Skechers Unveils New Football and Basketball Categories, Plans Global Expansion
2024-02-02
Skechers, a leading footwear company, recently held a conference call to discuss their fourth quarter 2023 earnings. The call was led by Rob Yowon, a speaker from the FP&A team. During the call, various topics were covered, including the company's annual sales record of $8 billion in 2023 and their core design principles of style, comfort, innovation, and quality at a reasonable price.
One of the highlights of the call was the introduction of two new categories by Skechers in 2023: football and basketball. Skechers partnered with Harry Kane, last year's top goal scorer in Europe, to launch Skechers football. They also signed Julius Randle from the New York Knicks and Terance Mann from the LA Clippers for Skechers basketball. These new categories have been launched in various markets around the world, including Europe, the United States, China, and the Philippines.
In terms of expansion, Skechers opened 217 third-party stores during the period, with 160 of them being in China. They also opened 11 third-party stores in Australia and Indonesia. Additionally, the company opened four company-owned stores in the first quarter, with plans to open 140 to 160 company-owned stores worldwide in 2024. They have also made significant progress in reducing inventory levels, with a 16% year-over-year reduction.
The conference call also touched upon the company's performance in different markets. Sales in the EMEA market decreased by 7.3% due to difficult comparisons and inventory congestion at certain customers. However, sales in the Asia Pacific market increased by 15%, with China experiencing 22% growth. India faced challenges due to higher inflation and shipment delays associated with the transition to a new distribution center.
Looking ahead, Skechers provided guidance for the full year 2024, expecting sales in the range of $8.6 billion to $8.8 billion and net earnings per share in the range of $3.65 to $3.85. They were optimistic about the future, with strong shipments and bookings for the first half of 2024. The company is focused on opening additional stores, expanding omnichannel capabilities, and adding distribution capacity in key markets.
Overall, the Skechers conference call covered a range of important business topics, including new product categories, expansion plans, market performance, and future outlook. The company remained committed to its core principles of style, comfort, innovation, and quality, and was poised for continued growth in the global footwear market.