“Skechers” shoe company has been chasing after consumers that Nike did not pursue, emphasizing comfort over fashion, and highlighting “we are unique participants,” thus achieving great success.
Since successfully listing on the New York Stock Exchange in 1999, Skechers has steadily grown into one of the most popular global athletic leisure shoe brands. Today, Skechers’ sales network spans across 180 countries and regions globally, with annual sales exceeding $8 billion.
In June 2024, Skechers once again made it to the Fortune 500 list, showcasing its high market value and global influence.
According to The Wall Street Journal, in 2023, the most valuable NBA player and the top scorer in European football were not sponsored by Nike or Adidas; they were wearing Skechers shoes. This shoe company, known for its hands-free styles, has gained attention and become the third-largest shoe company in global sales. Although it has not relied on flashy status to stimulate demand for the brand, it is projected to reach a net income of $10 billion in 2026.
Skechers achieved this by capturing market segments ignored by competitors. They mainly focus on creating comfortable shoes for retirees and affordable shoes for children, a strategy quite different from major brands.
Skechers’ styles are not extravagant. Executives state that they strive to make the shoes both comfortable and affordable. Their children’s styles are priced around $50, with the brand not selling limited edition shoes priced in the hundreds of dollars.
About two-thirds of the company’s sales come from outside the United States. Skechers doesn’t operate its own stores but follows a franchise system. Executives claim that their scale in India surpasses Nike’s.
“People try to categorize us into Nike or Adidas models, but that doesn’t work,” said John Vandemore, Skechers’ CFO, in an interview. “We are just a different participant.”
In recent years, Skechers has also ventured into producing soccer and basketball shoes, securing endorsements from some superstars. In 2023, the company enlisted former Bayern Munich forward Harry Kane and signed a deal with Philadelphia 76ers basketball star Joel Embiid last year. Skechers COO David Weinberg stated, “We signed them because the market wasn’t taking care of them.”
The company’s report shows sales of $8 billion in 2023, up from about $1.8 billion a decade ago. Investors have taken notice. Over the past five years, Skechers’ stock price has nearly doubled, while Nike and Adidas have seen stock prices drop by more than 25%.
Established in 1992, Skechers hired celebrity endorsements, including Britney Spears, in the early 2000s and introduced Shape-Ups walking shoes in the early 2010s, achieving some success.
Some believed Skechers might be a passing fad at that time, but David Weinberg, the company’s global COO, said, “Today, no shoe, category, customer, or geography can determine our success.” Skechers has evolved into a fully developed company.
In recent years, Skechers has shifted towards the athletic competitive field to fill the void left by leaders like Nike and other companies, as during the pandemic, Nike decided to withdraw from collaborations with many retailers catering to low-income consumers and reduced styles priced below $100, boosting Skechers’ business.
Executives at Skechers affirm that they remain more interested in creating comfortable shoes rather than signing the most expensive athletes. They even dedicate a section on the company’s website to display their shoe comfort technology.
Maria Afsharian, a real estate broker in New Jersey, used to only wear sandals because she couldn’t find sports shoes that wouldn’t hurt her heels. Last year, her spine masseuse recommended Skechers, and now she is a loyal fan of the brand.