Skechers is continuing to focus on its performance footwear division for future growth opportunities.
On the company’s third quarter earnings call on Thursday, Skechers chief operating officer David Weinberg told analysts that the company see a “significant opportunity” to build on its existing performance business, which includes technical running, golf and pickleball footwear with the addition of new categories that will attract a broader audience.
“We are in the early stages of team sports with a growing roster of Olympians and elite athletes competing in our basketball, soccer, court and cleated footwear globally,” Weinberg said. “Regardless of the sport and skill level, elite or recreational, athletes can trust that with Skechers, they will experience and enjoy comfort that performs.”
Watch on FN
The company’s COO added that raising awareness and creating purchase intent for its lifestyle and performance technologies has been an “integral part” of Skechers’ growth.
“We achieved this through both feature-focused marketing campaigns and by leveraging our strong team of ambassadors and athletes,” he noted. “Earlier this quarter, Snoop Dogg and Philadelphia 76ers basketball star Joel Embiid both achieved golden moments at the Paris Games wearing Skechers. Joel and Team USA earned a gold medal and basketball while Snoop championed at around the world in his Skechers by Snoop Dogg Go shoes.”
Pressed further by analysts on Thursday call about the category growth, Weinberg said that the move into technical athletics is positive for the brand. “We do a lot of our own sales online, direct-to-consumer, so there’s plenty of outlets for it,” the executive said. “This is just the very, very early stages. And I think we still have a ways to go before we become a major player in that field, but we are certainly taking some steps, and it’s certainly working for us, and we’re getting some positive feedback around the world in some places, certainly more than others.”
This comes as the Manhattan Beach, Calif.-based footwear company reported Q3 sales of $2.35 billion, a 15.9 percent increase from $2 billion in the same period last year. Net earnings were $193.2 million and diluted earnings per share were $1.26, compared with prior-year net earnings of $145.4 million and diluted earnings per share of 93 cents.
These earnings came at the top of Skechers’ expectations. The company stated last quarter that it expected to see sales between $2.3 billion and $2.35 billion, with diluted earnings per share between $1.10 and $1.15 in Q3.
Looking ahead, Skechers expects to achieve sales between $2.17 billion and $2.22 billion and diluted earnings per share of between 70 cents and 75 cents in the fourth quarter.
For the full fiscal year 2024, the company raised its guidance, predicting sales to be between $8.93 billion and $8.98 billion, with diluted earnings per share between $4.20 and $4.25. This is up from its previous guidance of $8.88 billion and $8.98 billion in sales and diluted earnings per share of $4.08 to $4.18.
