[Financial Highlights and Executive Summary](index=1&type=section&id=Financial%20Highlights%20and%20Executive%20Summary) Skechers reported record Q3 sales of $2.35 billion, a 15.9% increase, driven by strong global demand across all channels and strategic brand initiatives Q3 2024 Key Performance Indicators | Metric | Value | Change (YoY) | | :--- | :--- | :--- | | Record Quarterly Sales | $2.35 Billion | +15.9% | | Wholesale Sales | - | +20.6% | | Direct-to-Consumer Sales | - | +9.6% | | Diluted EPS | $1.26 | +35.5% | - The company achieved broad-based geographic growth, with sales increasing **30% in EMEA**, **14% in the Americas**, and **7% in Asia Pacific**, demonstrating strong global demand despite challenging market conditions in some areas[2](index=2&type=chunk) - Strategic focus remains on product innovation, particularly comfort technologies like Skechers Hands Free Slip-ins, and raising brand awareness through high-profile ambassadors (Snoop Dogg, Joel Embiid, Howie Mandel) and expansion into team sports like soccer and basketball[2](index=2&type=chunk) [Third Quarter 2024 Financial Performance](index=2&type=section&id=Third%20Quarter%202024%20Financial%20Performance) Q3 sales rose 15.9% to $2.35 billion, driven by strong wholesale and DTC growth, while net earnings increased 32.9% despite a slight gross margin contraction Q3 2024 Financial Summary (in millions, except per share data) | Metric | Q3 2024 | Q3 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Sales (in millions) | $2,347.7 | $2,025.0 | +15.9% | | Gross Profit (in millions) | $1,223.0 | $1,071.9 | +14.1% | | Gross Margin | 52.1% | 52.9% | -80 bps | | Earnings from Operations (in millions) | $233.4 | $213.2 | +9.5% | | Operating Margin | 9.9% | 10.5% | -60 bps | | Net Earnings (in millions) | $193.2 | $145.4 | +32.9% | | Diluted EPS | $1.26 | $0.93 | +35.5% | [Q3 Sales Performance by Channel and Region](index=2&type=section&id=Q3%20Sales%20Performance%20by%20Channel%20and%20Region) Q3 sales saw strong growth in Wholesale (+20.6%) and DTC (+9.6%), with international sales, particularly EMEA, outpacing domestic growth - **Wholesale:** Sales grew **$241.4 million** (**20.6%**), with volume up **21.2%** and average selling price down **0.5%** - Growth was led by EMEA (**+30.9%**) and AMER (**+21.6%**)[3](index=3&type=chunk) - **Direct-to-Consumer:** Sales grew **$81.3 million** (**9.6%**), with volume up **10.7%** and average selling price down **1.0%** - Growth was led by EMEA (**+28.0%**) and APAC (**+10.0%**)[3](index=3&type=chunk) Q3 2024 Sales Growth by Region | Region | Sales (in millions) | Growth (YoY) | | :--- | :--- | :--- | | Americas (AMER) | $1,156.1 | +13.6% | | EMEA | $625.6 | +30.2% | | Asia Pacific (APAC) | $566.0 | +7.4% | [Q3 Profitability and Expenses](index=2&type=section&id=Q3%20Profitability%20and%20Expenses) Q3 gross margin contracted by 80 basis points to 52.1% due to lower selling prices, while operating expenses increased 15.2% but improved as a percentage of sales - Gross margin decreased to **52.1%** from **52.9%** in the prior year, a change driven by lower average selling prices[3](index=3&type=chunk) - Selling expenses increased **18.4%** due to higher demand creation expenditures, while General & Administrative expenses rose **14.4%** from increased labor and facility costs[3](index=3&type=chunk) - The effective income tax rate for the quarter was **14.7%**, a decrease from the prior year due to the release of certain allowances and other provision adjustments[3](index=3&type=chunk) [Nine Months 2024 Financial Performance](index=3&type=section&id=Nine%20Months%202024%20Financial%20Performance) Nine-month sales grew 11.9% to $6.76 billion, with gross margin improving 160 basis points to 53.1% and net earnings increasing 17.8% Nine Months 2024 Financial Summary (in millions, except per share data) | Metric | 9M 2024 | 9M 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Sales (in millions) | $6,756.9 | $6,039.4 | +11.9% | | Gross Profit (in millions) | $3,589.1 | $3,111.0 | +15.4% | | Gross Margin | 53.1% | 51.5% | +160 bps | | Earnings from Operations (in millions) | $738.8 | $654.5 | +12.9% | | Operating Margin | 10.9% | 10.8% | +10 bps | | Net Earnings (in millions) | $540.1 | $458.6 | +17.8% | | Diluted EPS | $3.50 | $2.93 | +19.5% | [YTD Sales Performance](index=3&type=section&id=YTD%20Sales%20Performance) Year-to-date sales showed balanced growth across Wholesale (+12.1%) and DTC (+11.6%), with international sales, particularly EMEA, driving overall expansion - **Wholesale:** Sales increased **12.1%** year-to-date, with volume up **12.5%**[4](index=4&type=chunk) - **Direct-to-Consumer:** Sales increased **11.6%** year-to-date, with volume up **11.8%**[4](index=4&type=chunk) Nine Months 2024 Sales Growth by Region | Region | Sales (in millions) | Growth (YoY) | | :--- | :--- | :--- | | Americas (AMER) | $3,276.5 | +9.6% | | EMEA | $1,745.7 | +20.5% | | Asia Pacific (APAC) | $1,734.7 | +8.4% | [YTD Profitability and Expenses](index=3&type=section&id=YTD%20Profitability%20and%20Expenses) Year-to-date gross margin expanded 160 basis points to 53.1% due to lower freight costs, while operating expenses increased 16.0% and rose as a percentage of sales - Gross margin improved to **53.1%** from **51.5%** in the prior year, mainly due to lower costs per unit driven by reduced freight expenses[4](index=4&type=chunk) - Operating expenses as a percentage of sales increased to **42.2%** from **40.7%**, with selling expenses up **22.2%** and G&A expenses up **14.5%**[4](index=4&type=chunk) [Financial Position and Shareholder Returns](index=3&type=section&id=Financial%20Position%20and%20Shareholder%20Returns) Skechers maintained strong liquidity with $1.60 billion in cash, increased inventory to $1.71 billion, and repurchased $90.0 million of stock in Q3 - Cash, cash equivalents, and investments totaled **$1.60 billion**, an increase of **$211.8 million** from December 31, 2023[4](index=4&type=chunk) - Inventory was **$1.71 billion**, an **11.9%** increase from December 31, 2023, to support expected demand[4](index=4&type=chunk) - During Q3, the company repurchased **1.4 million shares** for **$90.0 million** - **$910.0 million** remains available under the share repurchase program[4](index=4&type=chunk) [Business Outlook](index=3&type=section&id=Business%20Outlook) Skechers forecasts Q4 sales of $2.165-$2.215 billion and raised full-year 2024 guidance to $8.925-$8.975 billion in sales, confident in reaching $10 billion by 2026 Q4 2024 Outlook | Metric | Guidance Range | | :--- | :--- | | Sales (in billions) | $2.165 Billion - $2.215 Billion | | Diluted EPS | $0.70 - $0.75 | Full Year 2024 Outlook | Metric | Guidance Range | | :--- | :--- | | Sales (in billions) | $8.925 Billion - $8.975 Billion | | Diluted EPS | $4.20 - $4.25 | - Management expressed confidence in achieving the long-term goal of **$10 billion** in sales by 2026[3](index=3&type=chunk) [Operational Metrics](index=4&type=section&id=Operational%20Metrics) Skechers' global retail footprint expanded to 5,332 stores as of September 30, 2024, a net increase of 164 stores year-to-date Store Count as of September 30, 2024 | Store Type | Dec 31, 2023 | Opened | Closed | Sep 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Domestic | 563 | 42 | (13) | 592 | | International | 1,085 | 149 | (83) | 1,151 | | Distributor, licensee & franchise | 3,520 | 315 | (246) | 3,589 | | **Total Skechers stores** | **5,168** | **506** | **(342)** | **5,332** | [Supplemental Financial Information](index=7&type=section&id=Supplemental%20Financial%20Information) This section details Q3 segment performance, geographic sales, and non-GAAP constant currency reconciliation, highlighting wholesale vs. DTC margins and EMEA's strong growth [Segment Information (Wholesale vs. Direct-to-Consumer)](index=7&type=section&id=Segment%20Information%20%28Wholesale%20vs.%20Direct-to-Consumer%29) Q3 saw Wholesale sales grow 20.6% with 42.8% gross margin, while DTC grew 9.6% with 66.3% gross margin, and YTD Wholesale margin improved significantly Q3 2024 Segment Performance (in millions) | Segment | Sales (in millions) | Growth (YoY) | Gross Profit (in millions) | Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Wholesale | $1,416.0 | +20.6% | $605.4 | 42.8% | | Direct-to-Consumer | $931.7 | +9.6% | $617.6 | 66.3% | Nine Months 2024 Segment Performance (in millions) | Segment | Sales (in millions) | Growth (YoY) | Gross Profit (in millions) | Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Wholesale | $3,969.8 | +12.1% | $1,738.5 | 43.8% | | Direct-to-Consumer | $2,787.1 | +11.6% | $1,850.6 | 66.4% | [Geographic Sales Information](index=8&type=section&id=Geographic%20Sales%20Information) Q3 international sales grew 16.4% to $1.43 billion, outpacing domestic growth, with EMEA as the key driver, while China sales declined 5.7% Q3 2024 Geographic Sales (in millions) | Geography | Sales (in millions) | Growth (YoY) | | :--- | :--- | :--- | | Domestic | $916.0 | +15.3% | | International | $1,431.7 | +16.4% | | **Total** | **$2,347.7** | **+15.9%** | - China sales for Q3 2024 were **$252.4 million**, a decrease of **5.7%** from **$267.6 million** in Q3 2023[13](index=13&type=chunk) [Reconciliation to Non-GAAP Measures (Constant Currency)](index=9&type=section&id=Reconciliation%20to%20Non-GAAP%20Measures%20%28Constant%20Currency%29) Non-GAAP constant currency reconciliation shows Q3 sales growth unaffected by FX, while nine-month growth was 12.7%, 80 basis points higher than GAAP - The constant currency presentation is a non-GAAP measure that excludes the impact of period-over-period fluctuations in foreign currency exchange rates to facilitate performance comparisons[15](index=15&type=chunk) Q3 & 9M 2024 Sales Growth: GAAP vs. Constant Currency | Period | Reported GAAP Growth | Constant Currency Growth | | :--- | :--- | :--- | | Three Months | 15.9% | 15.9% | | Nine Months | 11.9% | 12.7% | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents unaudited condensed consolidated balance sheets and statements of earnings for Q3 and nine-month periods ending September 30, 2024 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2024, total assets reached $8.65 billion, driven by receivables and inventory growth, with total liabilities at $3.73 billion and equity at $4.82 billion Key Balance Sheet Items (in thousands) | Account | Sep 30, 2024 (in thousands) | Dec 31, 2023 (in thousands) | | :--- | :--- | :--- | | Total Current Assets | $4,698,508 | $3,952,604 | | Total Assets | $8,646,041 | $7,547,351 | | Total Current Liabilities | $2,396,656 | $1,660,867 | | Total Liabilities | $3,733,527 | $3,147,309 | | Total Stockholders' Equity | $4,820,535 | $4,310,210 | [Condensed Consolidated Statements of Earnings](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) The income statement details Q3 2024 sales of $2.35 billion and net earnings of $209.3 million, with nine-month sales at $6.76 billion and net earnings at $614.2 million Statement of Earnings Highlights (in thousands) | Line Item | Three Months Ended Sep 30, 2024 (in thousands) | Nine Months Ended Sep 30, 2024 (in thousands) | | :--- | :--- | :--- | | Sales | $2,347,705 | $6,756,935 | | Gross Profit | $1,223,046 | $3,589,117 | | Earnings from Operations | $233,424 | $738,753 | | Net Earnings | $209,309 | $614,211 | | Net Earnings Attributable to Skechers | $193,221 | $540,145 |

As Skechers U.S.A., Inc. (SKX) gears up to unveil its third-quarter 2024 earnings results on Oct. 24 after market close, investors are eager to gauge the company's performance. Known for its innovative footwear and strong brand presence, Skechers has been navigating through changing market dynamics and evolving consumer preferences. The company is expected to register an increase in the top line, with the Zacks Consensus Estimate for revenues standing at $2.32 billion, which indicates a notable 14.8% improv ...

Wall Street analysts expect Skechers (SKX) to post quarterly earnings of $1.15 per share in its upcoming report, which indicates a year-over-year increase of 23.7%. Revenues are expected to be $2.32 billion, up 14.8% from the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Before a company announces its earnings, it is essenti ...

Core Viewpoint - Skechers (SKX) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the earnings report set for October 24, 2024, being a significant factor for stock price movement [1] Group 1: Earnings Expectations - The consensus estimate for Skechers' quarterly earnings is $1.15 per share, reflecting a year-over-year increase of 23.7% [2] - Expected revenues for the quarter are $2.32 billion, which represents a 14.8% increase from the same quarter last year [2] Group 2: Estimate Revisions - The consensus EPS estimate has been revised 0.03% higher in the last 30 days, indicating a slight bullish sentiment among analysts [3] - The Most Accurate Estimate for Skechers is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.65% [6][7] Group 3: Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [5] - Skechers currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat despite the positive Earnings ESP [7] Group 4: Historical Performance - In the last reported quarter, Skechers was expected to post earnings of $0.94 per share but delivered $0.91, resulting in a surprise of -3.19% [8] - Over the past four quarters, Skechers has beaten consensus EPS estimates three times [8] Group 5: Market Reaction Considerations - An earnings beat or miss may not solely dictate stock price movement, as other factors can influence investor sentiment [9] - While Skechers does not appear to be a compelling earnings-beat candidate, monitoring additional factors is essential for investment decisions [9]

The most recent trading session ended with Skechers (SKX) standing at $62.71, reflecting a -0.73% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.47%. At the same time, the Dow added 0.79%, and the tech-heavy Nasdaq gained 0.28%.The shoe company's stock has dropped by 7.02% in the past month, falling short of the Consumer Discretionary sector's gain of 7.13% and the S&P 500's gain of 3.48%.The investment community will be closely monitoring t ...

In the latest trading session, Skechers (SKX) closed at $65.94, marking a -0.09% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.71%. At the same time, the Dow added 1.03%, and the tech-heavy Nasdaq gained 0.6%.Prior to today's trading, shares of the shoe company had gained 1.76% over the past month. This has lagged the Consumer Discretionary sector's gain of 6.39% and the S&P 500's gain of 6.41% in that time.The investment community will be paying close attenti ...

Company Performance - Skechers (SKX) closed at $65.13, reflecting a -1.79% change from the previous day, underperforming the S&P 500 which lost 0.17% [1] - Over the last month, Skechers shares decreased by 1.59%, while the Consumer Discretionary sector gained 3.63% and the S&P 500 gained 1.25% [1] - The upcoming earnings report on October 24, 2024, is expected to show earnings of $1.15 per share, representing a year-over-year growth of 23.66% [1] - The Zacks Consensus Estimate for revenue is projected at $2.32 billion, an increase of 14.73% from the previous year [1][2] Analyst Estimates - For the full year, earnings are projected at $4.15 per share and revenue at $8.94 billion, indicating changes of +18.91% and +11.79% respectively from the prior year [2] - Recent changes to analyst estimates reflect shifting business dynamics, with positive revisions indicating confidence in the company's performance [2] - The Zacks Rank system, which assesses estimated changes, currently ranks Skechers at 4 (Sell) [3] Valuation Metrics - Skechers has a Forward P/E ratio of 15.99, aligning with the industry average [3] - The company has a PEG ratio of 0.94, compared to the industry average PEG ratio of 1.62 [3] Industry Overview - The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector and holds a Zacks Industry Rank of 43, placing it in the top 18% of over 250 industries [4] - The Zacks Industry Rank measures the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [4]

Skechers (SKX) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Over the past month, shares of this shoe company have returned -1.6%, compared to the Zacks S&P 500 composite's +1.3% change. During this period, the Zacks Shoes and Retail Apparel industry, which Skechers falls in, has lost 0.6%. The key question now is: What could be the stock's future direction?While ...

Company Overview - Skechers is a well-known footwear and apparel company founded in 1992 and based in California [1] - The company went public in 1999 and currently has a market capitalization of approximately $10 billion [1] Investment Perspective - The investment style focuses on fundamental analysis, seeking companies with strong growth prospects that are trading at low multiples [1] - There is an emphasis on identifying hidden gem companies with solid balance sheets and effective management [1]

In the latest market close, Skechers (SKX) reached $68.48, with a -1.08% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.13%. Meanwhile, the Dow experienced a rise of 0.33%, and the technology-dominated Nasdaq saw a decrease of 0.39%.Shares of the shoe company witnessed a gain of 1.08% over the previous month, trailing the performance of the Consumer Discretionary sector with its gain of 4.45% and the S&P 500's gain of 2.43%.Market participants will be closely followi ...