Skechers plans to double its logistics footprint
Skechers is building up its fulfillment capabilities after a surge in online sales.
The shoe brand also plans to more than double its warehouse and logistics ahead of the pandemic by next summer, the Wall Street Journal reported.
Sheckers owned and operated approximately 4 million square feet of space before the pandemic, and is already on track to meet its goal, increasing its distribution space to 5.5 million square feet by the end of the last year.
The company was already expanding its footprint before last year, but has suspended expansions as the pandemic disrupted supply chains in India.
CFO John Vandemore said the company has seen higher than expected demand in recent months.
“What we’ve seen is a tremendous rebound in demand, which is really putting us back on the growth trajectory we were on before the pandemic,” Vandemore told The Journal. “Once we were convinced that we were going to return to our growth trajectory, we would absolutely need this capacity. “
The company reported sales of $ 1.66 billion in the second quarter of this year, more than double its sales compared to the same period last year. Net income was $ 137.4 million for the quarter, compared to a net loss of $ 68.1 million in the second quarter of last year.
Skechers will have a lot of competition for the industrial space, as other retailers will look to expand their e-commerce capabilities as well.
Amazon alone has leased millions of square feet of warehouse space across the country in the past year.
[WSJ] – Dennis Lynch