Skechers: We’re Just Getting Started in E-Commerce
Skechers is putting more muscle behind its tech investments this year.
The footwear brand will re-platform its e-commerce site as part of its strategy to grow its omnichannel reach, a series of initiatives that also includes re-launching a beta version of its loyalty program and revamping its POS system for its existing store base. The POS upgrades will enable the system to have greater functionality and interoperability with the company’s online account.
John Vandemore, CFO, described Skechers in an earnings call as being in the early stages of its e-commerce business, noting, “The economics are still very attractive to us. They look very good to us relative to our overall retail performance.”
He added: “It's something obviously we watch carefully, but we think the runway for both e-commerce as a standalone element of our offering, but also in concert with the stores, which is where … the omnichannel solution for Skechers will come. We think that has great upside opportunity.”
Skechers reported a record year, with $5.22 billion in sales in 2019. It saw Q4 sales of $1.33 billion, up 23.1% from the prior-year period. David Weinberg, executive vice president and COO, attributed the boom to a 13% increase in its domestic business and a 31.2% increase in its international businesses. The U.S. sales were driven by a 60.3% increase in the company’s direct-to-consumer business, with comp-store sales up 10.3% in Q4.
The company is also planning to open new stores. Skechers had 497 company-owned U.S. retail locations at the end of 2019, and it’s planning to open 75 to 85 new stores in its warehouse format by the end of 2020.