Skechers: On the Way to 10,000 Stores

Rhea-AI Summary

Skechers U.S.A., Inc. (NYSE:SKX) celebrates the opening of its 5,000th retail store in Bogotá, Colombia, solidifying its global presence in over 120 countries. The company plans to expand further, with 140-160 new stores expected this year. Skechers emphasizes comfort, style, and innovation in its products, catering to various consumer preferences.

Insights

Market Research Analyst

The opening of Skechers' 5,000th store signifies a significant milestone for the company, reflecting a robust retail expansion strategy. This aggressive global growth could potentially increase market share and brand visibility, which in turn, might influence consumer preferences and drive sales. The expansion into diverse markets such as Chile, Greece, India, Mexico, South Korea, the United States and Colombia suggests a strategic approach to tapping into emerging and established markets alike. The consistency in store experience across continents can strengthen brand identity and customer loyalty, an essential aspect of retail success.

However, it is crucial to monitor the company's operating margins and return on investment for these new stores. Given the current economic climate, with potential headwinds such as inflation and geopolitical tensions, the retail sector faces challenges that could affect profitability. Also, the retail expansion needs to be balanced with the growing trend of e-commerce, as consumer habits continue to shift towards online shopping. Skechers must ensure that their physical retail strategy complements their digital presence to maximize overall sales channels.

Financial Analyst

The announcement of Skechers surpassing 5,000 retail stores may have implications for its financial performance. Investors should consider the capital expenditure associated with this expansion and how it aligns with Skechers' revenue growth and cash flow projections. An increase in the number of stores could lead to a higher volume of sales, but it also entails additional operational costs. It's important to assess whether the new store openings are in line with consumer demand and if Skechers can maintain inventory turnover rates that justify the expansion.

Furthermore, the introduction of proprietary technologies in their products, such as the Skechers Hands Free Slip-ins® and Arch Fit® Technology, indicates a focus on innovation, which could differentiate Skechers from competitors and potentially command higher price points. The impact of these technologies on the company's margins and market positioning will be an area of interest for stakeholders.

Retail Industry Expert

Reaching 5,000 stores worldwide is not just a numerical achievement for Skechers; it showcases the company's ability to scale globally while maintaining brand consistency. This uniformity in branding and customer experience is a significant factor in building a global brand. Skechers' emphasis on comfort technologies also highlights the importance of product differentiation in the competitive footwear market. By focusing on unique comfort features, Skechers can cater to a broad consumer base seeking functional and innovative footwear.

It's also noteworthy that Skechers plans to open an additional 140 to 160 Company-owned stores this year. This expansion strategy might indicate confidence in their business model and in-store sales potential despite the rise of online shopping. However, this strategy requires careful execution to ensure that physical stores complement e-commerce strategies rather than compete with them, especially as the retail landscape continues to evolve.

Global Footwear Brand Opens 5,000^th Skechers Location

LOS ANGELES--(BUSINESS WIRE)-- Skechers U.S.A., Inc. (NYSE:SKX), The Comfort Technology Company® and third-largest athletic footwear brand in the world, announces that it has surpassed 5,000 Skechers-branded retail store locations throughout more than 120 countries. Expanding the reach of Skechers shopping destinations currently operating globally, key openings leading up to the milestone have been in Chile, Greece, India, Mexico, South Korea, the United States, and the 5,000^th store in Bogotá, Colombia.

5,000th Skechers-branded retail store in Bogotá, Colombia. (Photo: Business Wire)

“Every Skechers store brings valuable engagement with consumers to build an increased awareness for our brand,” said Michael Greenberg, president of Skechers. “Skechers stores are the best place for fans to experience the signature comfort, style and innovation of our products—and when they do, they’re loyal for life. It started in 1995 with the original Skechers store opening in Manhattan Beach near our corporate offices. From there, we opened our first international store in Japan, the 100^th in Times Square, the 3,000^th in China and now our 5,000^th store in Colombia. Every location offers the same look and feel to carry the Skechers brand with consistency across six continents. With an additional 140 to 160 more Company-owned stores planned this year and hundreds of stores opening annually with our partners, we are on the road to 10,000 Skechers stores.”

From fashion styles to lifestyle product and performance shoes for sport enthusiasts, Skechers’ offering is enhanced with the Company’s signature comfort innovations—including its patented Skechers Hands Free Slip-ins® Technology, Skechers Arch Fit® Technology, Skechers Max Cushioning® Technology, Skechers Hyper Burst Pro™ Technology, Skechers Air-Cooled Memory Foam®, Skechers Relaxed Fit® Technology, and Skechers Performance FitKnit® Technology.

About SKECHERS U.S.A., Inc.

Skechers U.S.A., Inc. (NYSE:SKX), a Fortune 500® company based in Southern California, designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. Collections from The Comfort Technology Company® are available in 180 countries and territories through department and specialty stores, and direct to consumers through digital stores and approximately 5,170 Company- and third-party-owned physical retail stores. The Company manages its international business through a network of wholly-owned subsidiaries, joint venture partners, and distributors. For more information, please visit about.skechers.com and follow us on Facebook, Instagram and TikTok.

This announcement contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include, without limitation, Skechers’ future domestic and international growth, financial results and operations including expected net sales and earnings, its development of new products, future demand for its products, its planned domestic and international expansion, opening of new stores and additional expenditures, and advertising and marketing initiatives. Forward-looking statements can be identified by the use of forward-looking language such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” “project,” “will,” “could,” “may,” “might,” or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements. Factors that might cause or contribute to such differences include the disruption of business and operations due to the COVID-19 pandemic; delays or disruptions in our supply chain; international economic, political and market conditions including the effects of inflation and foreign currency exchange rate fluctuations around the world, the challenging consumer retail markets in the United States, and the impact of wars, acts of war and other conflicts around the world; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers; decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers, especially in the highly competitive performance footwear market; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in Skechers’ annual report on Form 10-K for the year ended December 31, 2022 and its quarterly reports on Form 10-Q in 2023. Taking these and other risk factors associated with the COVID-19 pandemic into consideration, the dynamic nature of these circumstances means that what is stated in this press release could change at any time, and as a result, actual results could differ materially from those contemplated by such forward-looking statements. The risks included here are not exhaustive. Skechers operates in a very competitive and rapidly changing environment. New risks emerge from time to time and we cannot predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. Moreover, reported results should not be considered an indication of future performance.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240215888406/en/

Jennifer Clay

SKECHERS U.S.A., Inc.

jennc@skechers.com

Source: Skechers U.S.A., Inc.

FAQ

How many Skechers-branded retail store locations has Skechers surpassed?

Skechers has surpassed 5,000 Skechers-branded retail store locations.

In how many countries does Skechers operate its retail stores?

Skechers operates in more than 120 countries with its retail stores.

What are some key locations where Skechers has opened stores leading up to the milestone?

Key openings leading up to the milestone have been in Chile, Greece, India, Mexico, South Korea, the United States, and the 5,000th store in Bogotá, Colombia.

What are some signature comfort innovations offered by Skechers?

Skechers offers comfort innovations such as Skechers Hands Free Slip-ins® Technology, Skechers Arch Fit® Technology, Skechers Max Cushioning® Technology, Skechers Hyper Burst Pro™ Technology, Skechers Air-Cooled Memory Foam®, Skechers Relaxed Fit® Technology, and Skechers Performance FitKnit® Technology.

Who is the president of Skechers?

Michael Greenberg is the president of Skechers.