Skechers sees sales grow by 18% in 2022

The company achieved sales in the fourth quarter of US$1.88 billion, an increase of 13.5% year-on-year, driven by a 22.3% increase domestically (in the U.S.) and an 8.7% increase internationally.

Wholesale sales growth in the period was 15.7% or US$142.4 million, led by a 31.1% increase in the EMEA region and 18.6% in AMER. Wholesale volume was up by 9.4% and the average selling price increased by 6.3%.

Direct-to-consumer (DTC) sales growth was US$81 million or 10.8%, led by increases of 27% in AMER and 19.1% in EMEA. DTC volume was up by 14.8% in the fourth quarter while average selling price dropped by 3.5%.

Gross margin for the period was 48.4%, a decrease of 40 basis points that Skechers attributed to higher cost per unit and increased promotions, partially offset by average selling price increases. Net earnings for the fourth quarter were US$75.5 million.

In the full financial year, sales saw an increase of 18% to US$7.44 billion, reflecting an increase of 20% domestically and 16.6% internationally, driven by wholesale results.

In wholesale, sales growth was US$873.8 million or 23.2%, led by increases in AMER of 28.7% and EMEA of 33.9%. Wholesale volume for the period was up by 18.2% and average selling price by 4.8%.

DTC sales growth for the fourth quarter was 10.2% or US$260.5 million, with increases of 13.8% in AMER and 25.3% in EMEA. DTC volume increased by 6.6% and average selling price was up by 3.4%

Gross margin for the full year was 47.2%. The company noted that this was primarily the result of higher freight and logistics costs, partially offset by average selling price increases. Net earnings for the full financial year were US$373 million.

Looking forward to the 2023 fiscal year, Skechers is expected sales between US$7.75 and 8 billion, with sales in the first quarter alone forecast at US$1.8-1.85 billion.

“Starting our fourth decade of business as a US$7.4 billion company that grew over US$1 billion this past year is a phenomenal achievement and one that leaves me with overwhelming pride for the dedication, creativity and insight of the global Skechers team. With their flexibility and drive, along with the support of both our loyal partners and consumers, we expect to achieve continued success across all areas of the business,” said CEO Robert Greenberg.

“With the goal of US$10 billion in sales by 2026, our aim is high, but we believe attainable due to several factors. Our range of comfort technology products is broader and more appealing than ever, and many new attention-grabbing collaborations are planned throughout this year. We are committed to our marketing strategy and will be revealing even more surprising star power in 2023, which we expect will enable us to reach a more diverse audience. And we have the global infrastructure and talented teams in place to deliver what consumers want – comfort, style, innovation, and quality at a reasonable price from a brand they trust. 2022 was an incredible year for us, and I’m looking forward to what 2023 will bring.”