Skechers USA

Sector: Apparel and footwear Countries of operation: Sells to more than 170 countries including Canada, China and the US Key product categories: Casual lifestyle and performance footwear Annual Metrics [caption id="attachment_148697" align="aligncenter" width="701"] Fiscal year ends on December 31
*Trailing 12 months ended March 31, 2022 [/caption]   Summary Founded in 1992 and headquartered in Manhattan Beach, California, Skechers designs and markets Skechers-branded lifestyle footwear for men, women and children, and performance footwear for men and women under the Skechers Performance brand name. Company Analysis Coresight Research insight: Skechers’ strategic focus on delivering comfort footwear helped the company achieve record sales in fiscal 2021 (ended December 31, 2021). We expect demand for casual footwear to remain high in 2022, and anticipate that it will be another strong year for the company. We expect to see the company continue to strengthen key areas, including its footwear comfort technologies, digital capabilities (both its e-commerce website infrastructure and omnichannel capabilities) and its globalization strategy. The company is also finalizing plans to enter the metaverse, which we believe will present new opportunities for the Skechers brand.

Tailwinds	Headwinds
Consumer pivot toward casual, comfortable footwear Consumer’s growing awareness of sustainability The rollout of vaccination and consumers’ return to in-person events	A challenging overall environment as the pandemic continues to disrupt operations, manufacturing velocity and freight speed Pressure from competitors such as Adidas, Gildan Activewear, NIKE and Puma

Strategy Skechers strategy focuses on the following three key pillars: Deliver comfort, style, innovation and quality at reasonable prices

• Closely pay attention to consumer demand and offer products that center comfort, innovation, style and quality at reasonable prices

Increase focus on more sustainable materials in products and packaging

• Seek out new ways to increase the use of environmentally friendly materials, and regularly conduct assessments to ensure that these items are certified by the Forest Stewardship Council, recycled or ethically harvested

Invest in infrastructure, consumer loyalty and e-commerce to deliver a consumer-centric, omnichannel offering

• Upgrade both offline and online commerce infrastructures. For example, Skechers upgraded the point-of-sale system in North America and the UK in late 2021, and is currently in the process of completing updates in Japan, with Europe to follow, according to the company’s earnings call on February 3, 2022.
• Roll out its new e-commerce sites—the company rolled out e-commerce sites in the fourth quarter of 2021 in Austria, Germany, India and the UK. More markets are planned for 2022, including several in Europe, according to the company.
• Enter the metaverse, which will create an entirely new opportunity for the Skechers brand.

Revenue Breakdown (FY21) [caption id="attachment_148698" align="aligncenter" width="698"] Source: Company reports[/caption]   Company Developments

Date	Development
May 18, 2022	Skechers opens its largest store (2,900 square feet) in Metro Manila, Philippines.
May 12, 2022	Skechers reaches a new milestone for its philanthropic BOBS movement, donating over $8 million to save and help over 1.5 million animals in need in the United States and Canada.
April 13, 2022	Skechers announces a partnership with the DIO Implant LA Open on the LPGA Tour as the tournament’s official footwear sponsor.
April 5, 2022	Skechers appoints Yolanda Macias to the company’s Board of Directors.
March 10, 2022	Skechers files trademark applications to sell virtual goods such as footwear and apparel, setting the foundation for new growth opportunities in the metaverse.
December 20, 2021	Skechers announces that it has transitioned its operations in the Philippines from a third-party distributor to Skechers USA Philippines to maximize the brand’s growth prospects in the region.
December 20, 2021	Skechers announces that Zulema Garcia has been named to its Board of Directors and appointed to serve on the Company’s Audit Committee. In addition, the company announces that four current members—Jeffrey Greenberg, Geyer Kosinski, Richard Rappaport and Tom Walsh— have resigned from the Board, bringing the total number of directors to seven.
December 9, 2021	Skechers partners with Chicago-based Hoop ’Til It Hurts Foundation to celebrate children on and off the court, launching a new line of basketball shoes and after-play slides.
July 21, 2021	Skechers collaborates with kansaïyamamoto, a Japanese fashion brand, on a limited-edition collection.
July 8, 2021	Skechers partners with “Ryan’s World”—a YouTube channel for children aged 2–6 that features Ryan Kaji, his mother, father, and twin sisters—on a children’s footwear collection.

Management Team

• Robert Greenberg—Chief Executive Officer and Founder
• Michael Greenberg—President and Co-Founder
• John Vandemore —Chief Financial Officer

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Source: Company reports