This article mentions Skechers ambitions for India. While it emphasizes the expansion of sales and production in India, it highlights international expansion overall.
“We are looking at doubling our business and start manufacturing here in the next two years. We are still early in the process, but in the next 2-3 years it is incumbent on us to start manufacturing here,” David Weinberg, Chief Operating Officer and Chief Financial Officer of Skechers…
The primary takeaway I have from this article is Skechers desire to be more independent in India, not having to rely on partners to expand the business.
With a relatively smaller portion of the business done overseas and high expected growth there, Skechers
What’s interesting is the references made to growth:
“International business is about 35 per cent of our $3 billion turnover globally. It is the fastest-growing piece and we expect that it will have grown by over 45 per cent this year,” Weinberg said.
Skechers anticipates its global turnover would hit $5 billion from the current $3 billion in 5 years, and that business outside of US would be well in excess of 50 per cent.
If just over a third of their business is growing really fast, how can it be that they expect only 67% growth ($3B to $5B) over the next 5 years? Domestic growth would have to stop in order for this to happen.
It’s kind of nice to see the stock price down and stated expectations low. It continues to give us an opportunity to buy shares at a reasonable price. If they achieve moderate success with their international expansion and continue to do well in the US, they should blow past these expectations, which would result in nice price appreciation from here.