Companies reporting upturn in sales figures
eCommerce has been vital for many producers during the pandemic.
Image © Elliot Westacott | Dreamstime.com
A number of companies working within the footwear supply chain have announced growth in revenue for the first quarter of 2021. The following reports highlight positive improvement after the initial effects of the COVID pandemic.
Sports footwear manufacturer Yue Yuen, which makes products for a number of international brand owners, has reported revenue of $2.5 billion (£1.8 billion) for this period. This represents a tear-on-year increase of 26.6 per cent.
Meanwhile, Skechers has announced record revenue of just over $1.4 billion (£986 million) for the first quarter of the year – a boost of 15 per cent over the same three months of 2020. The California-headquartered company saw a triple-digit growth in China and a 143 per cent growth in US e-commerce. Chief executive Robert Greenberg commented: “With warmer weather and increased vaccination rates around the world, traffic is improving in many of our retail stores, and our digital business continues to be a very strong growth driver.”
Another sportswear producer – Under Armour – has reported a 35 per cent increase in first quarter revenue to $1.3 billion (£915.6 million). Sales in North America grew by 32 per cent to $806 million (£567.6 million) and international revenue increased 58 per cent to $452 million (£318.4 million). Footwear revenue experienced a 47 per cent boost to reach $309 million (£217.7 million).
Reported revenue for Wolverine World Wide during Q1 was $510.7 million (£359.8 million), up by 16.3 per cent compared to the prior year. “We believe 2021 will be a breakthrough year for the company, and our first quarter performance was an excellent start,” said chairman and chief executive Blake Krueger. “In the first quarter, Merrell revenue grew nearly 25 per cent and Saucony revenue was up nearly 60 per cent compared to last year.”
Growth in sales has also been seen in other areas of the footwear supply chain. Materials and chemicals manufacturer BASF has reported revenue of $23.7 billion (£16.7 billion) for the first quarter of 2021, which represents an increase of 16 per cent year-on-year. The company’s materials sales rose by 20 per cent to $4.1 billion (£2.9 billion).
This article was originally published on page 2 of the June 2021 issue of SATRA Bulletin.