US footwear brand Skechers posts 24.4% sales growth in Q4FY21

US footwear brand Skechers posts 24.4% sales growth in Q4FY21




Fourth quarter sales of footwear brand Skechers has increased 24.4 per cent due to a 9.8 per cent rise in domestic sales and a 34.0 per cent increase in international sales. Domestic and international growth was driven by increase in both wholesale and direct-to-consumer, with the largest improvement attributable to international wholesale.

In the fourth quarter of fiscal 2021, the company’s sales grew across all segments with increases to domestic wholesale of 4.6 per cent, international wholesale of 30.1 per cent, and direct-to-consumer of 30.3 per cent. Improvements in domestic wholesale were the result of higher unit sales volume and higher average selling prices. International wholesale increases were driven by growth of 123.5 per cent in distributor sales, 61.3 per cent in Europe, and 8.6 per cent in China. Improvements in direct-to-consumer sales resulted from growth across domestic and international retail stores, driven by a double-digit increase in average selling price resulting from reduced promotions and higher prices. Direct-to-consumer comparable same store sales increased 21.1 per cent, driven by an increase of 15.2 per cent domestically and 35.5 per cent internationally.

Full year sales rose 36.7 per cent, reflecting a 33.4 per cent increase in domestic sales and a 39.0 per cent increase in international sales with the largest contribution derived from international wholesale growth. On a constant currency basis, the company’s total sales grew 33.7 per cent, Skechers said in a press release.

Fourth quarter sales of footwear brand Skechers has increased 24.4 per cent due to a 9.8 per cent rise in domestic sales and a 34.0 per cent increase in international sales. Domestic and international growth was driven by increase in both wholesale and direct-to-consumer, with the largest improvement attributable to international wholesale.

“Skechers’ focus on delivering signature comfort technology in our products resulted in record 2021 sales,” said Robert Greenberg, chief executive officer of Skechers. “We’re extremely proud of the entire Skechers team and of our partners who worked through the many obstacles last year; unwavering in their dedication to the Skechers brand. We believe our accomplishments in 2021, including several comfort-focused new product launches and the further expansion of our global footprint, position Skechers for continued growth toward our goal of $10 billion in sales.”

“In 2022, we’ll be introducing more innovative and comfortable technology products, developing multi-platform marketing campaigns with our growing roster of ambassadors including recently announced Amanda Kloots, and rolling out more Skechers e-commerce sites around the world. We are finalising plans to enter the metaverse, creating an entirely new opportunity for the Skechers brand. With our creativity, product, operational support and global reach, we expect 2022 to be another record year,” added Greenberg added.

“2021 was an outstanding year, with four quarterly sales records, including fourth quarter sales of $1.65 billion, and a new full year sales milestone of $6.29 billion,” said David Weinberg, chief operating officer of Skechers. “Fourth quarter growth was driven by increases of 30 per cent in both our international wholesale and direct-to-consumer businesses, and 5 per cent in domestic wholesale. The international wholesale increase was primarily driven by triple-digit growth in our distributor business, high single-digit growth in China, and double-digit growth in the United Kingdom, India, Spain, and many other markets.”

“The improvement in domestic wholesale was especially notable in the fourth quarter as we worked to alleviate supply chain disruptions. We attribute our global growth to the broad-based demand as consumers look to Skechers for its comfort, innovation, style and quality at a reasonable price. As the demand for Skechers remains strong, our focus continues to be on the health and safety of our team, managing both supply chain disruptions and elevated freight costs where possible, all while profitably driving growth in 2022,” Weinberg concluded.

Fibre2Fashion News Desk (RR)





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