Latest news with #SkechersU.S.A.
Business Wire
4 days ago
- Business
- Business Wire
Skechers Announces Second Quarter 2025 Financial Results
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 second quarter ended June 30, 2025. Second Quarter 2025 Highlights Second quarter sales of $2.44 billion, a year-over-year increase of 13.1%, which includes a favorable impact due to foreign currency exchange rates of $33.9 million; sales of $2.41 billion on a constant currency basis, a year-over-year increase of 11.5% Wholesale sales grew 15.0% Direct-to-Consumer sales grew 11.0% Diluted earnings per share of $1.13, which includes a favorable impact due to foreign currency exchange rates of $0.30 per share; diluted earnings per share on a constant currency basis of $0.83 Second Quarter 2025 Financial Results Three Months Ended June 30, Change (in millions, except per share data) 2025 2024 $ % Sales $ 2,440.0 $ 2,157.6 282.4 13.1 Gross profit 1,301.3 1,184.4 116.9 9.9 Gross margin 53.3 % 54.9 % (160) bps Operating expenses 1,128.2 977.9 150.3 15.4 As a % of sales 46.2 % 45.3 % 90 bps Earnings from operations 173.1 206.5 (33.4 ) (16.2 ) Operating margin 7.1 % 9.6 % (250) bps Net earnings attributable to Skechers U.S.A., Inc. 170.5 140.3 30.2 21.5 Diluted earnings per share $ 1.13 $ 0.91 0.22 24.2 Expand Six Months 2025 Financial Results Six Months Ended June 30, Change (in millions, except per share data) 2025 2024 $ % Sales $ 4,851.6 $ 4,409.2 442.4 10.0 Gross profit 2,555.7 2,366.1 189.6 8.0 Gross margin 52.7 % 53.7 % (100) bps Operating expenses 2,117.5 1,860.7 256.7 13.8 As a % of sales 43.6 % 42.2 % 140 bps Earnings from operations 438.2 505.3 (67.1 ) (13.3 ) Operating margin 9.0 % 11.5 % (240) bps Net earnings attributable to Skechers U.S.A., Inc. 372.9 346.9 26.0 7.5 Diluted earnings per share $ 2.46 $ 2.24 0.22 9.8 Expand 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 approximately 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; the ability to complete our proposed merger (the 'Merger'), on the proposed terms or on the anticipated timeline, or at all, including risks and uncertainties related to securing the necessary regulatory approvals and satisfaction of other closing conditions to consummate the proposed Merger; the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement relating to the proposed Merger; risks that the proposed Merger disrupts the Company's current plans and operations or diverts the attention of the Company's management or employees from ongoing business operations; the risk of potential difficulties with the Company's ability to retain and hire key personnel and maintain relationships with customers and other third parties as a result of the proposed Merger, including during the pendency of the Merger; the risk that the proposed Merger may involve unexpected costs and/or unknown or inestimable liabilities; the risk that the Company's business may suffer as a result of uncertainty surrounding the proposed Merger; the risk that stockholder litigation in connection with the proposed Merger may affect the timing or occurrence of the proposed Merger or result in significant costs of defense, indemnification and liability; effects relating to the announcement of the transaction or any further announcements or the consummation of the transaction on the market price of the Company's common stock; and other factors referenced or incorporated by reference in Skechers' annual report on Form 10-K for the year ended December 31, 2024 and its quarterly reports on Form 10-Q in 2025. 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 expressly disclaims any obligation to publicly release any updates or revisions to any forward-looking statements to reflect any change in Skechers' expectations or any change in events, conditions or circumstances on which any statement is based. (Unaudited) As of As of (in thousands) December 31, 2024 ASSETS Current assets Cash and cash equivalents $ 1,377,152 $ 1,116,516 Short-term investments 106,254 118,470 Trade accounts receivable, net 1,149,298 990,558 Other receivables 105,157 98,499 Inventory 1,871,805 1,919,386 Prepaid expenses and other 242,045 205,994 Total current assets 4,851,711 4,449,423 Property, plant and equipment, net 2,075,256 1,834,930 Operating lease right-of-use assets 1,536,161 1,363,596 Deferred tax assets 423,544 440,358 Long-term investments 157,452 146,687 Goodwill 103,945 94,494 Other assets, net 130,047 126,270 Total non-current assets 4,426,405 4,006,335 TOTAL ASSETS $ 9,278,116 $ 8,455,758 LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 1,159,891 $ 1,241,838 Accrued expenses 356,295 330,251 Operating lease liabilities 303,370 297,926 Current installments of long-term borrowings 316,748 353,131 Short-term borrowings 179,633 33,338 Total current liabilities 2,315,937 2,256,484 Long-term operating lease liabilities 1,358,821 1,176,290 Long-term borrowings 87,965 68,450 Deferred tax liabilities 10,283 11,148 Other long-term liabilities 129,601 123,122 Total non-current liabilities 1,586,670 1,379,010 Total liabilities 3,902,607 3,635,494 Redeemable noncontrolling interest 102,374 90,099 Stockholders' equity Preferred Stock — — Class A Common Stock 131 130 Class B Common Stock 19 19 Additional paid-in capital 38,116 12,170 Accumulated other comprehensive loss (71,989 ) (171,221 ) Retained earnings 4,809,135 4,436,201 Skechers U.S.A., Inc. equity 4,775,412 4,277,299 Noncontrolling interests 497,723 452,866 Total stockholders' equity 5,273,135 4,730,165 $ 9,278,116 $ 8,455,758 Expand SKECHERS U.S.A., INC. AND SUBSIDIARIES Condensed Consolidated Statements of Earnings (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share data) 2025 2024 2025 2024 Sales $ 2,440,024 $ 2,157,643 $ 4,851,595 $ 4,409,230 Cost of sales 1,138,721 973,206 2,295,918 2,043,159 Gross profit 1,301,303 1,184,437 2,555,677 2,366,071 Operating expenses Selling 251,883 235,870 436,956 392,371 General and administrative 876,338 742,036 1,680,514 1,468,371 Total operating expenses 1,128,221 977,906 2,117,470 1,860,742 Earnings from operations 173,082 206,531 438,207 505,329 Other income (expense) 45,517 (1,652 ) 70,047 (3,702 ) Earnings before income taxes 218,599 204,879 508,254 501,627 Income tax expense 35,894 40,355 100,477 96,725 Net earnings 182,705 164,524 407,777 404,902 Less: Net earnings attributable to noncontrolling interests and redeemable noncontrolling interest 12,207 24,222 34,843 57,978 Net earnings attributable to Skechers U.S.A., Inc. $ 170,498 $ 140,302 $ 372,934 $ 346,924 Net earnings per share attributable to Skechers U.S.A., Inc. Basic $ 1.14 $ 0.92 $ 2.49 $ 2.27 Diluted $ 1.13 $ 0.91 $ 2.46 $ 2.24 Weighted-average shares used in calculating net earnings per share attributable to Skechers U.S.A., Inc. Basic 150,001 152,503 149,711 152,707 Diluted 151,305 154,176 151,395 154,640 Expand SKECHERS U.S.A., INC. AND SUBSIDIARIES Supplemental Financial Information (Unaudited) Segment Information Three Months Ended June 30, Change (in millions) 2025 2024 $ % Wholesale sales $ 1,301.4 $ 1,132.1 169.3 15.0 Cost of sales 763.0 635.2 127.9 20.1 Gross profit 538.4 496.9 41.4 8.3 Gross margin 41.4 % 43.9 % (250) bps Direct-to-Consumer sales $ 1,138.6 $ 1,025.5 113.1 11.0 Cost of sales 375.7 338.0 37.6 11.1 Gross profit 762.9 687.5 75.5 11.0 Gross margin 67.0 % 67.0 % 0 bps Total sales $ 2,440.0 $ 2,157.6 282.4 13.1 Cost of sales 1,138.7 973.2 165.5 17.0 Gross profit 1,301.3 1,184.4 116.9 9.9 Gross margin 53.3 % 54.9 % (160) bps Expand Six Months Ended June 30, Change (in millions) 2025 2024 $ % Wholesale sales $ 2,833.6 $ 2,553.8 279.8 11.0 Cost of sales 1,620.1 1,420.7 199.3 14.0 Gross profit 1,213.5 1,133.1 80.5 7.1 Gross margin 42.8 % 44.4 % (150) bps Direct-to-Consumer sales $ 2,018.0 $ 1,855.4 162.5 8.8 Cost of sales 675.8 622.4 53.5 8.6 Gross profit 1,342.2 1,233.0 109.1 8.8 Gross margin 66.5 % 66.5 % 0 bps Total sales $ 4,851.6 $ 4,409.2 442.4 10.0 Cost of sales 2,295.9 2,043.1 252.8 12.4 Gross profit 2,555.7 2,366.1 189.6 8.0 Gross margin 52.7 % 53.7 % (100) bps Expand Additional Sales Information Three Months Ended June 30, Change (in millions) 2025 2024 $ % Geographic sales Domestic Wholesale $ 413.3 $ 446.9 (33.6 ) (7.5 ) Direct-to-Consumer 448.8 416.9 31.8 7.6 Total domestic sales 862.1 863.8 (1.8 ) (0.2 ) International Wholesale 888.1 685.2 202.9 29.6 Direct-to-Consumer 689.8 608.6 81.2 13.3 Total international sales 1,577.9 1,293.8 284.2 22.0 Total sales $ 2,440.0 $ 2,157.6 282.4 13.1 Regional sales Americas (AMER) $ 1,113.0 $ 1,100.9 12.1 1.1 Europe, Middle East & Africa (EMEA) 731.5 492.5 239.0 48.5 Asia Pacific (APAC) 595.5 564.2 31.3 5.5 Total sales $ 2,440.0 $ 2,157.6 282.4 13.1 China sales $ 287.2 $ 312.7 (25.6 ) (8.2 ) Distributor sales $ 136.1 $ 112.8 23.3 20.6 Expand Six Months Ended June 30, Change (in millions) 2025 2024 $ % Geographic sales Domestic Wholesale $ 909.5 $ 922.9 (13.4 ) (1.5 ) Direct-to-Consumer 806.3 739.7 66.5 9.0 Total domestic sales 1,715.8 1,662.6 53.1 3.2 International Wholesale 1,924.1 1,630.9 293.2 18.0 Direct-to-Consumer 1,211.7 1,115.7 96.0 8.6 Total international sales 3,135.8 2,746.6 389.3 14.2 Total sales $ 4,851.6 $ 4,409.2 442.4 10.0 Regional sales Americas (AMER) $ 2,217.4 $ 2,120.4 97.0 4.6 Europe, Middle East & Africa (EMEA) 1,449.7 1,120.2 329.6 29.4 Asia Pacific (APAC) 1,184.5 1,168.6 15.8 1.4 Total sales $ 4,851.6 $ 4,409.2 442.4 10.0 China sales $ 555.8 $ 632.3 (76.4 ) (12.1 ) Distributor sales $ 272.1 $ 238.7 33.3 14.0 Expand SKECHERS U.S.A., INC. AND SUBSIDIARIES Reconciliation of GAAP Earnings Financial Measures to Corresponding Non-GAAP Financial Measures (Unaudited) 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. Other companies that provide similar non-GAAP measures may calculate them differently than we do, and the definitions may not be the same as the definitions we use. Six Months Ended June 30, 2025 2024 Change (in millions, except per share data) Reported GAAP Measure Constant Currency Adjustment Adjusted for Non-GAAP Measures Reported GAAP Measure $ % Sales $ 4,851.6 $ 9.6 $ 4,861.2 $ 4,409.2 $ 451.9 10.3 Cost of sales 2,295.9 2.9 2,298.8 2,043.1 255.6 12.5 Gross profit 2,555.7 6.7 2,562.4 2,366.1 196.3 8.3 Operating expenses 2,117.5 0.2 2,117.6 1,860.7 256.9 13.8 Earnings from operations 438.2 6.7 444.9 505.3 (60.4 ) (12.0 ) Other income (expense) 70.0 (75.3 ) (5.3 ) (3.7 ) (1.6 ) n/m Income tax expense (benefit) 100.5 (0.6 ) 99.8 96.7 3.1 3.2 Less: Noncontrolling interests and redeemable noncontrolling interest 34.8 0.7 35.5 58.0 (22.5 ) (38.8 ) Net earnings attributable to Skechers U.S.A., Inc. $ 372.9 $ (68.7 ) $ 304.2 $ 346.9 $ (42.7 ) (12.3 ) Diluted earnings per share $ 2.46 $ (0.45 ) $ 2.01 $ 2.24 $ (0.23 ) (10.3 ) Expand ___________________________ Note: Amounts may not foot due to rounding. n/m: not meaningful. Expand
Los Angeles Times
13-05-2025
- Business
- Los Angeles Times
Skechers to be Acquired by 3G Capital
Homegrown Sneaker Leader to Become a Privately Held Company Manhattan Beach-headquartered Skechers U.S.A., Inc., now the third largest footwear company in the world, has announced that it has agreed to be acquired by 3G Capital, a global investment firm built on an owner-operator approach to long-term investing. One of the largest founder-led consumer product companies in the world with $9 billion in annual sales, Skechers' significant growth over the past 30 years has been driven by a relentless focus on delivering style, comfort, quality and innovation at an affordable price. Known as the 'Comfort Technology Company,' Skechers is a growth-oriented, product-driven brand with a diverse distribution network and highly loyal customers and consumers. 'Over the last three decades, Skechers has experienced tremendous growth,' said Robert Greenberg, chairman and chief executive officer of Skechers. 'Our success has been due to our commitment to excellence and innovation across the entire Skechers organization, in-demand comfort-focused product offering, and loyal partners. With a proven track record, Skechers is entering its next chapter in partnership with the global investment firm 3G Capital. Given their remarkable history of facilitating the success of some of the most iconic global consumer businesses, we believe this partnership will support our talented team as they execute their expertise to meet the needs of our consumers and customers while enabling the company's long-term growth.' 'We are thrilled to be partnering with Skechers and look forward to working with an entrepreneur of Robert's caliber and the talented Skechers team,' said Alex Behring, co-founder and co-managing partner, and Daniel Schwartz, co-managing partner, of 3G Capital. 'Skechers is an iconic, founder-led brand with a track record of creativity and innovation. We have immense admiration for the business that this team has built and look forward to supporting the company's next chapter. Our team at 3G Capital is built to partner with companies like Skechers.' Following the completion of the transaction, Skechers will continue to execute its ongoing strategic initiatives, including designing award-winning and innovative products, international development, direct-to-consumer expansion, domestic wholesale growth, and strategic investments in global distribution, infrastructure and technology. This transaction, which was unanimously approved by the Skechers board of directors, including an independent committee of independent directors, is a transformational long-term partnership opportunity for Skechers to further evolve as a global leader in both lifestyle and performance footwear. The company's senior management team will lead that transition alongside 3G Capital, one of the foremost growth-focused investors in the world. Further, the company will continue to be led by Robert Greenberg, president Michael Greenberg, and the rest of the current management team. It will remain headquartered in its hometown of Manhattan Beach, where it was founded over 30 years ago. 3G Capital brings decades of successful stewardship alongside market-leading companies worldwide. Under the terms of the definitive merger agreement, 3G Capital has agreed to pay $63.00 per share in cash for all outstanding shares of Skechers, representing a premium of 30% to Skechers' 15-day volume-weighted average stock price. The transaction includes the option for existing shareholders of Skechers to instead receive $57.00 in cash and one unlisted, non-transferable equity unit in a newly formed, privately held company that, following the closing of the transaction, will be the parent company of Skechers. Skechers stockholders holding approximately 60% of the combined voting power of the outstanding shares of Skechers common stock have approved the transaction by written consent. As a result, no further actions by other Skechers stockholders will be required to approve the transaction. The transaction is subject to the satisfaction of customary closing conditions, including receipt of regulatory approvals. The transaction is expected to close in the third quarter of 2025. The transaction will be financed through a combination of cash provided by 3G Capital as well as debt financing that has been committed by JPMorgan Chase Bank, N.A. Upon completion of the transaction, the company's common stock will no longer be listed on the New York Stock Exchange, and Skechers will become a private company. Information was sourced from Skechers U.S.A., Inc. To learn more, contact jennc@
Yahoo
06-05-2025
- Business
- Yahoo
Why Skechers U.S.A., Inc. (SKX) Soared on Monday
We recently published a list of Why These 10 Firms Soared on Monday. In this article, we are going to take a look at where Skechers U.S.A., Inc. (NYSE:SKX) stands against other Monday's best performers. The stock market kicked off the trading week on a negative note as investors sold off on a new round of uncertainties from President Donald Trump's tariff policies. The Nasdaq fell by 0.74 percent, while the S&P 500 dropped 0.64 percent and the Dow Jones was down by 0.24 percent. Over the weekend, Trump told reporters that the US was negotiating with many countries, 'but at the end of this, I'll set my own deals — because I set the deal, they don't set the deal.' He added that he had no intentions to talk with Chinese President Xi Jinping, dampening hopes of a potential negotiation between the two of the world's largest economies. Beyond the major indices, 10 companies stood out with strong gains amid a flurry of fresh developments. In this article, we name Monday's 10 best performers and detail the reasons behind their gains. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume. Why Skechers U.S.A., Inc. (SKX) Soared on Monday A sportsperson running with style and grace, embodying the company's performance footwear. Skechers U.S.A., Inc. (NYSE:SKX) Skechers USA soared by 24.35 percent on Monday to end at $61.39 apiece as investors gobbled up shares following news that private equity firm 3G Capital is set to acquire the company for $9.4 billion. In a statement, 3G Capital agreed to acquire shares of Skechers U.S.A., Inc. (NYSE:SKX) at a price of $63 apiece. The price represented a premium of 30 percent to the shoemaker's 15-day volume-weighted average stock price. 'With a proven track record, Skechers is entering its next chapter in partnership with the global investment firm 3G Capital. Given their remarkable history of facilitating the success of some of the most iconic global consumer businesses, we believe this partnership will support our talented team as they execute their expertise to meet the needs of our consumers and customers while enabling the company's long-term growth,' said Skechers U.S.A., Inc. (NYSE:SKX) Chairman and CEO Robert Greenberg. Greenberg will continue to lead the company even with the assumption of the new management. Overall, SKX ranks 1st on our list of Monday's best performers. While we acknowledge the potential of SKX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SKX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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
