The growth in international concept stores has helped Skechers international wholesale segment sales triple from $432 million in 2012 to $1.3 billion in 2016. With stores in over 160 countries and territories internationally, it is critically important that Skechers understand product demand down to the regional level to have the right products in stock and reduce the chance for product markdowns. The concept stores do exactly that. Skechers states in its most recent 10-K that "sales in our concept stores can also help forecast sales in national retail stores, and we share this sales information with our wholesale customers." Additionally, this helps Skechers ensure it has the right "in-stock" inventory to fulfill customer orders quickly.
With all this growth from its international business in the last 5 years, will Skechers continue to grow internationally? The answer is definitely yes.
More international growth ahead
As reported in Skechers fourth quarter earnings release, Skechers international wholesale segment became the company's largest segment by revenue. David Weinberg, Skechers' Chief Financial Officer, stressed the importance of growth for the international business going forward in the company's most recent earnings call.
We expect international to be 50% of our total sales this year  as we believe it continues to represent the most significant growth opportunity for the company.
As of its 2015 annual report, Skechers details more than 15,000 total US retail "doors" where Skechers products can be purchased, with US concept stores representing less than 1% of that total. While Skechers believes the US market is well represented, with retail outlets carrying Skechers products, this is not the case internationally. With international concept stores almost double the number of domestic stores (and growing), it's feasible to think that Skechers international business could be twice that of the US, which gives the international business a lot of room to run.
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