Coming off a Q1 where its U.S. business declined 6.3 percent, dragged down by a 10.9 percent drop in wholesale revenues, Skechers’ senior executives forecast mid-teen and mid-single digit topline growth respectively for its international and Direct-To-Consumer segments in Q2 and in FY19. The company experienced 3.3 percent improvement in its domestic DTC business in Q1.
Overall, Skechers reported Q1 revenues of $1.28 billion, up 2.1 percent year-over-year and a new quarterly record for the company as international sales rose 9.3 percent (15 percent on a constant currency basis).
“International continues to be the bright spot, both from a growth perspective and the opportunities we have to grow our brand and to expand our reach beyond the current 57.8 percent of total sales,” COO David Weinberg told analysts last week.
Countries such as China, India and Mexico are seen as big growth markets for the brand. At the end of Q1, Skechers had 900 freestanding stores in China, 2,399 points of sale in the market as it posted a 32 percent gain in online sales for the market. Skechers recently converted its India operation to a subsidiary, adding an ecommerce component and increasing its own door count to 61 as it tightens its focus on the market of 1.3 billion. Closer to the U.S., Skechers is currently operating 70 stores in Mexico where the brand’s market share is forecast to grow significantly in coming years.