breaking sales of $1.96 billion and an impressive gross margin of 53.1%. The outstanding results highlight the robust global demand for our innovative comfort technology products, particularly evident in the 20% growth of our Direct-to-Consumer business.

While our Wholesale business experienced an 8% decline in sales due to cautious inventory management by certain retailers, we anticipate a positive shift based on early indicators from January shipments and favorable order trends for the first half of the year. David Weinberg, Chief Operating Officer of Skechers, expressed optimism regarding this evolving trend.

Breaking down regional performance for the quarter, Asia Pacific showed a remarkable 15% growth, primarily driven by double-digit expansion in China. The Americas reported a solid 3% growth, while Europe, Middle East, and Africa faced a 7% decrease.

Looking at the full-year picture, Skechers achieved an unprecedented annual sales record of $8.00 billion, successfully reducing inventory levels by 16%. The company continued its commitment to growth by investing in distribution facilities, including new locations in India, Canada, and Latin America.

As we embark on 2024, Skechers remains confident in the strength of its brand and anticipates sustained growth in both the Direct-to-Consumer and Wholesale segments on a global scale.

2023 Achievements

  • Skechers attains a record annual sales figure of $8.00 billion, marking a noteworthy year-over-year increase of 7.5%.
  • Direct-to-Consumer sales witness a substantial growth of 24.3%.
  • Diluted earnings per share reach $3.49, showcasing an impressive year-over-year increase of 46.6%.
  • Inventory experiences a significant decrease of $292.6 million, equivalent to 16.1%, from December 31, 2022.

Fourth Quarter Milestones

  • Skechers achieves record-breaking fourth quarter sales amounting to $1.96 billion, indicating a notable year-over-year increase of 4.4%.
  • Direct-to-Consumer sales show a robust growth of 20.3%.
  • Diluted earnings per share rise to $0.56, reflecting a year-over-year increase of 16.7%.
  • The company repurchases $60 million of Class A common stock.

Robert Greenberg, Chief Executive Officer of Skechers, attributes the company’s new annual sales record to the widespread acceptance of its products globally, a loyal and expanding consumer base, strong relationships with partner networks, and the dedication of its team. Greenberg emphasizes the pivotal role of product and marketing in the company’s success, highlighting the focus on comfort, quality, style, and innovation in every collection.

Throughout the year, Skechers introduced fresh styles of the popular Skechers Hands Free Slip-ins, recognizing the universal appeal of comfort and convenience. Partnerships and a capsule collection with Martha Stewart and Snoop Dogg, featured in a joint Super Bowl campaign, further added to the brand’s appeal. Skechers Performance made strategic signings, including Europe’s top goal scorer for 2023, Harry Kane, and other premier players for the launch of Skechers Football. The company expanded its product offerings and elite-level roster with NBA players Julius Randle and Terance Mann, both involved in Skechers Basketball.

With over 5,000 Skechers retail stores and the company’s inclusion in the Fortune 500 list, the brand’s global reach continues to expand. The combination of product initiatives and a diverse lineup of athletes and ambassadors provides ample opportunities to convey the Skechers story and foster global business growth. Building on this momentum, the company expresses confidence in another successful year in 2024.

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