May 19, 2013
Skechers USA (NYSE:SKX) is a footwear company based in Manhattan Beach, California. In addition to producing footwear under a number of Skechers brands such as Skechers Active and Skechers Cali, the company has eight separately marketed "fashion and street" brands targeted at different demographics. Skechers makes money by selling its products to department and specialty stores, sports retailers, and boutiques. However, the company also sells directly to consumers through its website and its own retail stores. These include: 70 concept stores, 72 factory outlets, and 35 warehouse outlets in the US, as well as 14 concept stores and 2 factory outlets internationally. The company earned $1.4 billion in revenue and $55 million in net income in 2009.[1]
Skechers has a stated focus on growing its company-owned retail business, and it increased its number of stores. By expanding its retail sales business, Skechers hopes to boost profit margins by bypassing traditional retailers and charging customers the full retail (as opposed to wholesale) price. If successful, this will also decrease the significance of Skecher's five largest customers, which account for 25% of all sales.[2]
(Read more at Wikinvest
) - Company Overview
- Business Segments[4]
- Skechers Lines
- Fashion and Street Brands
- Business Growth
- FY 2009 (ended December 31, 2009)[1]
- Trends and Forces
- Skechers relies on a small group of customers for 25% of sales
- Certain investors hold the majority of the stock, which could affect issues put to a shareholder vote
- Skechers, already with a strong presence outside the US, has a stated goal to continue expanding internationally
- Competition
- References
