Latest news with #DavidWeinberg
Yahoo
23-06-2025
- Business
- Yahoo
Skechers's Q1 Earnings Call: Our Top 5 Analyst Questions
Skechers' first quarter results were met with a negative market reaction, following a modest revenue shortfall versus Wall Street expectations despite year-on-year sales growth. Management attributed this outcome to robust demand for its comfort-focused footwear in most regions, but highlighted persistent challenges in China due to macroeconomic pressures. Chief Operating Officer David Weinberg noted that, excluding China, Asia Pacific sales grew 12%, and emphasized strong direct-to-consumer performance in the U.S. and Europe. Chief Financial Officer John Vandemore added that higher promotional activity in select markets, along with elevated distribution and labor costs, weighed on operating margins. Is now the time to buy SKX? Find out in our full research report (it's free). Revenue: $2.41 billion vs analyst estimates of $2.43 billion (7.1% year-on-year growth, 0.9% miss) Operating Margin: 11%, down from 13.3% in the same quarter last year Locations: 5,318 at quarter end, up from 5,203 in the same quarter last year Constant Currency Revenue rose 8.9% year on year (13.2% in the same quarter last year) Market Capitalization: $9.35 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Jay Sole (UBS) asked about the company's ability to reduce U.S. exposure to China-sourced production amid higher tariffs. CFO John Vandemore reiterated ongoing use of sourcing flexibility and vendor partnerships but declined to give specific percentages or timelines. Laurent Vasilescu (BNP Paribas) pressed for clarity on market volatility and which regions are most affected. Vandemore highlighted the U.S. and China as areas of greatest uncertainty, while noting continued strength in Europe and Asia Pacific outside China. Peter McGoldrick (Stifel) inquired about the company's willingness to raise prices and whether this could be applied outside the U.S. Vandemore explained that price increases are a last resort and would be communicated carefully to consumers, tailored by region. Adrienne Yih-Tennant (Barclays) questioned the feasibility and speed of shifting sourcing away from China, especially for kids' footwear. Vandemore said all options are being considered, with kids' products presenting unique challenges due to manufacturing specialization. John Keeman (TD Cowen) sought details on direct-to-consumer growth targets and the pace of new store openings. Management emphasized international store expansion based on localized profitability analyses, with ongoing evaluation of the macroeconomic environment. In upcoming quarters, the StockStory team will watch (1) the pace and effectiveness of Skechers' tariff mitigation efforts and pricing strategies in the U.S., (2) whether international markets can sustain double-digit growth despite global economic uncertainty, and (3) signs of stabilization or recovery in China. Progress on direct-to-consumer expansion and the impact of new product launches will also be important indicators of execution. Skechers currently trades at $62.32, up from $50.44 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Business Wire
25-04-2025
- Business
- Business Wire
Skechers Announces First Quarter 2025 Financial Results and Record Quarterly Sales
LOS ANGELES--(BUSINESS WIRE)--Skechers U.S.A., Inc. ('Skechers' or the 'Company') (NYSE:SKX), The Comfort Technology Company ® and a global footwear leader, today announced financial results for the first quarter ended March 31, 2025. First Quarter 2025 Highlights "For the first quarter, we delivered record quarterly sales of $2.41 billion, reflecting strong global demand across both our wholesale and direct-to-consumer segments with international sales representing 65% of our business," began David Weinberg, Chief Operating Officer of Skechers. "Sales by region increased 14% in EMEA and 8% in the Americas. In APAC, sales decreased 3%; however, when excluding China, sales increased 12%. We believe Skechers has significant growth opportunities in China, and we will continue to invest in product, marketing and infrastructure to expand and support our presence. At the core of our success is our diverse offering of comfort technology products available at accessible prices across a variety of distribution channels. We remain focused on innovation within our established and successful lifestyle collections, growing our high-performance footwear offering, and investing in brand demand creation as we continue to drive future growth globally." "For more than thirty years, our focus on comfort, innovation, style and quality at an affordable price has been the cornerstone of our success," began Robert Greenberg, Chief Executive Officer of Skechers. "Our record first quarter sales are a testament to the resilience of our brand as we continue to see broad-based global demand. We believe our distinct value proposition will be even more vital as consumers navigate the current economic volatility. With new product developments featuring our Hands Free Slip-ins technology, we have an even stronger and more diverse offering for men, women and kids that meet the needs and interests of consumers. Our innovative features are highlighted through fresh global marketing campaigns featuring celebrities like Howie Mandel and Martha Stewart, as well as tailored regional approaches for China, Japan, across Europe, and other key markets. Elite athletes, including Julius Randle, Clayton Kershaw, Brooke Henderson and Harry Kane, are endorsing our technical performance footwear, attesting to its Comfort that Performs on courts, pitches, and beyond. Key opinion leaders and influencers at all levels across continents are advocating for the comfort and convenience of Skechers footwear. With the flexibility and determination of the entire Skechers organization, we will continue to innovate and deliver best-in-class footwear around the world." First Quarter 2025 Financial Results First quarter sales increased 7.1%, as a result of a 7.2% increase internationally and a 6.9% increase domestically. Wholesale increased 7.8% and Direct-to-Consumer increased 6.0%. On a constant currency basis, sales increased 9.0%. Wholesale sales grew $110.5 million, or 7.8%, including increases in EMEA of 13.0% and AMER of 7.3%, partially offset by a decrease in APAC of 0.6%. Wholesale volume increased 9.1% and average selling price declined 1.3%. Direct-to-Consumer sales grew $49.5 million, or 6.0%, including increases in AMER of 9.8% and EMEA of 21.7%, partially offset by a decrease in APAC of 4.4%. Direct-to-Consumer volume increased 6.3% and average selling price declined 0.3%. Gross margin was 52.0%, a decrease of 50 basis points, due to lower average selling prices. Operating expenses increased $106.4 million, or 12.1%, and as a percentage of sales increased 180 basis points to 41.0%. Selling expenses increased $28.6 million or 18.3%, and as a percentage of sales increased 70 basis points to 7.7%, primarily due to higher global demand creation expenditures. General and administrative expenses increased $77.8 million or 10.7%, and as a percentage of sales increased 110 basis points to 33.3%, primarily driven by labor and facility costs, including rent and depreciation. Earnings from operations decreased $33.7 million, or 11.3%, to $265.1 million. Net earnings attributable to Skechers were $202.4 million and diluted earnings per share were $1.34, compared with prior year net earnings of $206.6 million and diluted earnings per share of $1.33. The current quarter included a favorable impact due to foreign currency exchange rates of $0.17 per share. In the first quarter, the Company's effective income tax rate was 22.3%. The increase from 19.0% in the prior year was due to global minimum tax rules that are effective for fiscal 2025, partially offset by lower earnings in higher tax jurisdictions. "Our first quarter results reflect the continued strength of our business across the globe, a testament to our brand, the appeal of our innovative comfort technologies and distinctive value offering across our product portfolio," stated John Vandemore, Chief Financial Officer. "We remain confident in our ability to navigate the current market challenges, and know that our proven track record of managing this globally diverse brand with a unique and compelling product portfolio focused on delivering style, comfort, quality and innovation at a reasonable price will enable Skechers to endure and likely thrive during this time." Balance Sheet Cash, cash equivalents and investments totaled $1.24 billion, a decrease of $143.5 million, or 10.4% from December 31, 2024, due to working capital changes and $147.1 million of capital expenditures, partially offset by earnings. Inventory was $1.77 billion, a decrease of $145.6 million, or 7.6% from December 31, 2024. Outlook Due to macroeconomic uncertainty stemming from global trade policies, the Company is not providing financial guidance at this time and is withdrawing the annual 2025 guidance provided in our earnings release on February 6, 2025. Store Count First Quarter 2025 Conference Call The Company will host a conference call at 4:30 p.m. ET / 1:30 p.m. PT on April 24, 2025 to discuss its first quarter 2025 financial results. The call can be accessed on the Investor Relations section of the Company's website at For those unable to participate during the live broadcast, a replay will be available beginning April 24, 2025, at 7:30 p.m. ET, through May 8, 2025, at 11:59 p.m. ET. To access the replay, dial 844-512-2921 (U.S.) or 412-317-6671 (International) and use passcode: 13752653. About Skechers U.S.A., Inc. Skechers (NYSE:SKX), The Comfort Technology Company ® based in Southern California, designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. The Company's collections are available in approximately 180 countries and territories through department and specialty stores, and direct to consumers through and more than 5,300 Skechers retail stores. A Fortune 500 ® company, Skechers manages its international business through a network of wholly-owned subsidiaries, joint venture partners, and distributors. For more information, please visit and follow us on Facebook, Instagram and TikTok. Reference in this press release to 'Sales' refers to Skechers' net sales reported under GAAP. This announcement contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include, without limitation, Skechers' future domestic and international growth, financial results and operations including expected net sales and earnings, its development of new products, future demand for its products, its planned domestic and international expansion, opening of new stores and additional expenditures, and advertising and marketing initiatives. Forward-looking statements can be identified by the use of forward-looking language such as 'believe,' 'anticipate,' 'expect,' 'estimate,' 'intend,' 'plan,' 'project,' 'will,' 'could,' 'may,' 'might,' or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements. Factors that might cause or contribute to such differences include the disruption of business and operations due to delays or disruptions in our supply chain; international economic, political and market conditions including the effects of inflation, tariffs, and foreign currency exchange rate fluctuations around the world, the challenging consumer retail markets in the United States and the impact of wars, acts of war and other conflicts around the world; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers; decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers, especially in the highly competitive performance footwear market; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in Skechers' annual report on Form 10-K for the year ended December 31, 2024. Taking these and other risk factors into consideration, the dynamic nature of these circumstances means that what is stated in this press release could change at any time, and as a result, actual results could differ materially from those contemplated by such forward-looking statements. The risks included here are not exhaustive. Skechers operates in a very competitive and rapidly changing environment. New risks emerge from time to time and we cannot predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. Moreover, reported results should not be considered an indication of future performance. SKECHERS U.S.A., INC. AND SUBSIDIARIES Condensed Consolidated Statements of Earnings (Unaudited) Three Months Ended March 31, (in thousands, except per share data) 2025 2024 Sales $ 2,411,571 $ 2,251,587 Cost of sales 1,157,197 1,069,953 Gross profit 1,254,374 1,181,634 Operating expenses Selling 185,073 156,501 General and administrative 804,176 726,335 Total operating expenses 989,249 882,836 Earnings from operations 265,125 298,798 Other income (expense) 24,530 (2,050 ) Earnings before income taxes 289,655 296,748 Income tax expense 64,583 56,370 Net earnings 225,072 240,378 Less: Net earnings attributable to noncontrolling interests and redeemable noncontrolling interest 22,636 33,756 Net earnings attributable to Skechers U.S.A., Inc. $ 202,436 $ 206,622 Net earnings per share attributable to Skechers U.S.A., Inc. Basic $ 1.35 $ 1.35 Diluted $ 1.34 $ 1.33 Weighted-average shares used in calculating net earnings per share attributable to Skechers U.S.A., Inc. Basic 149,411 152,918 Diluted 151,495 155,119 Expand SKECHERS U.S.A., INC. AND SUBSIDIARIES Supplemental Financial Information (Unaudited) Segment Information Three Months Ended March 31, Change (in millions) 2025 2024 $ % Wholesale sales $ 1,532.2 $ 1,421.7 110.5 7.8 Cost of sales 857.0 785.7 71.3 9.1 Gross profit 675.2 636.0 39.2 6.2 Gross margin 44.1 % 44.7 % (70) bps Direct-to-Consumer sales $ 879.4 $ 829.9 49.5 6.0 Cost of sales 300.2 284.3 15.9 5.6 Gross profit 579.2 545.6 33.6 6.2 Gross margin 65.9 % 65.7 % 10 bps Total sales $ 2,411.6 $ 2,251.6 160.0 7.1 Cost of sales 1,157.2 1,070.0 87.2 8.2 Gross profit 1,254.4 1,181.6 72.8 6.2 Gross margin 52.0 % 52.5 % (50) bps Expand Additional Sales Information Three Months Ended March 31, Change (in millions) 2025 2024 $ % Geographic sales Domestic Wholesale $ 496.2 $ 476.0 20.2 4.2 Direct-to-Consumer 357.5 322.8 34.7 10.7 Total domestic sales 853.7 798.8 54.9 6.9 International Wholesale 1,036.0 945.7 90.3 9.5 Direct-to-Consumer 521.9 507.1 14.8 2.9 Total international sales 1,557.9 1,452.8 105.1 7.2 Total sales $ 2,411.6 $ 2,251.6 160.0 7.1 Regional sales Americas (AMER) $ 1,104.4 $ 1,019.5 84.9 8.3 Europe, Middle East & Africa (EMEA) 718.2 627.6 90.6 14.4 Asia Pacific (APAC) 589.0 604.5 (15.5 ) (2.6 ) Total sales $ 2,411.6 $ 2,251.6 160.0 7.1 China sales $ 268.7 $ 319.5 (50.8 ) (15.9 ) Distributor sales $ 136.0 $ 125.9 10.1 8.0 Expand SKECHERS U.S.A., INC. AND SUBSIDIARIES Reconciliation of GAAP Earnings Financial Measures to Corresponding Non-GAAP Financial Measures (Unaudited) Constant Currency Adjustment (Non-GAAP Financial Measure) We evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of period-over-period fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our results of operations, thereby facilitating period-to-period comparisons of our business performance and is consistent with how management evaluates the Company's performance. We calculate constant currency percentages by converting our current period local currency financial results using the prior-period exchange rates and comparing these adjusted amounts to our prior period reported results. Three Months Ended March 31, 2025 2024 Change (in millions, except per share data) Reported GAAP Measure Constant Currency Adjustment Adjusted for Non-GAAP Measures Reported GAAP Measure $ % Sales $ 2,411.6 $ 43.4 $ 2,455.0 $ 2,251.6 $ 203.4 9.0 Cost of sales 1,157.2 26.2 1,183.4 1,070.0 113.4 10.6 Gross profit 1,254.4 17.2 1,271.6 1,181.6 90.0 7.6 Operating expenses 989.2 14.4 1,003.6 882.8 120.8 13.7 Earnings from operations 265.1 2.9 268.0 298.8 (30.8 ) (10.3 ) Other income (expense) 24.5 (26.8 ) (2.3 ) (2.0 ) (0.3 ) (8.2 ) Income tax expense 64.6 — 64.6 56.4 8.2 14.6 Less: Noncontrolling interests and redeemable noncontrolling interest 22.6 0.6 23.2 33.8 (10.6 ) (31.4 ) Net earnings attributable to Skechers U.S.A., Inc. $ 202.4 $ (24.5 ) $ 177.9 $ 206.6 $ (28.7 ) (13.9 ) Diluted earnings per share $ 1.34 $ (0.17 ) $ 1.17 $ 1.33 $ (0.16 ) (12.0 ) ____________________________________________ Note: Amounts may not foot due to rounding. Expand
Fashion Network
24-04-2025
- Business
- Fashion Network
Skechers posts record-breaking quarter on strong wholesale and DTC, withdraws guidance on tariff woes
Skechers on Thursday posted a record-breaking sales quarter for the three months ending March 31, on strong global demand across both wholesale and direct-to-consumer segments. The Los Angeles-based company said first quarter sales grew 7.1% to $2.41 billion, coinciding with a 7.2% increase internationally and a 6.9% increase domestically. By channel, wholesale sales grew 7.8%, including increases in EMEA, up 13%, and the Americas, up 7.3%, partially offset by a decrease in APAC, down 0.6%. Likewise, direct-to-consumer sales grew 6%, on increases in the Americas, up 9.8% and EMEA, which surged 21.7%. The DTC growth was partially offset by a 4.4% decrease in APAC. Profits dipped slightly, with net earnings attributable to Skechers were $202.4 million and diluted earnings per share were $1.34, compared with prior year net earnings of $206.6 million and diluted earnings per share of $1.33. "For the first quarter, we delivered record quarterly sales of $2.41 billion, reflecting strong global demand across both our wholesale and direct-to-consumer segments with international sales representing 65% of our business," said David Weinberg, chief operating officer of Skechers. "Sales by region increased 14% in EMEA and 8% in the Americas. In APAC, sales decreased 3%; however, when excluding China, sales increased 12%. We believe Skechers has significant growth opportunities in China, and we will continue to invest in product, marketing and infrastructure to expand and support our presence. At the core of our success is our diverse offering of comfort technology products available at accessible prices across a variety of distribution channels. We remain focused on innovation within our established and successful lifestyle collections, growing our high-performance footwear offering, and investing in brand demand creation as we continue to drive future growth globally." Looking ahead, the sneaker company withdrew its prior annual 2025 guidance, citing "macroeconomic uncertainty stemming from global trade policies."
Fashion Network
24-04-2025
- Business
- Fashion Network
Skechers posts record-breaking quarter on strong wholesale and DTC, withdraws guidance on tariff woes
Skechers on Thursday posted a record-breaking sales quarter for the three months ending March 31, on strong global demand across both wholesale and direct-to-consumer segments. The Los Angeles-based company said first quarter sales grew 7.1% to $2.41 billion, coinciding with a 7.2% increase internationally and a 6.9% increase domestically. By channel, wholesale sales grew 7.8%, including increases in EMEA, up 13%, and the Americas, up 7.3%, partially offset by a decrease in APAC, down 0.6%. Likewise, direct-to-consumer sales grew 6%, on increases in the Americas, up 9.8% and EMEA, which surged 21.7%. The DTC growth was partially offset by a 4.4% decrease in APAC. Profits dipped slightly, with net earnings attributable to Skechers were $202.4 million and diluted earnings per share were $1.34, compared with prior year net earnings of $206.6 million and diluted earnings per share of $1.33. "For the first quarter, we delivered record quarterly sales of $2.41 billion, reflecting strong global demand across both our wholesale and direct-to-consumer segments with international sales representing 65% of our business," said David Weinberg, chief operating officer of Skechers. "Sales by region increased 14% in EMEA and 8% in the Americas. In APAC, sales decreased 3%; however, when excluding China, sales increased 12%. We believe Skechers has significant growth opportunities in China, and we will continue to invest in product, marketing and infrastructure to expand and support our presence. At the core of our success is our diverse offering of comfort technology products available at accessible prices across a variety of distribution channels. We remain focused on innovation within our established and successful lifestyle collections, growing our high-performance footwear offering, and investing in brand demand creation as we continue to drive future growth globally." Looking ahead, the sneaker company withdrew its prior annual 2025 guidance, citing "macroeconomic uncertainty stemming from global trade policies."
Fashion Network
24-04-2025
- Business
- Fashion Network
Skechers posts record-breaking quarter on strong wholesale and DTC, withdraws guidance on tariff woes
Skechers on Thursday posted a record-breaking sales quarter for the three months ending March 31, on strong global demand across both wholesale and direct-to-consumer segments. The Los Angeles-based company said first quarter sales grew 7.1% to $2.41 billion, coinciding with a 7.2% increase internationally and a 6.9% increase domestically. By channel, wholesale sales grew 7.8%, including increases in EMEA, up 13%, and the Americas, up 7.3%, partially offset by a decrease in APAC, down 0.6%. Likewise, direct-to-consumer sales grew 6%, on increases in the Americas, up 9.8% and EMEA, which surged 21.7%. The DTC growth was partially offset by a 4.4% decrease in APAC. Profits dipped slightly, with net earnings attributable to Skechers were $202.4 million and diluted earnings per share were $1.34, compared with prior year net earnings of $206.6 million and diluted earnings per share of $1.33. "For the first quarter, we delivered record quarterly sales of $2.41 billion, reflecting strong global demand across both our wholesale and direct-to-consumer segments with international sales representing 65% of our business," said David Weinberg, chief operating officer of Skechers. "Sales by region increased 14% in EMEA and 8% in the Americas. In APAC, sales decreased 3%; however, when excluding China, sales increased 12%. We believe Skechers has significant growth opportunities in China, and we will continue to invest in product, marketing and infrastructure to expand and support our presence. At the core of our success is our diverse offering of comfort technology products available at accessible prices across a variety of distribution channels. We remain focused on innovation within our established and successful lifestyle collections, growing our high-performance footwear offering, and investing in brand demand creation as we continue to drive future growth globally." Looking ahead, the sneaker company withdrew its prior annual 2025 guidance, citing "macroeconomic uncertainty stemming from global trade policies."
