Skechers posts record annual sales

United States
Published:  14 February, 2020

International sales for the U.S. sports footwear brand increased 31.2% in 2019, while sales in the U.S. were up 13%.

For the full year 2019, Skechers’ sales grew 12.5% as the result of a 20.2% increase in the company’s international business and a 3.3% increase in its domestic business. According to Skechers, gross margins decreased slightly as a result of promotional efforts to clear seasonal inventory during the year and an increase in the average cost per unit in select international markets, partially offset by an increase in the average selling price in its direct-to-consumer business. Earnings from operations increased US$80.6 million (+18.4%) to US$518.4 million in 2019. Net earnings totalled US$346.6 million and diluted earnings per share were US$2.25.

“2019 was a remarkable year for Skechers as we achieved four quarters of record sales, culminating in annual sales of over US$5.2 billion; a significant milestone”, said Robert Greenberg, CEO, Skechers. “Our continued growth along with the 27 product and brand awards we received in 2019 are evidence that we accomplished our goal”, he said, adding that the company also continued to grow its men’s business, and introduced the next generations of our walk, run and golf shoes.

Like several other Western brands, Skechers has also temporarily closed stores in China and said its outlook for the next quarter could materially change if the situation in China worsens considerably and effects the Company’s business outside of China or its supply chain. For the first quarter of 2020, the Skechers expects sales in the range of US$1.40 billion to US$1.42 billion, and diluted earnings per share of US$0.70 to US$0.75.