who-owns-skechers

Who Owns Skechers?

Skechers is primarily owned by institutional investors like FMR (Fidelity) with 14.6% of Class A Shares, The Vanguard Group, and BlackRock with 8.9% and 8.5%, respectively of the same. Other institutional investors comprise Schechers Voting Trust, ArrowMark Colorado Holdings, and the Massachusetts Financial Services Co. Top individual shareholders comprise Robert Greenberg, founder, and CEO of the company, followed by Michael Greenberg, President, Co-Founder, both 30-year veterans of the footwear industry, which played a key role in the growth of Skechers since 1994.

AspectDescriptionAnalysisExamples
Products and ServicesSkechers is a global footwear company that offers a wide range of footwear products for men, women, and children. The core offerings include athletic shoes, lifestyle footwear, performance shoes, sandals, boots, and workwear footwear. Skechers also manufactures and sells apparel and accessories, including activewear, socks, and bags. The company is known for its comfort-focused footwear designs.Skechers’ primary products and services encompass a diverse range of footwear for various occasions, including athletic, lifestyle, performance, and workwear options. The brand also offers apparel and accessories to complement its footwear offerings. Skechers is recognized for its emphasis on comfort-focused designs.Athletic shoes, lifestyle footwear, performance shoes, sandals, boots, workwear footwear, apparel (e.g., activewear), accessories (e.g., socks, bags), comfort-focused designs.
Revenue StreamsSkechers generates revenue primarily through the sale of footwear products to consumers through various channels, including company-owned retail stores, third-party retailers, e-commerce, and international operations. The company’s income is predominantly derived from product sales. Additionally, Skechers may earn income from licensing agreements and brand collaborations.Revenue sources include sales of footwear products through company-owned stores, third-party retailers, e-commerce platforms, and international operations. Licensing agreements and brand collaborations extend the brand’s reach and generate additional income.Revenue from the sale of footwear products (e.g., athletic shoes, lifestyle footwear), income from licensing agreements (e.g., Skechers-branded merchandise), income from brand collaborations (e.g., limited-edition releases).
Customer SegmentsSkechers serves a diverse customer base that includes individuals of all ages seeking comfortable and stylish footwear for various activities and occasions. The brand appeals to athletes, fitness enthusiasts, casual wearers, and those in need of work-specific footwear. Skechers offers options for different lifestyles and preferences.Skechers’ customer segments encompass individuals of all ages, from children to adults, looking for comfortable and stylish footwear suitable for various activities and occasions. The brand caters to athletes, fitness enthusiasts, casual wearers, and professionals needing work-appropriate footwear. Skechers provides options for diverse lifestyles and preferences.Individuals of all ages, athletes, fitness enthusiasts, casual wearers, professionals needing work-specific footwear, customers valuing comfort and style, diverse lifestyles and preferences.
Distribution ChannelsSkechers distributes its products through a variety of channels, including company-owned retail stores, third-party retailers (e.g., department stores, shoe stores), e-commerce platforms (official website), and international operations (franchise stores and distribution agreements). The brand’s products are available both in physical retail locations and online.Distribution channels encompass company-owned retail stores offering an exclusive shopping experience, third-party retailers providing accessibility to a wide customer base, e-commerce platforms for online sales and convenience, and international operations, including franchise stores and distribution agreements for global reach. A presence in both physical and online channels ensures product availability.Distribution through company-owned retail stores (e.g., Skechers outlets), third-party retailers (e.g., Macy’s, Foot Locker), e-commerce platforms (e.g., Skechers.com), international operations (e.g., franchise stores, distribution agreements), both physical retail locations and online platforms.
Key PartnershipsSkechers collaborates with third-party retailers and distribution partners to ensure its products are readily available to consumers across a wide range of locations. The company may also partner with athletes, celebrities, and influencers for endorsement and marketing campaigns. Additionally, Skechers collaborates with charitable organizations for philanthropic initiatives.Collaborations with third-party retailers and distribution partners ensure product accessibility and market reach. Partnerships with athletes, celebrities, and influencers enhance brand visibility and credibility. Collaborations with charitable organizations align with the brand’s philanthropic efforts.Collaborations with third-party retailers (e.g., DSW, Zappos), distribution partners (e.g., distribution agreements), partnerships with athletes (e.g., Tony Romo), celebrities (e.g., Demi Lovato), influencers, collaborations with charitable organizations (e.g., Skechers Pier to Pier Friendship Walk).
Key ResourcesSkechers’ key resources include its portfolio of footwear products, production facilities, retail stores, e-commerce platforms, a strong brand identity, research and development (R&D) capabilities for innovative designs, quality materials, marketing and advertising campaigns, and a commitment to comfort and style. The company values product quality and customer satisfaction.The portfolio of footwear products forms the core resource, featuring options for various occasions and preferences. Production facilities enable footwear manufacturing. Retail stores and e-commerce platforms facilitate sales and customer engagement. A strong brand identity fosters customer loyalty. R&D capabilities drive innovative designs. Quality materials maintain product standards. Marketing and advertising campaigns support brand visibility. A commitment to comfort and style aligns with customer expectations.Portfolio of footwear products (e.g., athletic shoes, lifestyle footwear), production facilities, company-owned retail stores, e-commerce platforms (e.g., Skechers.com), strong brand identity, research and development (R&D) capabilities, quality materials, marketing and advertising campaigns (e.g., Skechers commercials), commitment to comfort and style, product quality, customer satisfaction.
Cost StructureSkechers incurs costs related to the production and manufacturing of footwear products, including raw materials (e.g., shoe materials, cushioning technology), labor, and quality control measures. Investment in marketing and advertising campaigns promotes brand awareness and product launches. Employee salaries and benefits, including store staff and creative teams, represent a significant portion of costs. Distribution and logistics expenses are incurred to deliver products to various channels. Investments in R&D drive product innovation and design.Costs related to production encompass raw materials, labor, manufacturing processes, and quality control measures. Marketing and advertising campaigns are essential for brand visibility and new product launches. Employee salaries and benefits, including store staff and creative teams, constitute a substantial expense. Distribution and logistics costs are necessary for product delivery. Investments in R&D support product innovation and design, enhancing competitiveness.Costs related to production and manufacturing, marketing and advertising campaigns (e.g., advertising commercials), employee salaries and benefits (e.g., store staff, creative teams), distribution and logistics expenses, investments in research and development (R&D) for product innovation and design.
Competitive AdvantageSkechers’ competitive advantage lies in its diverse range of comfortable and stylish footwear options, a strong brand identity, a commitment to innovation in design and technology, a broad distribution network, partnerships with athletes and celebrities for endorsements, and philanthropic initiatives. The brand’s emphasis on comfort and style sets it apart.Offering a diverse range of comfortable and stylish footwear options caters to diverse customer preferences and sets Skechers apart. A strong brand identity fosters recognition and trust. A commitment to innovation in design and technology drives product appeal. A broad distribution network ensures accessibility. Partnerships with athletes and celebrities enhance credibility. Philanthropic initiatives reflect a commitment to social responsibility. The emphasis on comfort and style resonates with customers.Diverse range of comfortable and stylish footwear options, strong brand identity, commitment to innovation in design and technology, broad distribution network, partnerships with athletes (e.g., Tony Romo) and celebrities (e.g., Demi Lovato) for endorsements, philanthropic initiatives (e.g., Skechers Pier to Pier Friendship Walk), emphasis on comfort and style.
Value PropositionSkechers offers customers a value proposition centered on comfortable and stylish footwear suitable for various occasions and preferences. The brand provides a wide range of options, including athletic, lifestyle, performance, and workwear footwear, with a focus on innovative design and comfort. Customers value Skechers’ commitment to quality and style.Skechers’ value proposition revolves around comfortable and stylish footwear designed for diverse occasions and preferences. The brand’s extensive range of options, including athletic, lifestyle, performance, and workwear footwear, caters to various customer needs. Innovative design and comfort are key selling points. Customers appreciate Skechers’ commitment to quality and style.Comfortable and stylish footwear for various occasions and preferences, extensive range of options (e.g., athletic, lifestyle, performance, workwear footwear), innovative design and comfort, commitment to quality and style.

Key Highlights

  • Primary Ownership by Institutional Investors:
    • Skechers, a prominent footwear company, is primarily owned by various institutional investors.
    • FMR (Fidelity) holds a significant ownership stake with 14.6% of Class A Shares.
    • The Vanguard Group and BlackRock are also major institutional investors in Skechers, with ownership stakes of 8.9% and 8.5% respectively.
  • Other Institutional Investors:
    • In addition to FMR, The Vanguard Group, and BlackRock, other institutional investors play a role in owning shares of Skechers.
    • These investors include Skechers Voting Trust, ArrowMark Colorado Holdings, and the Massachusetts Financial Services Co.
  • Top Individual Shareholders:
    • Key individuals who have contributed significantly to Skechers’ growth have substantial ownership stakes in the company.
    • Robert Greenberg, the founder and CEO of Skechers, holds a prominent position among the top individual shareholders.
    • Michael Greenberg, President and Co-Founder of Skechers, also has a notable ownership stake.
    • Both Robert and Michael Greenberg have extensive experience in the footwear industry, contributing to Skechers’ success since its establishment in 1994.

Related Case Studies

Skechers Revenue

sckechers-revenue
Skechers’ revenue experienced a decline between 2019 and 2020, decreasing from $5.22 billion to $4.6 billion. The revenue started recovering in 2021, reaching $6.28 billion, surpassing 2019 levels. The positive growth trend continued in 2022, with revenue further increasing to $7.44 billion.

Skechers Profits

skechers-profits
Skechers’ net income saw a significant drop from 2019 to 2020, falling from $347 million to $98.56 million. In 2021, the company experienced a substantial recovery in net income, reaching $741.5 million. However, net income declined again in 2022, settling at $373 million, which was still higher than the 2020 level.

Wish Business Model

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Wish is a mobile-first e-commerce platform in which users’ experience is based on discovery and customized product feed. Wish makes money from merchants’ fees and merchants’ advertising on the platform and logistic services. The mobile platform also leverages an asset-light business model based on a positive cash conversion cycle where users pay in advance as they order goods, and merchants are paid in weeks.

Poshmark Business Model

poshmark-business-model
Poshmark is a social commerce mobile platform that combines social media capabilities to its e-commerce platform to enable transactions. It makes money with a simple model, where for each sale, Poshmark takes a 20% fee on the final price, for sales of $15 and over, and a flat rate of $2.95 for sales below that. As a mobile-first platform, its gamification elements and the tools offered to sellers are critical to the company’s growth.

Etsy Business Model

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Etsy is a two-sided marketplace for unique and creative goods. As a marketplace, it makes money via transaction fees on the items sold on the platform. Etsy’s key partner is comprised of sellers providing unique listings, and a wide organic reach across several marketing channels.

Fast Fashion

fast-fashion
Fash fashion has been a phenomenon that became popular in the late 1990s and early 2000s, as players like Zara and H&M took over the fashion industry by leveraging on shorter and shorter design-manufacturing-distribution cycles. Reducing these cycles from months to a few weeks. With just-in-time logistics and flagship stores in iconic places in the largest cities in the world, these brands offered cheap, fashionable clothes and a wide variety of designs.

Ultra Fast Fashion

ultra-fast-fashion
The Ultra Fashion business model is an evolution of fast fashion with a strong online twist. Indeed, where the fast-fashion retailer invests massively in logistics and warehousing, its costs are still skewed toward operating physical retail stores. While the ultra-fast fashion retailer mainly moves its operations online, thus focusing its cost centers on logistics, warehousing, and a mobile-based digital presence.

Real-Time Retail

real-time-retail
Real-time retail involves the instantaneous collection, analysis, and distribution of data to give consumers an integrated and personalized shopping experience. This represents a strong new trend, as a further evolution of fast fashion first (who turned the design into manufacturing in a few weeks), ultra-fast fashion later (which further shortened the cycle of design-manufacturing). Real-time retail turns fashion trends into clothes collections in a few days or a maximum of one week.

Slow Fashion

slow-fashion
Slow fashion is a movement in contraposition with fast fashion. Where in fast fashion it’s all about speed from design to manufacturing and distribution, in slow fashion instead quality and sustainability of the supply chain are the key elements.

Patagonia Business Model

patagonia-business-model
Patagonia is an American clothing retailer founded by climbing enthusiast Yvon Chouinard in 1973 who saw initial success by selling reusable climbing pitons and Scottish rugby shirts. Over time Patagonia also became a fashionable brand also for its focus on slow fashion. Indeed, the company sells high-priced clothing items built to last which it will repair for free.

Patagonia Organizational Structure

patagonia-organizational-structure
Patagonia has a particular organizational structure, where its founder, Chouinard, disposed of the company’s ownership in the hands of two non-profits. The Patagonia Purpose Trust, holding 100% of the voting stocks, is in charge of defining the company’s strategic direction. And the Holdfast Collective, a non-profit, holds 100% of non-voting stocks, aiming to re-invest the brand’s dividends into environmental causes.

Read Next: Zara Business Model, Inditex, Fast Fashion Business Model, Ultra Fast Fashion Business Model, SHEIN Business Model.

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