Core Viewpoint - The U.S. consumer spending is weak due to trade policy uncertainties and macroeconomic conditions, significantly impacting the performance of North American footwear and apparel brands [1][2]. Group 1: Company Performance - Under Armour reported a 4% year-over-year decline in revenue for Q1 of fiscal year 2026, totaling $1.1 billion, with a projected 6% decline for Q2 [1]. - Crocs, known for its "Croc" shoes, reported a net loss of approximately $428 million for Q2, with North American revenue down 6.5% year-over-year, and expects a further decline of 9% to 11% in Q3 [1]. Group 2: Impact of Tariffs - The U.S. tariffs on imports from countries like Vietnam and Indonesia have raised costs for major brands such as Nike, which estimates an additional $1 billion in costs due to tariffs [2]. - Gap anticipates an increase in costs between $250 million to $300 million due to the tariffs [2]. - Retailers may need to raise prices by 10% to 12% to offset these costs, which will ultimately affect U.S. consumers, particularly those with lower incomes [2]. Group 3: Consumer Behavior and Market Dynamics - U.S. consumers are cautious with non-essential spending, leading to decreased foot traffic in stores and a preference for cheaper alternatives [3]. - The footwear and apparel industry faces a dilemma: raise prices to maintain profit margins or absorb costs, which would severely impact profitability [3]. - A letter signed by 76 footwear brands, including Nike and Adidas, was sent to the White House, indicating that tariffs pose a "survival threat" to the industry [3].

Have you evaluated the performance of Skechers' (SKX) international operations for the quarter ending June 2025? Given the extensive global presence of this shoe company, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importan ...

Core Viewpoint - The semiconductor industry is experiencing a recovery in demand, particularly in consumer electronics and AI applications, while inventory levels are improving and capital expenditures are being adjusted upwards by key players like TSMC and major overseas semiconductor manufacturers [1][2][4]. Demand Side - The consumer electronics sector is witnessing a recovery, with AI and automotive applications driving innovation. Global smartphone shipments in Q2 saw a year-on-year growth slowdown to 1%, while domestic shipments declined by 4%. PC shipments increased by 6.5% year-on-year in Q2, but growth is expected to weaken in H2 2025. Wearable devices, particularly AI glasses, are experiencing significant growth, with a 216% year-on-year increase in Q1 shipments [2][3]. - The automotive market in H1 2025 saw a 13.8% year-on-year increase in sales, with new models like Xiaomi's YU7 achieving substantial pre-order numbers [2]. Inventory Side - The Days of Inventory (DOI) for the smartphone supply chain has slightly increased, with terminal customer inventories remaining low. Major chip manufacturers like Intel reported a decrease in inventory levels, indicating a potential for increased shipments as demand rises [3]. Supply Side - TSMC is ramping up its advanced process production lines in the U.S., driven by strong demand from AI data centers. The capacity utilization rates for various foundries, including SMIC and UMC, have shown improvements, with SMIC reaching 92.5% in Q2 2025 [4][12]. - Major memory manufacturers are focusing capital expenditures on high-end memory products like HBM, with companies like Micron and SK Hynix increasing their capital spending forecasts for 2025 [4]. Price Side - Memory prices are showing signs of steady recovery, particularly for DDR4 and NAND Flash products. The analog chip sector is also expected to see potential price increases, which could positively impact the industry [6]. Sales Side - Global semiconductor sales reached $59.9 billion in June 2025, marking a 19.6% year-on-year increase. The Asia-Pacific region, excluding China and Japan, saw a 34.2% year-on-year sales growth, while sales in Japan declined by 2.9% [6]. Industry Chain Tracking - The semiconductor industry is experiencing marginal improvements in various segments, with a focus on companies benefiting from domestic control and recovery in demand. The design and IDM sectors are seeing growth driven by consumer demand and AI applications [6][17]. - The MCU market is recovering, particularly in consumer electronics and automotive sectors, with significant sales increases noted in Q2 2025 [7]. - The storage sector is seeing improved profitability among overseas manufacturers, with domestic companies also expected to recover in H2 2025 [8]. - The analog chip market is experiencing good demand trends, with many domestic companies reporting improved revenue in Q2 2025 [9]. Advanced Manufacturing and Testing - The demand for advanced processes remains strong, with TSMC maintaining a robust growth forecast for AI-related chips. The utilization rates for mature processes are also recovering, although customer inventory demand for Q4 2025 remains uncertain [12][13]. - Major international packaging and testing companies are forecasting significant revenue growth for Q3 2025, with domestic companies increasing investments in advanced packaging capabilities [13]. Equipment, Materials, and Components - Domestic semiconductor equipment manufacturers are showing positive trends in orders and revenue growth, while international firms express caution regarding future guidance due to geopolitical uncertainties [14]. - The push for domestic supply chain independence is accelerating, with ongoing efforts to reduce reliance on foreign components [14]. EDA/IP Sector - Chip design companies like Chipone are reporting record-high order backlogs, indicating strong demand in the EDA sector [15].

分组1 - Skechers reported quarterly earnings of $1.13 per share, exceeding the Zacks Consensus Estimate of $0.83 per share, and showing an increase from $0.91 per share a year ago, resulting in an earnings surprise of +36.14% [1] - The company achieved revenues of $2.44 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.50%, and up from $2.16 billion year-over-year [2] - Over the last four quarters, Skechers has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] 分组2 - The stock has underperformed the market, losing about 6.3% since the beginning of the year, while the S&P 500 has gained 7.8% [3] - The current consensus EPS estimate for the coming quarter is $0.93 on revenues of $2.53 billion, and for the current fiscal year, it is $3.65 on revenues of $9.67 billion [7] - The Zacks Industry Rank for Shoes and Retail Apparel is currently in the bottom 30% of over 250 Zacks industries, indicating potential challenges for the sector [8]

Core Insights - Skechers reported Q2 2025 GAAP revenue of $2.44 billion, a 13.1% increase year-over-year, exceeding analyst estimates [1][5] - Non-GAAP revenue reached $2,410 million, surpassing the estimate of $2,351.54 million, with non-GAAP earnings per share matching expectations at $0.83 [1][2] - The company experienced declining margins, with gross margin falling to 53.3% from 54.9% and operating margin decreasing to 7.1% from 9.6% year-over-year [1][7] Financial Performance - Net earnings attributable to Skechers U.S.A. increased by 21.5% to $170.5 million compared to $140.3 million in Q2 2024 [2] - International sales rose by 22.0%, with the Europe, Middle East, and Africa region showing a notable 48.5% increase to $731.5 million [5] - Domestic sales remained stable, with wholesale down 7.5% to $413.3 million, while Direct-to-Consumer sales rose 7.6% to $448.8 million [6] Business Overview - Skechers designs and markets a variety of footwear and apparel, focusing on comfort and innovation, with proprietary technologies like Hands Free Slip-ins and Arch Fit insoles [3][4] - The company has been expanding its international presence and direct-to-consumer channels, emphasizing comfort-based technologies and brand marketing [4] Operational Developments - Operating expenses increased by 15.4%, leading to operating costs rising to 46.2% of sales, driven by higher brand marketing and distribution expansion costs [8] - The impact of foreign currency movements positively affected reported results, contributing $33.9 million to sales and $0.30 to diluted earnings per share [8] Future Outlook - Management did not provide specific financial guidance due to uncertainties in global trade dynamics and consumer behavior [10] - Key issues for investors include managing margin pressure, the impact of new tariffs, and the ongoing sales slump in China [11]

PART I [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's Q2 2025 financial statements show strong asset growth, record sales, and increased net income, with notable merger-related costs [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to **$9.28 billion** by June 30, 2025, driven by cash, with liabilities at **$3.90 billion** and equity at **$5.27 billion** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $4,851,711 | $4,449,423 | | Cash and cash equivalents | $1,377,152 | $1,116,516 | | Inventory | $1,871,805 | $1,919,386 | | **Total Assets** | **$9,278,116** | **$8,455,758** | | **Total Current Liabilities** | $2,315,937 | $2,256,484 | | **Total Liabilities** | **$3,902,607** | **$3,635,494** | | **Total Stockholders' Equity** | **$5,273,135** | **$4,730,165** | [Condensed Consolidated Statements of Earnings](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) Q2 2025 sales grew 13.1% to **$2.44 billion**, with net earnings at **$170.5 million** and diluted EPS at **$1.13**, reflecting strong performance Q2 2025 vs Q2 2024 Earnings (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Sales | $2,440,024 | $2,157,643 | 13.1% | | Gross Profit | $1,301,303 | $1,184,437 | 9.9% | | Earnings from Operations | $173,082 | $206,531 | (16.2)% | | Net Earnings Attributable to Skechers | $170,498 | $140,302 | 21.5% | | Diluted EPS | $1.13 | $0.91 | 24.2% | Six Months 2025 vs 2024 Earnings (in thousands, except per share data) | Metric | Six Months 2025 | Six Months 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Sales | $4,851,595 | $4,409,230 | 10.0% | | Gross Profit | $2,555,677 | $2,366,071 | 8.0% | | Earnings from Operations | $438,207 | $505,329 | (13.3)% | | Net Earnings Attributable to Skechers | $372,934 | $346,924 | 7.5% | | Diluted EPS | $2.46 | $2.24 | 9.8% | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Six-month operating cash flow was **$448.2 million**, with **$315.0 million** used in investing and **$100.1 million** provided by financing, a shift from prior year Six Months Ended June 30 Cash Flow Summary (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $448,178 | $494,432 | | Net cash used in investing activities | ($314,958) | ($240,436) | | Net cash provided by (used in) financing activities | $100,132 | ($163,718) | | **Net change in cash and cash equivalents** | **$260,636** | **$90,520** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key disclosures include a proposed merger with **$9.3 million** in Q2 transaction costs, growth across all segments, no share repurchases, and a reduced effective tax rate of **16.4%** - On May 4, 2025, the Company entered into a Merger Agreement with Beach Acquisition Co Parent, LLC. The company recognized **$9.3 million** in transaction costs related to the merger in Q2 2025[25](index=25&type=chunk)[29](index=29&type=chunk) - The company's joint ventures in China, Israel, South Korea, Mexico, and Southeast Asia are considered variable interest entities (VIEs) and are consolidated in the financial statements[31](index=31&type=chunk) - As of June 30, 2025, the company had **$584.3 million** in outstanding borrowings, including amounts under its corporate revolving credit facility and various loans for distribution centers[121](index=121&type=chunk) - No shares were repurchased during the six months ended June 30, 2025. The company had **$789.9 million** remaining under its share repurchase program as of June 30, 2025[55](index=55&type=chunk)[56](index=56&type=chunk) - The effective tax rate for Q2 2025 was **16.4%**, a decrease from **19.7%** in Q2 2024, primarily due to lower earnings in higher tax jurisdictions[64](index=64&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported record Q2 sales of **$2.44 billion**, up 13.1%, driven by international growth, despite gross margin decline and increased operating expenses [Overview](index=25&type=section&id=Overview) The company achieved record Q2 2025 sales of **$2.44 billion**, up 13.1%, with broad-based growth, targeting **$10 billion** annual sales by 2026 Q2 2025 Key Highlights | Metric | Value | Note | | :--- | :--- | :--- | | Sales | $2.44 billion | Record quarterly sales, +13.1% YoY | | Gross Margin | 53.3% | - | | Segment Growth | Positive | Increased sales in both Wholesale and DTC | | Regional Growth | Positive | Increased sales in EMEA, APAC, and Americas | | Diluted EPS | $1.13 | - | - The company is focused on building efficiencies to scale for profitable growth and is confident in its goal of reaching **$10 billion** in annual sales by 2026[87](index=87&type=chunk) [Results of Operations – Second Quarter](index=25&type=section&id=Results%20of%20Operations%20%E2%80%93%20Second%20Quarter) Q2 2025 sales grew 13.1% to **$2.44 billion**, driven by international business, though gross margin declined to **53.3%** and operating expenses increased 15.4% - Sales increased **13.1%** due to a **22.0%** increase internationally, with Wholesale up **15.0%** and Direct-to-Consumer up **11.0%**[91](index=91&type=chunk) - Gross margin declined **160 bps** to **53.3%** due to higher costs per unit, driven by higher domestic duties from increased tariff rates[92](index=92&type=chunk) - Operating expenses increased **15.4%**, driven by higher labor costs (**$53.4 million**), facility costs (**$28.3 million**), and distribution costs (**$24.9 million**)[93](index=93&type=chunk) - The effective tax rate decreased to **16.4%** from **19.7%** in the prior year, due to lower earnings in higher tax jurisdictions[95](index=95&type=chunk) [Results of Segment Operations – Second Quarter](index=26&type=section&id=Results%20of%20Segment%20Operations%20%E2%80%93%20Second%20Quarter) Q2 2025 Wholesale sales grew 15.0% to **$1.3 billion**, with gross margin at **41.4%**, while Direct-to-Consumer sales rose 11.0% to **$1.1 billion** with stable gross margin Q2 2025 Wholesale Segment Performance | Metric | Value | Change vs Q2 2024 | | :--- | :--- | :--- | | Sales | $1.30 billion | +15.0% | | Gross Profit | $538.4 million | +8.3% | | Gross Margin | 41.4% | -250 bps | - Wholesale growth was driven by increases in EMEA (**+58.7%**) and APAC (**+4.0%**), partially offset by a decrease in the Americas (**-5.9%**)[99](index=99&type=chunk) Q2 2025 Direct-to-Consumer Segment Performance | Metric | Value | Change vs Q2 2024 | | :--- | :--- | :--- | | Sales | $1.14 billion | +11.0% | | Gross Profit | $762.9 million | +11.0% | | Gross Margin | 67.0% | 0 bps | - Direct-to-Consumer growth was driven by increases in the Americas (**+8.6%**), EMEA (**+27.8%**), and APAC (**+6.6%**)[100](index=100&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity with **$1.38 billion** cash and **$614.1 million** unused credit, with working capital at **$2.5 billion**, and **$330.7 million** in capital expenditures - As of June 30, 2025, the company had cash and cash equivalents of **$1,377.2 million**, with **95.0%** held outside the U.S[113](index=113&type=chunk) - Working capital was **$2.5 billion**, an increase of **$342.8 million** from December 31, 2024[115](index=115&type=chunk) - Capital expenditures for the first six months of 2025 were **$330.7 million**, primarily for global distribution expansion and retail investments[118](index=118&type=chunk) - Financing activities provided **$100.1 million** in cash, a **$263.9 million** positive swing from the prior year, mainly due to increased borrowings and no share repurchases[119](index=119&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposures were reported from the information previously disclosed in the 2024 Annual Report on Form 10-K - There have been no material changes from the market risk information previously reported in the 2024 Annual Report on Form 10-K[123](index=123&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of Q2 2025, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[124](index=124&type=chunk) - There were no material changes in internal control over financial reporting during the second quarter of 2025[125](index=125&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company faces new patent infringement lawsuits from Kizik and shareholder litigation regarding the proposed merger, alongside ongoing patent disputes with Nike - On July 24, 2025, Kizik filed a patent infringement lawsuit against the company concerning Skechers Slip-ins shoes[126](index=126&type=chunk) - A shareholder lawsuit (Key West Action) was filed on May 29, 2025, related to the proposed merger, seeking to enjoin the transaction pending further disclosures. A motion for a preliminary injunction was denied[127](index=127&type=chunk) - Litigation with Nike, Inc. regarding alleged infringement of six utility patents is resuming after a stay was lifted by the District Court[128](index=128&type=chunk)[129](index=129&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) New risks from the pending merger include potential adverse effects on business, stock price, and relationships, with uncertainty regarding timely completion and interim restrictive covenants - The announcement and pendency of the merger with Beach Acquisition Co Parent, LLC may adversely affect business, operating results, stock price, and relationships with employees, customers, and suppliers[132](index=132&type=chunk) - Completion of the merger is subject to conditions, including regulatory approvals, and may not be completed on a timely basis or at all. Failure to complete the merger could negatively affect the company's stock price and business[133](index=133&type=chunk)[136](index=136&type=chunk) - The company will incur substantial direct and indirect costs related to the merger, regardless of whether it is consummated[138](index=138&type=chunk) - During the pending merger, the company is subject to contractual restrictions that could limit its ability to respond to competitive pressures and business opportunities[139](index=139&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any Class A Common Stock in Q2 2025, with **$789.9 million** remaining available under the share repurchase program expiring July 2027 Share Repurchase Activity (Q2 2025) | Month Ended | Total Number of Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 30, 2025 | — | $ — | | May 31, 2025 | — | $ — | | June 30, 2025 | — | $ — | | **Total** | **—** | **$ —** | - As of June 30, 2025, **$789.9 million** remained available for repurchase under the company's share repurchase program[147](index=147&type=chunk) [Item 5. Other Information](index=39&type=section&id=Item%205.%20Other%20Information) The Board adopted a U.S. Employee Change in Control Severance Plan on August 7, 2025, providing benefits to eligible employees terminated post-merger - On August 7, 2025, the company's Board of Directors adopted a U.S. Employee Change in Control Severance Plan[150](index=150&type=chunk) - The plan provides severance benefits to eligible U.S. employees whose employment is terminated without 'cause' or for 'good reason' within 12 months following the closing of the merger[150](index=150&type=chunk) [Item 6. Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the Merger Agreement, corporate governance documents, and CEO/CFO certifications [Signatures](index=42&type=section&id=Signatures) The report is duly signed on August 8, 2025, by John Vandemore, Chief Financial Officer of Skechers U.S.A., Inc

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) [Second Quarter 2025 Financial Results](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results) Skechers reported strong top-line growth in the second quarter of 2025, with sales increasing 13.1% year-over-year to $2.44 billion, while profitability was impacted by higher operating expenses Q2 2025 Financial Highlights (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Sales | $2,440.0M | $2,157.6M | 13.1% | | Gross Profit | $1,301.3M | $1,184.4M | 9.9% | | Gross Margin | 53.3% | 54.9% | (160) bps | | Earnings from Operations | $173.1M | $206.5M | (16.2)% | | Operating Margin | 7.1% | 9.6% | (250) bps | | Net Earnings | $170.5M | $140.3M | 21.5% | | Diluted EPS | $1.13 | $0.91 | 24.2% | - Sales growth was positively impacted by foreign currency exchange rates, which contributed **$33.9 million**[6](index=6&type=chunk) - On a constant currency basis, sales grew **11.5%**[6](index=6&type=chunk) - Growth was observed across both major sales channels: **Wholesale Sales** grew **15.0%**, and **Direct-to-Consumer Sales** grew **11.0%**[6](index=6&type=chunk) [First Half 2025 Financial Results](index=1&type=section&id=Six%20Months%202025%20Financial%20Results) For the first six months of 2025, Skechers achieved sales of $4.85 billion, a 10.0% increase, but experienced margin contraction similar to the quarterly results H1 2025 Financial Highlights (vs. H1 2024) | Metric | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Sales | $4,851.6M | $4,409.2M | 10.0% | | Gross Profit | $2,555.7M | $2,366.1M | 8.0% | | Gross Margin | 52.7% | 53.7% | (100) bps | | Earnings from Operations | $438.2M | $505.3M | (13.3)% | | Operating Margin | 9.0% | 11.5% | (240) bps | | Net Earnings | $372.9M | $346.9M | 7.5% | | Diluted EPS | $2.46 | $2.24 | 9.8% | [Segment and Geographic Performance](index=5&type=section&id=Segment%20and%20Geographic%20Performance) [Performance by Sales Channel](index=5&type=section&id=Performance%20by%20Sales%20Channel) In Q2 2025, both sales channels demonstrated growth, with Wholesale sales increasing by 15.0% and Direct-to-Consumer (DTC) sales growing 11.0%, though Wholesale gross margin compressed Q2 2025 Sales Channel Performance (vs. Q2 2024) | Channel | Sales | Growth (%) | Gross Margin | Margin Change (bps) | | :--- | :--- | :--- | :--- | :--- | | Wholesale | $1,301.4M | 15.0% | 41.4% | (250) bps | | Direct-to-Consumer | $1,138.6M | 11.0% | 67.0% | 0 bps | H1 2025 Sales Channel Performance (vs. H1 2024) | Channel | Sales | Growth (%) | Gross Margin | Margin Change (bps) | | :--- | :--- | :--- | :--- | :--- | | Wholesale | $2,833.6M | 11.0% | 42.8% | (150) bps | | Direct-to-Consumer | $2,018.0M | 8.8% | 66.5% | 0 bps | [Performance by Geography](index=6&type=section&id=Performance%20by%20Geography) International markets, particularly EMEA, drove Q2 2025 growth with a 22.0% surge, while domestic sales were nearly flat and China experienced a downturn Q2 2025 Geographic Sales (vs. Q2 2024) | Geography | Sales | Growth (%) | | :--- | :--- | :--- | | **Domestic** | **$862.1M** | **(0.2)%** | | Wholesale | $413.3M | (7.5)% | | Direct-to-Consumer | $448.8M | 7.6% | | **International** | **$1,577.9M** | **22.0%** | | Wholesale | $888.1M | 29.6% | | Direct-to-Consumer | $689.8M | 13.3% | Q2 2025 Regional Sales (vs. Q2 2024) | Region | Sales | Growth (%) | | :--- | :--- | :--- | | Americas (AMER) | $1,113.0M | 1.1% | | EMEA | $731.5M | 48.5% | | Asia Pacific (APAC) | $595.5M | 5.5% | | **China (included in APAC)** | **$287.2M** | **(8.2)%** | [Financial Statements](index=3&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Skechers reported a healthy balance sheet with total assets of $9.28 billion, increased cash, and slightly decreased inventory Key Balance Sheet Items (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | **$4,851,711** | **$4,449,423** | | Cash and cash equivalents | $1,377,152 | $1,116,516 | | Inventory | $1,871,805 | $1,919,386 | | **Total Assets** | **$9,278,116** | **$8,455,758** | | **Total Current Liabilities** | **$2,315,937** | **$2,256,484** | | **Total Liabilities** | **$3,902,607** | **$3,635,494** | | **Total Stockholders' Equity** | **$5,273,135** | **$4,730,165** | [Condensed Consolidated Statements of Earnings](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) The Q2 2025 income statement shows total sales of $2.44 billion, with increased operating expenses leading to lower earnings from operations, partially offset by significant other income Q2 2025 Statement of Earnings (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Sales | $2,440,024 | $2,157,643 | | Gross Profit | $1,301,303 | $1,184,437 | | Total Operating Expenses | $1,128,221 | $977,906 | | Earnings from Operations | $173,082 | $206,531 | | Other Income (Expense) | $45,517 | $(1,652) | | Net Earnings | $182,705 | $164,524 | | Net Earnings Attributable to Skechers | $170,498 | $140,302 | [Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Financial%20Measures) [Reconciliation of GAAP to Constant Currency Measures](index=7&type=section&id=Reconciliation%20of%20GAAP%20to%20Constant%20Currency%20Measures) Skechers provides non-GAAP constant currency measures to exclude foreign exchange rate volatility, revealing an 11.5% sales growth and an 8.8% diluted EPS decline year-over-year in Q2 2025 on this basis - The company presents constant currency results to facilitate period-to-period comparisons of its business performance, excluding the volatility of foreign currency exchange rates[17](index=17&type=chunk) Q2 2025 GAAP vs. Constant Currency (Non-GAAP) | Metric | Reported GAAP | Constant Currency Adj. | Non-GAAP Measure | YoY Change (Non-GAAP) | | :--- | :--- | :--- | :--- | :--- | | Sales | $2,440.0M | $(33.9)M | $2,406.1M | 11.5% | | Net Earnings | $170.5M | $(44.2)M | $126.3M | (10.0)% | | Diluted EPS | $1.13 | $(0.30) | $0.83 | (8.8)% | [Company Information and Forward-Looking Statements](index=2&type=section&id=Company%20Information%20and%20Forward-Looking%20Statements) [About Skechers U.S.A., Inc.](index=2&type=section&id=About%20Skechers%20U.S.A.,%20Inc.) Skechers U.S.A., Inc. is a global leader in footwear, apparel, and accessories, distributing products in approximately 180 countries through wholesale partners and a direct-to-consumer network - Skechers is a global footwear leader specializing in lifestyle and performance products for men, women, and children[7](index=7&type=chunk) - The company operates a global distribution network, selling products in approximately **180 countries** through wholesale channels and approximately **5,300 Skechers-owned retail stores**[7](index=7&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section provides a standard safe harbor warning that the report contains forward-looking statements subject to various risks and uncertainties, including supply chain disruptions and international instability - The report includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995[8](index=8&type=chunk) - Key risks that could cause actual results to differ materially include: supply chain disruptions, international economic and political conditions (inflation, tariffs, conflicts), intense competition, and uncertainties related to a proposed merger[8](index=8&type=chunk)

7月30日召开的中共中央政治局会议提出，深入实施提振消费专项行动，在扩大商品消费的同时，培育 服务消费新的增长点。 在北京三里屯，"种草"国际小众品牌；在上海新天地，打卡运动品牌的体测服务；在重庆观音桥， 领略山城晚风里的青春活力……各地采取多种措施，鼓励国际和本土品牌落地生根。中办国办印发的 《提振消费专项行动方案》提出，鼓励国内外优质商品和服务品牌开设首店、举办首发首秀首展。 首店即行业内有引领性、代表性的知名品牌在一个区域内首次开设的门店，比如全球首店、亚太首 店或全国首店；或是原有品牌通过跨界、创新，在某个区域的首次落地。从舌尖美食到圈粉潮玩，从运 动装备到时尚新品，持续上新的首店不仅为消费者提供更加多元的消费选择，更为城市发展注入新的活 力。 ——编 者 "通过首店，品牌与商圈能更好实现双向奔赴。"国贸商城总监助理郭开宇介绍，"在国贸商城，某 些现象级的首店，节假日入店客流能达到上万人，对整个商场的消费拉动作用非常明显。" "首店经济要注重城市更新与消费升级的深度融合。"北京市朝阳区商务局副局长王仁清介绍，截至 2024年底，朝阳区累计引进首店2372家，下一步要"两条腿走路"：既要抓国际大牌全球首 ...

7月30日召开的中共中央政治局会议提出，深入实施提振消费专项行动，在扩大商品消费的同时，培育 服务消费新的增长点。 在北京三里屯，"种草"国际小众品牌；在上海新天地，打卡运动品牌的体测服务；在重庆观音桥，领略 山城晚风里的青春活力……各地采取多种措施，鼓励国际和本土品牌落地生根。中办国办印发的《提振 消费专项行动方案》提出，鼓励国内外优质商品和服务品牌开设首店、举办首发首秀首展。 首店即行业内有引领性、代表性的知名品牌在一个区域内首次开设的门店，比如全球首店、亚太首店或 全国首店；或是原有品牌通过跨界、创新，在某个区域的首次落地。从舌尖美食到圈粉潮玩，从运动装 备到时尚新品，持续上新的首店不仅为消费者提供更加多元的消费选择，更为城市发展注入新的活力。 ——编 者 北京迎来新一批国际小众品牌—— 双向奔赴，激发商圈活力 本报记者 王昊男 瑞典户外品牌"火柴棍"北京首店正加紧装修，法国小众品牌"波灵恩"中国首店落地三里屯……行走北 京，国际品牌争相设立首店，正成为消费领域不断成长的新动能。 北京国贸商城南区一层，"火柴棍"北京首店装修现场，工人们正在加紧施工。客户经理谭立介绍，112 平方米的店面虽然不大，却将为 ...

Skechers is making kids' shoes with a hidden AirTag compartment | TechCrunch https://t.co/7NvJCEhEUS ...