Skechers China growth drives optimism for global sales recovery
Skechers China sales growth has fuelled optimism for the shoe brand after it reported a huge slump in sales for the June quarter due to stores being closed in other regions under Covid-19 lockdowns.
The company reported group-wide sales of US$729.5 million, a 42 per cent year-on-year decrease, and a net loss of $68.1 million during the three months to June 30.
But sales in China rose 11.5 per cent and sales on Skecher’s company-owned online store soared by 428.2 per cent as buyers in some markets, unable to shop at physical stores, moved online.
“Skechers, like most businesses around the world, has never faced a more challenging time than during the pandemic, which caused the closing of nearly every market worldwide,” said CEO Robert Greenberg. “Covid-19 continues to be a serious concern globally, and the health and welfare of our team, partners and customers remain our number one priority.”
Skechers stores were closed for varying periods of time in almost every market outside Asia.
“However, we remain optimistic about the early signs of recovery we witnessed during the quarter, including a return to growth in China, consistent improvement each month in some markets outside of China,” said COO David Weinberg.
“While every country’s recovery has been unique, we began to see a similar recovery trend, first reflected in China and now extending into other markets globally including Australia, Germany, South Korea and Taiwan. We believe the positive sales trends in markets that have reopened, as well as the efficiency with which we addressed the pandemic challenges, are strong indicators that when the global health crisis stabilises, Skechers will remain a global footwear leader.”
Greenberg said the company was a “resilient organisation” driven by a dedicated and flexible team determined to do whatever it takes to not only survive but position itself for a return to profitability.
“Now, with more than 90 per cent of our Skechers stores safely re-opened and some markets in the early stages of recovery, we believe that we will remain a brand consumers and retailers trust to deliver comfort, quality, and style. We are hopeful that global economies will continue to improve, and as they do, we will continue to operate efficiently and judiciously during this pandemic,” he said.