Yahoo Finance Skechers finds its footing as sales soar
Footwear retailer Skechers (SKX) got back on its feet in the third quarter after posting better-than-expected results as consumers opted for comfort and casual styles.
Although revenues fell 3.9% to $1.3bn (£1bn) compared to the year before, it was higher than analysts’ expectations of $1.22bn and a 78.3% jump on the previous quarter.
September was the company’s strongest month of the year as people returned to work and schools reopened. Skechers’ men’s and women’s athletic casual footwear and sandal styles saw the strongest growth among its offerings.
It was also boosted by surging demand in China (up 23.9%) and Europe (18.1%), which offered relief to a 4.1% fall in international sales.
The retailer posted a 172% rise in online sales during the period, which partially offset waning performance in the United States market. During the quarter it launched buy online, pick up in store and curb-side pickup services at outlets across America.
READ MORE: Amazon, Nike, and IKEA questioned by MPs over alleged forced labour links
“Our third-quarter sales were a significant accomplishment during a challenging period,” David Weinberg, chief operating officer, said in a statement. “We also saw a return to growth in many markets and a positive sequential trend in the quarter with September being our strongest month.”
Despite the coronavirus pandemic wreaking havoc across the retail landscape, the company opened a flagship store in central London last month, as well as bricks-and-mortar stores in Paris, Tokyo and Colombia.
Gemma Boothroyd, retail analyst at Global Data, said: “A potentially deadly combination of looming lockdowns and store shutdowns may be a fatal hit for the brand in the fourth quarter, given its reliance on footwear, and wholesale channels, coupled with a weak digital presence.
“Skechers’ commitment to overhauling its currently lacklustre website in 2021 could not come sooner for the brand, which is competing with the likes of highly-successful, robust omnichannel digital sales approaches from competitors Nike and Puma.
Watch: What is inflation and why is it important?
