A global pandemic, supply chain slowdowns, and record-high inflation didn’t stop Skechers from delivering stellar results in 2021.
The fast-growing comfort focused footwear brand managed to break four quarterly sales records throughout the year and set a new record for full year sales in 2021 at $6.29 billion.
In the fourth quarter, Skechers unveiled sales of $1.65 billion, marking a year over year increase of 24.4%. Net earnings were $402.4 million, with diluted earnings per share of $2.56, and adjusted diluted earnings per share of $0.43.
The growth was driven by 30% growth in both direct-to-consumer channels as well as the brand’s international wholesale business. The company saw 5% growth in its domestic wholesale business as well, which leaders attributed to improvements in supply chain slowdowns that helped the company get product to retailers.
“As the demand for Skechers remains strong, our focus continues to be on the health and safety of our team, managing both supply chain disruptions and elevated freight costs where possible, all while profitably driving growth in 2022,” said Skechers COO David Weinberg.
In an earnings preview last week, Williams Trading Analyst Sam Poser said that Skechers had “the best supply chain” in his coverage.
“Demand remained high and product flow was not as bad as expected,” he wrote. “Skechers will be well on its way to hitting $10 billion in annual revenue.”
Skechers, which also partly relies on Vietnam and China for manufacturing, has invested in distribution centers for retail and digital channels in Peru, the UK, and Japan and is looking to expand its American distribution center. Skechers is also focusing on growing its DTC and digital channels, JHA analysts noted.
DTC has been a strong area of growth for the brand. According to a recent report from NPD Group, Skechers’ brand-owned stores and website were its largest retail channels in 2021.
At the same time, Skechers’ wholesale business has also directly benefitted from a larger industry trend to turn away from retail partnerships in favor of a robust direct-to-consumer model. As Nike, Crocs, and other major brands exit wholesale partnerships, Skechers is picking up wins in these retail channels while maintaining DTC growth at the same time.
According to Skechers CEO Robert Greenberg, recent results will help Skechers reach its goal of $10 billion in annual sales. To do this, the brand will continue to launch new products and marketing campaigns and will also explore brand opportunities in the metaverse.
“We are finalizing plans to enter the metaverse, creating an entirely new opportunity for the Skechers brand,” Greenberg said. “With our creativity, product, operational support and global reach, we expect 2022 to be another record year.”