Rocking and Rolling

Skechers marked its 30th anniversary in record-breaking fashion across all facets of its business.

SKECHERS SURELY DIDN’T get into any Covid-related pickles in 2022. Quite the contrary, as the company celebrated its 30th anniversary with an array of successes. Highlights included record sales ($7.4 billion on growth of $1.1 billion); surpassing 4,500 stores, including new flagships in Madrid, Rotterdam, and Dublin; expanding on its tagline as The Comfort Technology Company with the launch of Skechers Hands Free Slip-ins; and pushing the performance envelope with the debut of Skechers Viper Court, the first-ever Pickleball specific footwear, now endorsed by top pros Tyson McGuffin and Catherine Parenteau.

All that (and plenty more) in the face of pandemic challenges are nothing short of “remarkable,” says Skechers president Michael Greenberg. “Our annual sales record and many achievements were the result of four record quarters, our flexible and dedicated global team, our extensive distribution network, and we believe the most comfortable footwear available,” he says. “All told, we’re very pleased with our ongoing progress toward reaching our goal to surpass $10 billion in revenue by 2026.”

To achieve such growth requires firing on all cylinders. That includes consumer-facing products, stores, and marketing, as well as various behindthe-scenes mechanisms, including completion of its LEED-certified Gold, 2.6-million-square-foot North American distribution center. In addition, phase two of the company’s China distribution center expansion began with a goal of completion in 2024, and ground was broken on phase one of a 1.1-million-square-foot distribution center outside Mumbai, India, with a goal of 660,000 square feet fully operational by the middle of this year. Skechers also opened and expanded into new facilities in several countries in South America. Last but not least, the company finished the expansion of the first phase of the Skechers Corporate Headquarters and Design Center. “This expansion allowed us to showcase our product to domestic and international partners over September and October,” Greenberg says. “When complete by 2026, the center will be more than 330,000 square feet and developed to achieve LEED Gold certification.”

On the product front, Skechers continued to focus on its core design principles: comfort, innovation, style, and quality—all at a reasonable price. “These tenets are thought about in every category, collection, and shoe we develop,” Greenberg says. “With this in mind, we’re able to deliver the most comfortable, best-looking, and relevant footwear available.” That effort, in 2022, spanned casual items, like Hands Free Slip-ins for men, women, and kids; performance items, such as Pickleball shoes; and fashion styles, such as Skechers Uno, which have been on runways and influencers around the world. There were also popular collabs, including with Tokidoki and Demon Slayer.

Skechers also remained committed to its mantra of “untold equals unsold” with splashy marketing campaigns throughout 2022. It kicked off in February with two Super Bowl spots featuring Willie Nelson. Other ads over the year featured celebrities Amanda Kloots, Martha Stewart, and pop singer Chesca. In addition, endorsers Matt Fitzpatrick and Brooke Henderson both won major championships wearing Skechers Go Golf footwear, and the company became the official footwear sponsor of the Professional Pickleball Association Tour. The year, of course, was not without challenges. Greenberg says Skechers experienced logistical and freight issues that have impacted the entire industry since the pandemic, which created inventory congestion throughout the distribution channel. What’s more, Skechers’ annual growth was offset by a 15 percent sales decline in China due to Covid restrictions. Fortunately there is improvement on both fronts, according to Greenberg. “Many of the supply chain issues have started to moderate, and the recent elimination of the zero-Covid policy should be positive for our business in China as consumer shopping moves closer to normalized levels through 2023,” he says.

Greenberg credits the entire team for overcoming the obstacles faced in 2022. “We truly have the most talented, passionate, dedicated team in the world,” he says. “None of this would be possible if it weren’t for those who work at our corporate headquarters and in distribution centers, our sales teams in the field, and our retail associates throughout our global network of Skechers stores.”

Greenberg believes that the team’s performance is proof that Skechers’ strategy for growth is solid. “This milestone year is just the beginning,” he says. “In many ways, the brand is in its infancy, no matter how big our global presence feels, no matter that we’re now the third-largest [footwear] brand in the world, and the top brand in markets like India and across much of the Middle East.” Greenberg adds, “The potential for growth for the next 30 years is incredible. We have so much more ahead of us and beyond our $10 billion goal by 2026.”

In the meantime, Greenberg is proud of all that Skechers has achieved and the team making it all possible. “Every moment that went into achieving our record annual revenues is due to the flexibility, creativity, and dedication of the entire Skechers organization,” he says, citing 2022 as one of the most turbulent economic environments in the company’s history. “Our commitment and ability to execute in the face of these headwinds and to achieve recognition—such as Footwear Plus’s Company of the Year for the tenth time—is due to this spectacular organization. I’m most proud to see the most talented team in the world creating, building, and executing. To see that vision come to life—be it New York, London, Madrid, etc.—there’s nothing like it.” —Greg

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