Skechers is defying all descriptions of the footwear market as tough and reported another record for quarterly sales growth with 17.2% growth (currency neutral) in the third quarter (Q3) of 2019. The $1.354-bn income generated by sales until September 30th is an actual 15% increase on the same period last year.
The brand is also rapidly growing its footprint outside the US domestic market. International sales grew 21.9% (25.7% currency-neutral) and same store sales grew 9.9% internationally. Wholesale sales grew 21.7% internationally. More than half (58.8%) of Skechers’ sales are now generated outside the US.
“Skechers is firing on all cylinders,” said CEO Robert Greenberg. “Our global marketing efforts are creating awareness and generating demand. Our product is innovative, relevant and comfortable.
“In the last three months, we saw our chunky fashion footwear on fashion week runways in New York, London, and Milan; our Skechers GO Run Hyper won its fifth award this year – Gear of the Year from Runner’s World. We also won the Schuhkurier award in Germany for Brand of the Year, and launched unique collaborations in Asia, North America, and other regions.
“We continue to lead the walking footwear category and delivered technical and innovative work in golf, sport and kids footwear. We supported our key initiatives with a 360-degree approach to marketing by adding a comprehensive digital strategy to our traditional television campaigns.
“Our product offering is vast and reaches every demographic, and at its core, comfort is what consumers have come to know and expect from Skechers. This, and our comprehensive marketing, differentiates Skechers from other brands, and is why we achieved growth across our domestic, international and direct-to-consumer businesses. We believe our holiday sales will be stronger across all channels of our business, and we’re looking forward to 2020 and the launch of our first campaign with Los Angeles Dodgers pitcher Clayton Kershaw.”
“We believe these results are an indication of the global strength of our brand with strong increases around the world — from Germany, the UK and Spain, to India, Turkey and the UAE (headquarters of the South African distributor Brandfolio), as well as China, Russia and Japan,” added COO David Weinberg. “Based on feedback from recent meetings with our international partners and domestic accounts, as well as our incoming order rate, we believe the momentum will continue in the fourth quarter and into 2020.”
Skechers believes it will achieve sales in the range of $1.225-bn to $1.250-bn in the fourth quarter.