Skechers USA Inc. is on the move again.
Skechers has logged more than 20 years in Latin America, and now the company says it will accelerate its global expansion efforts by transitioning 21 of its stores there into subsidiary-owned and -operated locations. The Manhattan Beach, Calif.–based company said it’s also eyeing new retail destinations and plans to expand its account distribution base in the region.
The new wholly owned subsidiary, Skechers Latin America LLC, will oversee more than 30 countries in Latin America — including the four key markets of Panama, Peru, Colombia and Costa Rica.
“Skechers’ strategic business model has established a strong framework for our brand to grow in many parts of the world — and we see Latin America as the next natural destination for us to employ this vision,” said David Weinberg, Skechers’ COO and CFO, in a release. “Over the years, our distributor in the region, Dabsan International, established an extensive retail and wholesale network in Latin America, and at one point became our largest distributor. Latin America and its key markets remain an important part of our international business, especially given our current growth in the Americas — including the United States, Canada, Brazil and Mexico.”
The CEO said his confidence in Skechers’ ability to expand in the region is buoyed by the company’s international growth in the most recent quarter.
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“With the increased demand for our brand and incredible growth that Skechers has experienced over the last few years — including our international wholesale business, which has grown more than 60 percent in the second quarter of 2015 year over year — we see an opportunity to drive our Latin America business to the next level,” Weinberg said. “We believe that we can use the strengths of our marketing, advertising, capital and infrastructure to significantly grow this key market, helping it reach its full potential.”
Key executives at Dabsan International, including Dabsan’s president, Daniel Bassan, will help manage Skechers Latin America LLC, the company said.
The subsidiary will be based in Panama City and will oversee the company’s business and regional showrooms in Panama, Peru, Colombia and Costa Rica. Additional regions under the new subsidiary include the Caribbean, Ecuador, Guatemala, El Salvador, Honduras and Nicaragua.