• by Sarah Mahoney , Staff Writer @mahoney_sarah, August 2, 2022

Back-to-school footwear sales are a key barometer of consumer confidence, and early signs show strength. Skechers is crowing about record sales in the U.S., even as VF Corp.'s Vans division is pushing to regain its cool-kid status.

Overall, footwear and apparel brands have posted weaker results due to lower sales in China, related to pandemic shutdowns and supply-chain snags. But Skechers recently announced record sales for its second quarter, rising 12.4% to $1.87 billion -- up 10% in international businesses and 15% in the U.S. Net earnings came in at $90.4 million. Both metrics beat Wall Street forecasts.

"While we remain cautious given the challenges across the globe, we believe our comfort technology footwear, impactful marketing and the strength of our brand will drive continued sales growth in the back half of the year," said David Weinberg, Skechers chief operating officer, in its announcement.

VF Corp., the parent of the North Face, Timberland and Vans, also reported a sales gain. But its results came in lower than observers expected, partly due to weaker results at Vans. Revenue climbed 3% to $2.3 billion. The North Face shone, with sales jumping 31% to $500 million. But Vans' sales slipped 7%, to $900 million. The company reported a net loss of $56 million.

In a conference call webcast for investors, Steve Rendle, chairman, VF Corp president and chief executive officer, said the company is taking numerous steps to boost the brand.

He said it's also seeing "early signs of positive response from customers on our ongoing efforts to rebuild our core Classic strategy." That includes the "Classic Since Forever" campaign, which he said shows better ROI, 25 million views in the first two months.

"Brand heat has begun to show some bright spots," he said, including strong sales of Sailor Moon and Stranger Things collaborations.

This is the season when shoe sales take on an outsized importance in the retail landscape, considered an indicator of how people feel about family finances. And so far, that barometer looks healthy.

The Footwear Distributors and Retailers of America new report says that despite recession fears, 78% of families say they'll spend the same or more on back-to-school shoes.

But they are conscious of how inflation impacts their household budgets, with 67% of the sample saying they're shopping online more due to higher gas prices. And 29% are spending at least $300 more per month on their total purchases compared to last year.

The trade group also surveys top executives in the footwear industry, revealing that consumer sentiment has become the industry’s No. 1 concern, bumping supply chain issues down on their worry list.