The footwear company added an additional 26,500 square meters to the facility, bringing its total size to approximately 98,500 square meters, making it the largest company-operated distribution in the region. Skechers says the new space was added to help meet increased demand, allowing the company to reach a record 3 million pairs shipped in a month during February and 8.1 million pairs for the first quarter of 2016.
In April, Skechers reported its highest-ever first quarter net sales, $978.8 million, primarily the result of a 47.1% increase in international wholesale business over the first quarter 2015.
“After outgrowing our storage capacity, we had to manage overflow beyond our facility and this new building will allow us to consolidate storage into the EDC and stabilize our logistics to meet growing needs of the European market over the longer term,” said Sophie Houtmeyers, Skechers EDC vice president of distribution operations, in a statement.
“This added storage capacity also opens up space in one of our adjoining buildings for the installation of new automation technologies that have improved efficiency elsewhere in our facility,” she continued. “We expect these upgrades to be online by November of this year and when combined with the expansion will prepare us for the future.”