June 12, 2024

Discretionary consumer spending isn’t affecting all footwear companies equally. For Skechers, its wholesale partners seriously boosted sales for the California-based company last quarter.

Skechers saw sales for its wholesale business increase by nearly 10% during its most recent quarterly report. Skechers partners with retailers such as Macy’s and DSW.

Meanwhile Nike, the biggest shoe company in the world by market cap, is working to bring its retail partners back into the fold after cutting ties with many of them over the past several years.

During its March earnings call, Nike CEO John Donahoe said that the company “wasn’t performing at its full potential,” and that it needed to sharpen its storytelling strategy and work with its wholesale partners to “elevate and grow the marketplace.”

Like Skechers, Nike partners with Macy’s and DSW, as well as Dick’s Sporting Goods, and Zalando. Most recently, Nike said it would be laying off employees at Converse in a bid to “better support future growth.” Converse, which sells footwear, apparel, and accessories, has been a subsidiary of Nike since 2003.

For Adidas, the second largest footwear company in the world, finding success in its North American wholesale business has been challenging – even after getting a Yeezy-powered boost earlier this year.

The German brand said its wholesale business grew across all of its markets – except North America. Adidas recorded a 4% revenue decline in the region last quarter, which reflected a double-digit decline in the wholesale channel, it added.

And that, in part, may be why Adidas is planning to offer cheaper versions of its suede Samba sneakers, CEO Bjorn Gulden said during a presentation in Furth, a city near Adidas’ headquarters. He said that the company plans to offer similar versions of the three-stripped sneakers that range between $60 and $80, rather than the typical $100 to $150 price point.

“What we do at the top, 100 [dollars] and higher, we’re bringing that down,” Gulden said. “So, for Foot Locker, for Intersport, and for Deichmann, we’ve also got something to offer.”

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *