Skechers reports record-breaking annual sales of $8 billion

U.S. footwear firm Skechers announced on Thursday record-breaking revenues in 2023, up 7.5% to $8 billion, on the back of another strong quarter ending December 31 thanks to a rebounding Asia-Pacific market.

Fourth quarter sales increased 4.4% as a result of a 6.9% increase internationally and a 0.3% increase domestically. Direct-to-consumer increased 20.3% and wholesale decreased 8.3%.

Regionally in the quarter, Asia Pacific grew 15%, led by double-digit growth in China, the Americas grew 3%, and Europe, Middle East and Africa decreased 7%, said the Los Angeles-based company.

For the three months, net earnings were $87.2 million and diluted earnings per share were $0.56 compared with prior year net earnings of $75.5 million and diluted earnings per share of $0.48.

​“Skechers achieved a new fourth quarter sales record of $1.96 billion, and a record gross margin of 53.1%. This success reflects the strong worldwide demand for our comfort technology products, especially in our direct-to-consumer business which grew 20%. Our wholesale business experienced a decrease in sales of 8%, as several retailers continued to conservatively manage their inventory levels. However, we are optimistic that this behavior is changing based upon early reads from January shipments and positive order trends for the first half of the year,” stated David Weinberg, chief operating officer of Skechers.

“For the full-year, we achieved a new annual sales record of $8.00 billion, reduced inventory levels by 16%, and continued to invest in our distribution facilities, including new locations in India, Canada and Latin America. We begin 2024 confident in the strength of our brand and continued growth in both our direct-to-consumer and wholesale segments globally.”