Summer summary of footwear industry players

Amidst the summer season, Crocs, Deckers, and Skechers have reported impressive financial performances that underscore the enduring global consumer quest for comfort, even as the impact of the Covid pandemic and lockdowns wane.

Steady financial results

In this light, during the initial half of their fiscal year 2023, concluded on June 30, American footwear manufacturer Crocs, overseeing the eponymous brand and Heydude, reported revenues of $1.9 billion (€1.7 billion), a significant increase from the $1.6 billion from the previous year. This rise is notably driven by robust sales in the Asia-Pacific region. Within this period, Crocs brand sales, renowned for its customizable plastic clogs, reached $1.48 billion in revenue, marking a 16% surge. In efforts to entice consumers, Crocs has embarked on numerous collaborations, including the recent introduction of a clog model paying homage to the hip-hop group Wu Tang Clan. Furthermore, the brand has unveiled its second partnership with sneaker designer Salehe Bembury.

On the other hand, Deckers, the shoe distributor headquartered in Goleta, California, which includes brands like Hoka, Teva, and Ugg in its portfolio, announced a revenue of $676 million for the first quarter of its fiscal year 2023/24, ending on June 30, reflecting a 10% rise. The group’s flagship brand, Hoka, continues to be a driving force, boasting a 27.4% growth to $420.5 million. Conversely, Ugg, Teva, and Sanuk experienced declines.

Collaborations with artists and athletes

Skechers, too, has experienced a significant presence in current events. After unveiling the initial models of its urban-accented shoe collection designed in collaboration with rapper Snoop Dogg, the American footwear brand is venturing into the realm of football cleats. For this maiden venture, Skechers will outfit one of English soccer’s luminaries, Harry Kane, freshly recruited by Bayern Munich. Kane will don the SKX 01 model and concurrently sign a lifelong contract with Skechers. This announcement aligns with Skechers’ first fiscal semester of 2023, during which it recorded $4 billion in revenue, marking an 8.9% increase. The brand is setting its sights on achieving an annual revenue of $8 billion.

The stock market on the horizon

On another front, the German shoe brand Birkenstock is poised for a potentially imminent entry into the stock market. According to Bloomberg, L Catterton is set to initiate the stock market debut of the German footwear label as early as September, possibly valuing it at over $8 billion (approximately €7 billion).

The luxury French group LVMH-backed private equity firm is reportedly collaborating with Goldman Sachs and JPMorgan on a potential initial public offering in the United States. Recognized for its comfortable sandals, Birkenstock, which also actively engages in collaborations such as those with Dior and Manolo Blahnik, has witnessed a 29% revenue growth, totaling around €1.2 billion ($1.3 billion) last year.