Skechers considering IPO for Asia business
Manhattan Beach, California-based lifestyle and footwear company Skechers USA Inc. is reportedly weighing up different strategic options for its business in Asia, including a possible initial public offering on the Hong Kong stock exchange.
According to a Business of Fashion report citing “people with knowledge of the matter,” the company has undertaken preliminary talks with advisors in order to evaluate a range of possibilities for its Asia business.
A Hong Kong IPO could raise around $1.5 billion, said the sources, and could involve Skechers buying out its Asian joint venture partners. The company’s current joint ventures in the region include Skechers China, launched in partnership with Luen Thai Enterprises in 2007, as well as units in South Korea and Southeast Asia.
BoF’s sources emphasized that deliberations are still at an early stage and that Skechers may decide to pursue other strategic alternatives.
Skechers reported sales of $1.55 billion for the third quarter ended September 20, 2021, a figure which represented 19.2% growth compared to the same period in the previous year, but which came in under the company’s own expectations of between $1.60 billion and $1.65 billion.
Growth in the company’s international wholesale segment was driven by year-over-year increases of 10.0% in China and 67.5% in India.
Last year, Skechers reported annual revenues of $4.6 billion, with almost 60% of this figure accounted for by sales outside of the United States. China alone represented $924.5 million, or approximately 20%, of the company’s total sales in 2020.
Skechers currently operates in more than 170 countries around the world and has a network of over 4,000 stores, including both company-operated locations and stores owned by third parties.
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