Skechers sees no structural impediment to reaching an operating margin in the mid-teens in the long term, compared with the 10 percent margin reached in 2019. The company told investors at a “Life After Covid” conference organized by Morgan Stanley that its centralized product development, management and marketing structure will make foreign markets “margin-accretive” as their contribution to revenues continues to rise. Sales outside the U.S. represented 58 percent of the total turnover in the first quarter of this year. After the brand’s success in China, Skechers sees new growth drivers in Southeast Asia, South America and both developed and developing markets in Europe. The growth will be aided by an expanded product range and further investments in omnichannel capabilities. Besides its accretive effect on gross margins, the growing direct-to-consumer (DTC) business will also provide CRM data to fine-tune product development and marketing strategies.

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