so Here are 3 major earnings trends this season, from improved traffic to supply chain issues

So Here are 3 major earnings trends this season, from improved traffic to supply chain issues.

Tags : 3 major earnings Trends, 3 major earnings tips, 3 major earnings Trends this season, So Here are 3 major earnings trends this season, from improved traffic to supply chain issues.

     The Skechers store at Times Square in NYC.

The third quarter earnings are in full swing.

Crocs, VF Corporation, Skechers, Deckers, and Columbia Sportswear Company have all reported their latest quarterly results since last week. Despite global supply chain headwinds, these brands posted strong sales and earnings.

As the holiday season approaches, earnings reports have shown resilience, recovery, and a need for brands to adapt to changes.

These are three trends to take away from this week's financial reports.

Tags : 3 major earnings Trends, 3 major earnings tips, 3 major earnings Trends this season, So Here are 3 major earnings trends this season, from improved traffic to supply chain issues.

Supply chain challenges

The global supply chain crisis has affected every footwear company that reported earnings due to materials shortages, factory closings abroad in China, Malaysia, and Vietnam, labor shortages, and congestion at key U.S. ports.

In VF Corp.'s case, which owns Vans, The North Face, Timberland, and Dickies, the impact partly contributed to missed revenue expectations this quarter. The Denver-based company posted revenue growth of 23% to $3.2 billion, missing the $3.5 billion forecast by Yahoo Finance analysts. The VF chairman, president, and CEO Steve Rendle said that all VF brands have experienced product delays, making it difficult to meet demand. Despite a strong sell-through rate, Supreme saw about 30% less inventory around drops.

Adapting to meet demand

Many executives expressed optimism that they would be able to emerge from the situation and enter the holiday season on a positive note despite the challenges.

Crocs reported revenue of $625.9 million last week, an increase of 72.2% on a constant currency basis compared with 2020. To mitigate the impact of supply chain disruptions, the company leveraged air freight and has worked on a solution to "strategically allocate units."

Skechers also mentioned it was trying to move inventory to keep up with demand. Despite challenges, Skechers reported record third quarter sales.

Skechers also mentioned it was trying to move inventory to keep up with demand. Despite challenges, Skechers reported record third quarter sales.

According to Skechers CFO John Vandemore, Skechers will be well positioned to meet consumer demand as supply chain constraints ease.

According to Deckers CFO Steven Fasching, the company is "confident" it will be able to maintain its revenue guidance due to strong demand across its brands, including Ugg, Hoka One One, Teva, and Sanuk. To mitigate supply chain issues, Deckers has shipped more product earlier than usual and has used air freight and a “dual sourcing network to offset factory closures and disruption.”

Timothy Boyle, chairman, CEO, and president of Columbia Sportswear, was also confident in the quarter's performance.

Even with delayed inventory receipts, which impacted U.S. wholesale shipments, good gross margin performance and expense management led to above plan earnings, he said. Early-season Fall 2021 sales have been encouraging.

Foot traffic improvements

Many companies saw foot traffic increase as people eased back into in-person shopping.

Columbia Sportswear CEO Boyle told investors that store traffic levels have improved over the past year, but are still below pre-pandemic levels.

Skechers reported a 43% increase in domestic brick-and-mortar sales on Thursday, as well as higher traffic in stores in the Americas, Europe, Asia, and the Middle East.

Deckers cited the early success of its new Hoka brand stores that opened earlier in the year.

“Once we find the optimum consumer experience and concept for HOKA stores, we will open additional stores in China to serve that monobrand market first, then look at longer-term opportunities in North America and Europe,” said Deckers CEO, president and director Dave Powers.

So Here are 3 major earnings trends this season, from improved traffic to supply chain issues.

Tags : 3 major earnings Trends, 3 major earnings tips, 3 major earnings Trends this season, So Here are 3 major earnings trends this season, from improved traffic to supply chain issues.

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