Skechers, the Los Angeles-based company, has reported record-breaking first-quarter sales with strong growth in international markets and a surge in direct-to-consumer sales.
The company announced that international sales rose by 21%, driven by significant increases in the EMEA and APAC regions.
However, domestic sales fell by 4.8%.
Wholesale sales grew by 3.5%, with notable growth in the EMEA region of 20.1% and the APAC region of 24.1%.
This growth was partially offset by a decrease in the AMER region of 13.2%.
The average selling price for wholesale increased by 5.3%, while volume decreased by 1.9%.Direct-to-consumer sales saw a substantial increase of 24.5%.
This growth was fueled by strong demand for Skechers’ fresh comfort product offering and improved inventory availability in stores.
The AMER region experienced a growth of 28.6%, the APAC region saw a growth of 17.9%, and the EMEA region recorded an impressive growth of 29.5%.Skechers’ net earnings for the first quarter were $160.4 million, with diluted earnings per share of $1.02.
This demonstrates the company’s strong performance in the global market.
In comparison, the prior year’s net earnings were $121.2 million, and diluted earnings per share were $0.77.David Weinberg, a spokesperson for Skechers, expressed his excitement about the company’s achievements: ‘Our first quarter of 2023 marks a new milestone with quarterly sales of over $2 billion.
The sales increase of 10% or $182 million reflects our broad strength in most markets globally.
We have seen remarkable sales improvements in both the EMEA and APAC regions, as well as significant growth in China.’Weinberg also highlighted the success of the direct-to-consumer segment: ‘With a worldwide increase of 24.5%, direct-to-consumer performed exceptionally well.
This can be attributed to the improved inventory availability in our stores and the strong demand for our fresh comfort product offering.
Our record sales, expanded gross margins of 48.9%, and improved inventory levels showcase the strength of our comfort technology products and impactful marketing efforts worldwide.
We are continuously enhancing our distribution capabilities to meet the global demand for the comfort, innovation, style, and quality that Skechers provides to consumers.’.
