Audio Sources - Full Text Articles

Skechers says slip-on shoes will ‘hit in full force’ later this year as it joins Kizik and Nike in the race to be the leader in laceless sneakers

Skechers expects its slip-in sneakers to be a hit.Skechers expects its slip-in sneakers to be a hit.

Skechers/Business Wire

  • Skechers on Thursday reported record quarterly sales.
  • The earnings report slightly disappointed Wall Street.
  • Executives expect “incredibly strong” demand for slip-on shoes this year.

Kizik and Nike aren’t the only brands racing to get laceless sneakers to store shelves.

Skechers reported record quarterly sales on Thursday, and executives said that despite some “recessionary signals” in the marketplace, they expect a strong second half, buoyed by robust demand for its new slip-on shoes. 

“Early indications have been nothing but incredibly strong from a consumer perspective,” Chief Financial Officer John Vandemore said on a conference call with stock analysts.

Skechers already sells several models of slip-on sneakers.

Utah-based Kizik and industry leader Nike also are investing in slip-on technology in order to meet rising demand. Nike is an investor in Kizik and recently introduced a slip-on Jordan

Skechers remains hot with consumers. For the quarter, it reported a record $1.88 billion in sales, a 13.5% increase. But the company’s stock dipped slightly after the earnings report, likely because of an outlook that was short of expectations.

The company expects $1.8 billion to $1.85 billion in first-quarter revenue, below the $1.95 billion previously expected by Wall Street analysts, according to Factset. It expects 55 cents to 60 cents in earnings per share, also below the 86 cents previously expected by analysts. 

“This year will really become, again, a tale of two halves,” Vandemore said. “The first half is where we’re seeing the challenges. The second half is where we see a ton of opportunity.”

(On the call, executives and analysts used the word “half” 43 times, according to a preliminary transcript compiled by AlphaSense/Sentieo.) 

Among the challenges in the first half: Covid-related problems in China and a US market still dealing with too much inventory and shipping chain hiccups. 

Among the opportunities in the second half: slip-on shoes. 

“We have … some continuing product introduction activity that’s going to, I think, really propel where the market goes for Skechers in the back half of the year, most notably our slip-in products,” Vandemore said. “That’s really when they begin to hit in full force in the market.” 

Read the original article on Business Insider