Skechers in India


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.



Interesting DJ. I just read this by a contributor at Seeking Alpha about SKX’s presence in India:

Despite being the second largest athletic footwear company in the U.S., Skechers is not among top-rated brands in India primarily due to its late entry and small presence, at least for now. Skechers has rapidly expanded in India and now its store count in the country is 35 with more than 700 multi-brand outlets. The growing popularity of Skech Air Mesh, Men’s Go Run Ultra, Gowalk shoes, and Skechers Bobs among youngster along with kids’ shoes are driving encouraging growth. While multi-brand outlets will provide more exposure to Skechers, the approval for single-brand retail trading of its brands in India will also allow it to expand through franchises in the coming years. That said, Skechers’ low price point against Nike, Adidas and Puma will give the company a much-needed advantage to generate $100 million sales in the next couple of years.

Skechers’ plan to start production in India in the next 2 - 3 years also makes a good sense for several reasons…

Read the whole thing at…

  • Matt