In its second-largest acquisition, Amazon buys the company for $970 million.
Skechers reported e-commerce sales of $4.1 million for the first quarter of fiscal 2008, a 21% increase vs. $3.4 million in the prior year quarter. But the web still accounts for only 1% of revenue.
Web sales at Skechers USA Inc. grew at triple the rate of store sales for the first quarter.
Skechers reported e-commerce sales of $4.1 million for the quarter ended March 31, 2008, a 21% increase vs. $3.4 million in the prior year`s quarter. The athletic and casual footwear manufacturer and retailer’s retail segment, which includes sales at 179 U.S. and 16 international locations, grew 6.7%, from $56.8 million to $60.6 million.
Skechers, No. 362 in the Internet Retailer Top 500 Guide, attributed the sales increase to successful new designs and styles for in-season products, including casual and sport styles, which lifted international and domestic wholesale sales. Net sales also increased 5.6% within the domestic retail segment because of a net increase of 35 stores, the company says, which offset the effect of negative comparable store sales.
For the quarter, Skechers’ comparable store sales in its domestic retail stores declined 6.2% because of what it termed the challenging domestic retail environment, but the company tallied positive comparable store sales of 12.4% in its international retail stores.
Overall sales for the quarter were $384.9 million, up year-over-year by 11.6% vs. $344.9 million in Q1 of 2007. E-commerce accounted for only 1% of revenue in the reported and prior year quarters, while the retail segment accounted for 15.7% in 2008. Domestic wholesale revenue was $220.8 million, or 57.4% of overall revenue and international wholesale revenue was $99.5 million or 25.9% of total sales.
Laura Christine, vice president, direct marketing & e-commerce at Skechers is a featured speaker at the Internet Retailer Conference & Exhibition, June 9-12 in Chicago in a session titled Manufacturers Enter the E-Retailing Mainstream.