Skechers CFO says ‘things seem to be trending better domestically’

Skechers CFO John Vandemore stated at the Raymond James Institutional Investors Conference, according to a transcript of the event: “Yes, no doubt, the wholesale channel particularly in the U.S. has been challenged for, I’d say, going on a little bit more than a year now. I think the reasons for that ultimately are as varied as the number of retailers we count. And I would make it a point to say that not all retailers have been struggling. There’s been some out there that have done remarkably well. I’d say where we’ve seen challenges, clearly they’ve emanated from situations in part a result of kind of post-COVID supply chain disruption. Most notably, that was evidenced with more inventories than many wanted to be carrying. But there were other issues as well. It feels like things are getting better, but I would obviously consciously acknowledge that a feeling isn’t a great data point. In terms of green shoots, at some point, they have to go past shoot stage. But in terms of what we’re seeing right now, it looks like bookings for the first half of the year are favorable for the first time in a bit. And more importantly, I would say the conversations we’re having with retail partners is more encouraging. I don’t want to, in any way, suggest that retail is out of the woods entirely because I don’t think that’s fair. But things do seem to be trending better domestically. Outside of the United States, I’d actually say the wholesale side of the business has held up pretty well, and if not, in some markets done very well… But outside of the United States, wholesale stands an opportunity to grow much faster than that. And as we said just a second ago, I mean, the DTC, coupled with that international wholesale, that’s really the engine of growth for Skechers.”