Skechers to Relocate to Expanded Distribution Center in Liège to Support the Brand’s Growth in Europe

Rhea-AI Summary

Skechers (NYSE:SKX) announced plans to relocate its European Distribution Center (EDC) to a larger 200,000-square-meter facility in Liège, Belgium. The move, scheduled to begin in 2028, aims to support the brand's strategic expansion across Europe following a 30% sales increase in Q3 2024. The new state-of-the-art facility will be located near Liège Airport and major highways, featuring BREEAM: Excellent certification and renewable energy features. The expansion is expected to increase shipping capacity, improve operational efficiency, and create additional employment opportunities. The EDC serves Skechers' European operations, including e-commerce, retail stores, and third-party retailers.

Positive

• 30% sales increase in EMEA region for Q3 2024
• Expansion of distribution capacity with new 200,000-square-meter facility
• Strategic location near major transportation hubs
• Expected creation of additional jobs
• Improved operational efficiency anticipated

Negative

• Significant capital investment required for new facility
• Potential operational risks during 2028 transition period

Insights

Operations & Logistics Expert

The planned 200,000-square-meter distribution center represents a significant operational upgrade for Skechers' European presence. The strategic location near Liège Airport and major highways will optimize distribution efficiency. With EMEA sales showing a robust 30% growth in Q3 2024, this expansion is well-timed to support increasing demand.

The facility's BREEAM: Excellent design certification and renewable energy features align with modern sustainability requirements. The gradual transition starting in 2028 demonstrates careful operational planning to maintain business continuity. This expansion positions Skechers to strengthen its supply chain capabilities and support its status as the world's third-largest footwear brand.

Market Research Analyst

The European market expansion strategy reflects strong brand momentum in the EMEA region. With over 500 Skechers stores and growing e-commerce presence, this infrastructure investment supports a multi-channel distribution approach. The Q3 2024 sales growth of 30% in EMEA indicates significant market penetration and consumer demand for Skechers' comfort technology products.

The facility's increased capacity and efficiency improvements will enhance competitive positioning against other major footwear brands in Europe. This move demonstrates long-term commitment to the European market and confidence in continued growth potential.

BRUSSELS--(BUSINESS WIRE)-- Skechers, The Comfort Technology Company^®, announced the planned relocation of its European Distribution Center (EDC) operations to a larger, single-structure, state-of-the-art facility in Liège to strategically expand its business throughout the continent.

Skechers will relocate its European Distribution Center to a 200,000-square-meter facility in Liège to support the brand’s strategic expansion across Europe. (Photo: Business Wire)

“Over nearly three decades of business in Europe, Skechers has established strong brand awareness and enthusiastic support for our innovative comfort technologies. The demand in EMEA for our product across channels and regions led to a 30 percent sales increase in the third quarter of 2024,” said David Weinberg, chief operating officer of Skechers. “We expect our momentum will continue as we develop more styles and make them available where consumers want to shop in Europe—be it at our more than 500 Skechers stores, e-commerce sites or our network of third-party retailers. We believe increased infrastructure and personnel will be required at our European Distribution Center as the territories serviced by the facility are expected to play a key role in our anticipated near- and long-term growth.”

“Our planned 200,000-square-meter, state-of-the-art logistics center in Belgium will allow us to increase the volume of goods shipped to meet our expected demand in the coming decade while substantially improving efficiencies—a win for consumers, customers and our workforce,” added Paul Galliher, senior vice president of global distribution. “We look forward to scaling up our operations as we launch a new era for Skechers, the third largest footwear brand in the world.”

To ensure seamless, uninterrupted operations, the Skechers EDC will start its gradual move in 2028 to the new site—which will be located minutes from Liège Airport, adjacent to major highways and just 12km from the Company’s current center. The building is being designed to be BREEAM: Excellent, and will include renewable energy features. Skechers is anticipating the need for additional employees at the facility with the planned expansion of its business and logistic capabilities.

“Skechers has been a valuable partner in Wallonia since 2002, and its announcement to relocate its European distribution center to Liège confirms Wallonia's status as a major logistics hub in Europe. This is also good news for the economic development of our region and is expected to create direct and indirect jobs,” stated Minister of Economics HE Pierre-Yves Jeholet.

Added Yves Weerts, owner of Weerts Logistics: “Skechers will grow its current partnership with Weerts Group to develop the new site and building; it is a successful continuation of the collaboration that we have developed with Skechers over the past years.”

The EDC distributes product to Skechers-managed businesses throughout Europe, including direct to consumers through e-commerce and Skechers retail stores, third-party retailers and the Company’s regional distribution partners. The expansion is the latest advancement in Skechers’ extensive global distribution network, which includes a regional U.K. facility and centers in North and South America, China, Japan and India.

About Skechers U.S.A. Benelux B.V. and Skechers U.S.A., Inc.

Skechers U.S.A. Benelux B.V. is a subsidiary of Skechers U.S.A., Inc. (NYSE:SKX), The Comfort Technology Company^® based in Southern California. Skechers designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. The Company’s collections are available in 180 countries and territories through department and specialty stores, and direct to consumers through skechers.com and approximately 5,300 Skechers retail stores. A Fortune 500^® company, Skechers 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 YouTube.

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, 2023 and its quarterly reports on Form 10-Q in 2024. 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/20241112808954/en/

Media Contact:

Jennifer Clay

Skechers Global

jennc@skechers.com

Team Lewis

Belgium Media

Mailien Nguyen

mailien.nguyen@teamlewis.com

+32472384951

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

FAQ

When will Skechers (SKX) relocate its European Distribution Center to the new Liège facility?

Skechers will begin its gradual move to the new Liège facility in 2028.

How large is Skechers' (SKX) new European Distribution Center in Liège?

The new facility will be 200,000 square meters in size.

What was Skechers' (SKX) sales growth in EMEA for Q3 2024?

Skechers reported a 30% sales increase in the EMEA region during the third quarter of 2024.

How many Skechers stores are currently operating in Europe?

According to the press release, Skechers operates more than 500 stores in Europe.