Skechers, a leading U.S. footwear company, made headlines on Thursday with its impressive 2023 revenue figures, soaring by 7.5% to reach a monumental $8 billion. The surge was powered by a robust fourth quarter ending December 31, buoyed by the revitalized Asia-Pacific market.
During the fourth quarter, sales surged by 4.4%, driven by a notable 6.9% international increase and a modest 0.3% domestic uptick. While direct-to-consumer sales witnessed a remarkable 20.3% surge, wholesale experienced a slight dip of 8.3%.
Geographically, the Asia Pacific region spearheaded growth with a remarkable 15% increase, driven primarily by double-digit expansion in China. Conversely, the Americas saw a modest 3% growth, while Europe, the Middle East, and Africa experienced a 7% decline, according to reports from the company based in Los Angeles.
In the span of three months, net earnings hit $87.2 million, with diluted earnings per share standing at $0.56, marking a significant improvement compared to the prior year’s figures of $75.5 million in net earnings and diluted earnings per share of $0.48.
David Weinberg, the Chief Operating Officer of Skechers, expressed enthusiasm over the company’s achievements, highlighting a new fourth-quarter sales record of $1.96 billion and a record gross margin of 53.1%. He attributed this success to the surging global demand for their comfort technology products, particularly in the direct-to-consumer segment, which witnessed a remarkable 20% growth. Despite an 8% decline in wholesale sales due to conservative inventory management, Weinberg remains optimistic about changing trends based on early indicators from January shipments and positive order trends for the first half of the year.
Looking ahead, Skechers celebrated a new annual sales record of $8.00 billion, alongside a 16% reduction in inventory levels. The company continued its investment in distribution facilities, establishing new locations in India, Canada, and Latin America. As they embark on 2024, Skechers is confident in the strength of its brand and anticipates continued growth in both its direct-to-consumer and wholesale segments on a global scale.
