Skechers announced its entry into the technical basketball shoe category by launching two mid-top styles—SKX Resagrip and SKX Float—and signed endorsement deals with Julius Randle of the New York Knicks and Terance Mann of the Los Angeles Clippers.
News of the company’s pending entry into performance basketball came on Monday with reports of an imminent signing by Skechers of Philadelphia 76ers star Joel Embiid. Embiid wore a Skechers shoe for the first time during 76ers practice Wednesday with the brand’s performance staff on-site while he tested the sneaker, sources told The Athletic. The signing of Embiid, under contract with Under Armour, is still expected to go through.
Skechers basketball footwear collection will be available next week at skechersbasketball.com and select Skechers retail stores in North America and at retailers and Skechers stores in the Philippines and China. Skechers will release new colors later this fall and low-top versions of both styles in Spring 2024.
“Along with our recent entry into the soccer business, Skechers now offers high-performance footwear for athletes competing in the two biggest sports on the planet,” stated Michael Greenberg, president of Skechers. “This is the start of a long-term investment in basketball with more player partnerships, which is essential for our growth strategy and vision. We’re launching in the three largest stand-alone basketball markets—the U.S., China and the Philippines—with expansion to more regions expected in the future.”
The signings of Randle, who had been with Nike, and Mann, previously with Anta, were also cited in the Atlantic report. Randle and Mann have worn the sneakers during practice and preseason games.
“Following our road map for success as a breakthrough brand in running, golf, pickleball, and global football, we’re leveraging the insight and feedback of pros like Julius Randle and Terance Mann to authenticate our position as a performance brand with the best basketball shoes on the court,” stated Greg Smith, VP of product development and merchandising for Skechers Performance. “We’re entering the sport with two players representing a cross-section of the NBA, from an all-star veteran in the Eastern Conference to a rising star right here in Los Angeles.”
In a note, Jim Duffy, an analyst at Stifel, said he believes Skechers’ entrance into performance basketball footwear represents a “market-expanding category opportunity” for the brand.
“Skechers’ playbook of offering attractively priced, quality products through wide distribution globally supports the opportunity in the $6bn basketball footwear market,” he said.
Duffy noted that Nike dominates basketball footwear with as much as a 90 percent domestic share controlled by Nike basketball offerings and its Jordan Brand. Challenger brands include Adidas, Puma, Under Armour, and Chinese brands Li Ning and Anta. Puma re-entered basketball in 2018, and New Balance did so in 2019, with both companies seeing an opportunity to boost their credibility in the streetwear space.
Duffy said Skechers has an advantage against some competitors with its “broad global distribution and product value,” and he suspects Skechers will sell its basketball products at about a 20 percent discount relative to established competitor products.
He noted that the basketball entry follows Skechers’ moves into golf, pickleball, baseball, and, more recently, soccer with the signing of FC Bayern Munich striker Harry Kane.
Other athletes endorsed by Skechers include golfers Matt Fitzpatrick and Brooke Henderson, pickleball pros Tyson McGuffin and Catherine Parenteau, and Dodgers pitcher Clayton Kershaw.
Duffy wrote, “When compared to these businesses, basketball is the most established market. We see an opportunity for Skechers to gain market share at the lower price end of the market with product featuring good price/value equation.”
With international accounting for more than half of Skechers’ sales, Duffy sees a robust international opportunity for the brand with basketball. Basketball is more popular than the NFL in international markets. Duffy wrote, “We view international opportunities as sound justification for the investment and expect the opportunity scales over multiple years, potentially supporting a low single-digit mix of consolidated revenue over time.”
Duffy said Skechers has the potential to establish a $200 million basketball business within five years.
Matt Powell, an analyst and long-time follower of the sneaker marketplace, noted that more moderate price points had driven the “mini-revival” of performance basketball, with Skechers’ entry coming at an opportune time.
“Skechers is the king of moderate pricing. Also, the big brands have pretty much ignored the mid-market retailers when it comes to basketball. This is a big miss. Skechers is a very important brand in mid-market,” Powell said.
Photo courtesy Skechers
