Skechers USA Inc.'s Chief Financial Officer David Weinberg told Dow Jones Newswires that the company expects an uptick in toning sales during the holidays without having to resort to excessive discounting. The interview came ahead of an investor meeting set for Friday, according to Dow Jones.
The article noted that Skechers' shares have slid nearly in half since June over concerns over a slowdown in the toning category and heavy inventories of toning product in the marketplace, particularly as competitors such as Reebok, New Balance and Crocs expand into the category. In October, Skechers reported inventory increased 70% at the close of the third quarter due to several accounts overbooking for the BTS season and canceling orders.
Weinberg reiterated to Dow Jones that seasonality played a big part in the inventory ramp up. Toning is expected to follow the same seasonal factors as other sneakers, with the strongest sales during the spring and holidays. He added Skechers and its customers will make adjustments next year to carry less toning inventory during seasons when sandals and boots are the strong sellers.
He added that his company's stock gyrations don't reflect the ongoing strength the brand is seeing in other categories.
“It moved so quickly. People trying to get in and out of toning have probably made the stock more volatile than it deserves to be,” Weinberg said. “The pendulum has swung in the opposite direction, going past the core business that exists.”
