On February 2, Skechers (SKXUS) released its 2023 annual financial results, with full-year sales of $8 billion, a record high, and a year-on-year increase of 75%；Adjusted earnings per diluted share were 3$49, a year-on-year increase of 466%。Among them, direct-to-consumer business (DTC business) sales increased by 243%，Full-year sales in China increased by 15 percent year-on-year6%
Inventories on December 31, 2023 decreased by 2 compared to December 31, 202292.6 billion US dollars, a decrease of 161%。
In the fourth quarter of 2023, Skechers sales increased by 44% to 19$600 million, a record high; Adjusted earnings per diluted share were 0$56, an increase of 167%。Among them, direct-to-consumer business (DTC business) sales increased by 203%。Asia-Pacific grew 15 percent, driven by double-digit growth in China, while the Americas grew 3 percent and EMEA decreased 7 percent.
D**id Weinberg, Skechers' global chief operating officer, said: "Skechers sales reached 19$600 million, with a gross margin of 531%, a record high. This reflects strong global demand for Skechers Comfort Technology products, particularly the 20% growth in our direct-to-consumer (DTC) business. Skechers wholesale sales were down 8% due to conservative inventory levels managed by some retailers, although we are optimistic about the outlook based on preliminary January 2024 shipment data and positive order trends in the first half of the year. Full-year 2023 achieved a new sales record of $8 billion, reduced inventory by 16%, and continued investment in distribution centers in India, Canada, and Latin America. ”
Robert Greenberg, Skechers Global Chief Executive Officer, said: "In 2023, Skechers Hands Free Slip-Ins are introducing a number of new styles that have been tested in the market and consumers of all ages love the comfort and convenience it brings. We also partnered with Martha Stewart and Snoop Dogg for a limited edition collection that was featured in a joint promotional event for the Super Bowl. We've signed the world's top soccer forward, Harry Kane, and other top players, launched Skechers boots, and we've partnered with NBA All-Star Julius Randle and rising basketball star Terance Mann to further expand our product range and elite roster. With more than 5,000 retail stores and a Fortune 500 company, our global reach continues to expand. ”
Willie Tan, Partner of Skechers China, CEO of Skechers China, Korea and Southeast Asia, said: "Compared to 2022 and 2019Skechers' FY2023 performance in the Chinese market was achievedSubstantial growth。In 2024, Skechers will surprise in the leisure and children's product categories; continue to make efforts in digital transformation and improving the efficiency of the first chain; It also plans to add 550 new stores, increase investment in new store forms and terminal retail experience. ”
According to Skechers' development plan, in 2023, Skechers will open 700 new stores in China, currentlyThe number of offline sales outlets has exceeded 3,500。It is expected that by 2026, Skechers will add nearly 3,000 new stores in China, and plans to reach 30 billion yuan in revenue.
In 2023, the brand will successively launch new products in the Chinese market, such as ** and children's flash shoes, Hyperburst bubble panda shoes, etc., and the invested Chinese live broadcast base will be put into use in August, and the scale is still expanding. And in November, it made its fifth appearance at the CIIE and held the first product launch conference in Asia.
With the increasing popularity of outdoor sports in recent years, Skechers ChinaThe outdoor product line has also been strengthenedThe current product is relatively mature. In addition, there have always been more female customers in Skechers, and with the development of football shoes and basketball shoes, Skechers China plansAttract more male customers
In the future, Skechers will add 1 billion yuan to carry out the innovation of the Asia-Pacific product research and development center in Dongguan and reorganize more Skechers functional departments. Skechers will also strengthen its internal infrastructure, with the Skechers China Logistics Center in Taicang, Jiangsu Province, scheduled to be completed in the fourth quarter of 2025.
In terms of guidance, Skechers expects sales in the first quarter of 2024 to be in the range of 217.5 billion to 22$2.5 billion, the market expectation was 21$9.2 billion; Earnings per share are expected to be in the range of 105 to 1$10, the market expectation is $1$20. The company expects full-year 2024 sales to be in the range of $8.6 billion to $8.8 billion, compared to the consensus of 89.9US$1.8 billion; Earnings per share at 365 to 3$85, the market expectation is 4$18.
Author: Yang Xue.
Editor: Tuya
Producer: Caijing Tuya (ID: caijingtuya).