Home NEWS Skechers Reports Strong Performance in 2023

Skechers Reports Strong Performance in 2023

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Sketchers logo is seen in London on 13 October 2023. (Photo by Giannis Alexopoulos/NurPhoto via Getty Images)

“Skechers’ achievement of a new annual sales record of $8.00 billion underscores the global acceptance of our products, the expansion of our loyal customer base, the strength of our partnerships, and the dedication of our team,” remarked Robert Greenberg, CEO of Skechers.

In fiscal 2023, Skechers saw a 7.5% growth in sales, reaching $8.00 billion, with a notable 13.3% increase internationally, offsetting a slight 0.8% decrease domestically. Wholesale channel sales declined by 2.8% to $4.5 billion, primarily due to a decrease in the Americas region, while the direct-to-consumer channel contributed $3.5 billion, growing by 24.3%.

Skechers’ gross margin improved to 51.9% in 2023, up 470 basis points year-over-year, attributed to higher average selling prices and increased direct-to-consumer sales. Net earnings for the year were $545.8 million, or $3.49 per diluted share, compared to $373.2 million in fiscal 2022. In Q4 2023, Skechers achieved record sales of $1.96 billion, up by 4.4%, driven by international growth and slight domestic gains. Wholesale sales decreased by 8.3% to $962.6 million, while direct-to-consumer sales rose by 20.3% to $829.6 million.

David Weinberg, COO of Skechers, noted a wholesale sales decrease of 8%, attributing it to retailers managing inventory levels cautiously. However, positive trends in January shipments suggest a changing landscape.

For fiscal 2024, Skechers expects sales between $8.60 billion and $8.80 billion and diluted earnings per share between $3.65 and $3.85. Q1 is projected to see sales between $2.17 billion and $2.22 billion and diluted earnings per share between $1.05 and $1.10 billion.