Skechers 2023 sales increase 7.5 percent to 8 billion dollars

Fourth quarter sales at Skechers increased 4.4 percent to 1.96 billion dollars as a result of a 6.9 percent increase internationally and a 0.3 percent increase domestically. On a constant currency basis, sales increased 2.8 percent.

The company’s full year sales increased 7.5 percent to 8 billion dollars, reflecting a 13.3 percent increase internationally and a 0.8 percent decrease domestically.

For the fiscal year 2024, the company believes it will achieve sales between 8.60 and 8.80 billion dollars and diluted earnings per share of between 3.65 dollars and 3.85 dollars.

For the first quarter of 2024, the company expects sales between 2.175 and 2.225 billion dollars and diluted earnings per share of between 1.05 dollars and 1.10 dollars.

Review of Skechers’ Q4 results

The company’s wholesale sales declined 86.6 million dollars or 8.3 percent, including decreases in EMEA of 19.5 percent and AMER of 7.4 percent, partially offset by an increase in APAC of 7.1 percent.

Direct-to-consumer sales grew 168.7 million dollars or 20.3 percent, including increases in APAC of 21.2 percent, AMER of 14.6 percent, and EMEA of 53.1 percent.

“Skechers achieved a new fourth quarter sales record of 1.96 billion dollars and a record gross margin of 53.1 percent. This success reflects the strong worldwide demand for our comfort technology products, especially in our direct-to-consumer business which grew 20 percent,” said David Weinberg, chief operating officer of Skechers.

Gross margin for the quarter was 53.1 percent, an increase of 470 basis points, Earnings from operations increased 43.7 million dollars or 50.4 percent to 130.3 million dollars, resulting in an operating margin of 6.6 percent.

Net earnings rose to 87.2 million dollars and diluted earnings per share were 56 cents compared with the prior year.

Skechers’ full year sales increase by 7.5 percent

Wholesale sales decreased 127.6 million dollars or 2.8 percent due to a decrease in AMER of 10.6 percent, partially offset by increases in APAC of 12.6 percent and EMEA of 0.1 percent.

Direct-to-consumer sales grew 683.4 million dollars or 24.3 percent due to increases in AMER of 21.5 percent, APAC of 22 percent, and EMEA of 49.2 percent.

“Skechers’ new annual sales record of 8 billion dollars was the result of the broad acceptance for our products worldwide, our loyal and growing consumer base, the cultivated relationships with our partner network, and our determined and dedicated team. Given our momentum, we are confident that 2024 will be another successful year for the company,” added Robert Greenberg, chief executive officer of Skechers.

Gross margin for the year was 51.9 percent, an increase of 470 basis points, earnings from operations increased 238.1 million dollars to 784.8 million dollars, resulting in an operating margin of 9.8 percent.

Net earnings were 545.8 million dollars and diluted earnings per share were 3.49 dollars, an increase of 46.6 percent over the prior year.