Skechers sees explosive growth in international sales over the last decade
- Skechers' international sales increased significantly from 34% in 2014 to 62% in 2024, showcasing strong global growth.
- The company's direct-to-consumer and wholesale sales also experienced notable year-over-year growth, contributing to its overall revenue increase.
- This trajectory supports the conclusion that Skechers is well-positioned for ongoing success in the competitive footwear market.
In the United States, Skechers has positioned itself as the third-largest footwear company globally, demonstrating resilience and growth within the competitive consumer goods market. From 2014 to 2024, the company's international sales expanded drastically, rising from 34% of total sales to 62%, reflecting a compounded annual growth rate of 21%. This growth trajectory was further supported by an impressive 12% year-over-year increase in international sales last year. The American company has also successfully grown its market share in domestic clothing and footwear expenditures, demonstrating a rise from 0.41% in 2014 to 0.65% in 2024. Contributing factors to this success include consistent revenue and profit growth, enhanced customer satisfaction, and a strategic focus on both direct-to-consumer sales and wholesale distribution channels. In 2024, direct-to-consumer sales grew by 11% year-over-year to reach $3.9 billion, while wholesale sales increased 13% year-over-year to $5.1 billion. Additionally, Skechers reportedly boasts a favorable risk/reward profile fueled by high customer satisfaction ratings and growing market share. The company has seen a consistent rise in return on invested capital (ROIC), anticipated to increase from 11% in 2014 to around 14% in 2024. Despite their non-dividend paying status, Skechers has managed shareholder returns through share repurchase strategies, accumulating $694 million in repurchases from 2018 to 2024. Nonetheless, the discussion surrounding the efficacy of capital return strategies remains ongoing, with critics suggesting that the high ROIC warrants further investments rather than repurchase and dividend plans. Furthermore, Skechers' Core Earnings saw an annual growth of 17% from $141 million in 2014 to projected earnings of $654 million in 2024, highlighting the company's robust financial health. While external pressures, such as tariff impacts and macroeconomic challenges, create uncertainties, Skechers appears primed for continued growth, pushing the boundaries of its presence in both domestic and international markets while emphasizing product quality and customer satisfaction.