Sneakers and casual athletic wear are the hottest trend at the moment, so it’s no surprise that sneaker company Skechers is reaping the rewards, with first quarter sales exceeding one billion dollars ($1.073 billion, to be exact); a 9.6% increase.
“First quarter 2017 net sales represent a new quarterly record and the first time we exceeded $1 billion in quarterly sales. We are particularly proud of the growth in the quarter considering the tough comparison to 2016, which included the benefit of an additional day in February and Easter falling in March,” said David Weinberg, chief operating officer and chief financial officer, in a release
“The growth was the result of double-digit increases in both our international distributor and subsidiary/joint venture businesses, as well as in our global Company-owned Skechers retail business. Further, in our domestic wholesale business, we shipped 4.5% more pairs than in the first quarter of 2016 but average price per pair decreased by 4.8% primarily due to stronger sales in our lower-priced lines including BOBS from Skechers and our sandal business.”
“Skechers’ international business, including retail, grew to 51.3% of our total sales in the first quarter due to the strength of our brand in numerous markets,” added Mr. Weinberg. “While we see opportunities in the United States to increase our business, we believe international markets continue to present the strongest opportunity for growth. To meet this growth in our international business, we continue to invest in our infrastructure and marketing to support the current and planned global expansion.”
Robert Greenberg, SKECHERS chief executive officer, commented: “In 2005, we surpassed $1 billion in annual sales, and now less than 12 years later, we had our first $1 billion plus in quarterly sales. The key to our success then and now is the drive, dedication and talent of the many people behind this great brand. We look very good from a product standpoint—with innovative, comfortable and beautiful footwear and now apparel—and in our marketing as well—with lifestyle campaigns featuring Rob Lowe, Meghan Trainor, Joe Montana, Howie Long, Sugar Ray Leonard, Brooke Burke-Charvet and Kelly Brook. Our success in performance footwear can be seen in our title sponsorship of the Skechers Performance Los Angeles Marathon, in the Pan-European Ironman where we are the footwear sponsor, and in our many pro golfers, including American medalist Matt Kucher, Canadian Brooke Henderson, Scotland’s Russell Knox, Spaniard Belen Mozo, and American Wesley Bryan, who just earned his first PGA Tour victory.”