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Skechers revenues driven by strong domestic, international sales

US sportswear brand Skechers recorded a 12.5% increase in sales to $2.25bn during the first quarter of fiscal 2024 propelled by rising sales in both domestic and international markets.

For the three months ended 31 March, Skechers recorded a notable increase in group sales by 13.4% on a constant currency basis. It attributed this to a 15.2% increase in sales internationally and a 7.8% increase domestically.

The company saw wholesale and direct-to-consumer sales increase 9.8% to $127.1m and 17.3% to $122.6m respectively.

Geographically speaking, sales in Americas surged by 7.8% to $1.02bn, Europe, Middle East and Africa (EMEA) region experienced an increase of 17.4% to $627.6m, while Asia Pacific (APAC) saw a 15.9% to $604.5m. China mirrored this growth trend, with a 13.3% rise in sales to $319.5m.

Skechers chief financial officer, John Vandemore, views achieving another sales record and exceptional earnings as a testament to the strength of the brand and its ability to meet consumers’ needs.

Vandemore said: "We remain committed to our growth strategy, further expanding our global reach and helping shoppers around the world enjoy the comfort and value of our Skechers products, and we have continued confidence in our goal of achieving $10bn in sales by 2026."

Key Q1 2024 figures

Sales rose 12.5% from $2.0bn to $2.25bn.
Earnings from operations increased 33.6% from $224m to $299m.
Net earnings saw a 28.8% increase from $160.4m to $206.6m.

Outlook

For the second quarter of 2024, Skechers believes it will achieve sales between $2.18 and $2.23bn. While, for fiscal year 2024, the sports brand forecasts sales between $8.73 and $8.88bn.

David Weinberg, chief operating officer of Skechers, expressed confidence in the brand's strong global demand and a healthy inventory position. He asserted that Skechers is well-positioned for expansion worldwide, fueled by proven sellers, innovative technologies, and new product categories.

Weinberg said: "We believe that we have significant opportunities for growth across the globe, and we remain confident in our on-going success."

In February, Skechers recorded sales of $8bn for the year (FY23), a 7.5% year-on-year increase as global awareness and brand reach expands.

The US sports brand also recently opened a "high-tech" warehouse in Japan with automated storage and retrieval systems (ASRS) company Hai Robotics that aims to maximise operational efficiency, fulfilment speed and order accuracy.