Dive Brief:
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John Vandemore, who was Skechers’ chief financial officer for nearly a decade, will replace longtime Levi Strauss & Co. CFO Harmit Singh, effective Nov. 1.
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Before joining Skechers nine years ago, Vandemore held leadership roles in finance and operations at Mattel, The Walt Disney Company, International Game Technology and various consulting firms.
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Levi’s announced Singh’s retirement earlier this year. He will stay on as an adviser until Nov. 30.
Dive Insight:
Skechers’ finances have grown more robust on Vandemore’s watch, and analysts said this choice bodes well for the denim maker. The shoe brand’s revenues rose from $4 billion in 2017 to $10 billion last year, and that happens to be Levi’s target, too, BNP Paribas Equity Research senior analyst Laurent Vasilescu said in a Thursday research note.
The two brands line up in other ways, too. They are both global lifestyle brands with similar margin profiles (about 10% EBIT margins), geographic markets (with half of revenues coming from the Americas), and channels (about 55% wholesale and 45% direct to consumer), according to Needham analysts led by Tom Nikic.
“We have known Mr. Vandemore for nearly a decade, and we consider this to be a strong hire,” Nikic said in emailed comments Thursday. “Mr. Vandemore previously served as the CFO of Skechers for 9 years, helping the company become one of the world’s largest footwear brands with over $9 billion in revenue.”
Vandemore joins Levi’s as the brand, like Skechers, is working to grow its DTC sales.
In the most recent quarter, DTC provided just over half of its revenues, rising 11%, while wholesale grew 5%. But credit card data suggests that DTC sales were down in the U.S. quarter over quarter, and unseasonably warm weather in Europe could hurt DTC sales there, Vasilescu said.
In a statement, Levi’s CEO Michelle Gass took note of the company’s ambitions, saying that Vandemore is arriving “at a pivotal moment for our company.”
“We are building a more direct-to-consumer business, unlocking the full potential of the Levi’s brand and transforming LS&Co. into the world’s leading denim lifestyle retailer,” she said. “John’s deep financial, operational and consumer experience, combined with his proven ability to help global brands scale and grow profitably, makes him the ideal partner to help us realize our ambition of becoming a $10 billion company.”
