Financial Data and Key Metrics Changes - The company achieved record first-quarter sales of $2.41 billion, a 7.1% increase year-over-year, and $2.46 billion on a constant currency basis, up 9% [8][27] - Earnings per share were $1.34, essentially flat compared to the prior year [34] - Gross margin was 52%, down 50 basis points from the previous year, primarily due to lower average selling prices from higher promotions in certain markets [31] Business Line Data and Key Metrics Changes - Direct-to-consumer sales grew 6% year-over-year to $879.4 million, with domestic growth of 11% driven by strong e-commerce performance [27][17] - Wholesale sales increased 7.8% year-over-year to $1.53 billion, with international sales up 9.5% [28][16] - The company ended the quarter with 5,318 Skechers stores worldwide, including 1,821 company-owned locations [18] Market Data and Key Metrics Changes - Domestic and international sales both increased by 7%, with EMEA growing 14% and The Americas growing 8.3% [9][14] - In the Asia Pacific region, sales decreased by 2.6%, primarily due to soft consumer spending in China, but grew 12% when excluding China [10][30] Company Strategy and Development Direction - The company views international markets as its primary growth engine, investing in retail store networks and enhancing distribution efficiencies [10][21] - Skechers aims to expand its distribution centers in the U.S., China, and Europe to manage expected growth and improve delivery efficiency [20][21] - The company is focused on evolving and innovating its footwear to meet consumer needs and drive demand globally [21][42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increasing macroeconomic uncertainty and waning consumer sentiment but expressed confidence in navigating these challenges [9][26] - The company remains committed to its strategic plan and believes it is well-positioned to thrive despite current market dynamics [26][42] - Management did not provide specific revenue or earnings guidance due to the dynamic environment but remains optimistic about growth opportunities [39][38] Other Important Information - Inventory increased by 30% year-over-year to $1.77 billion, primarily due to elongated transit times, but decreased by 7.6% compared to the prior quarter [35][36] - Capital expenditures for the quarter were $147.1 million, focusing on distribution infrastructure and new store openings [36] Q&A Session Summary Question: Can you discuss the company's production in China and tariff strategies? - Management emphasized that they are looking at sourcing optimization, vendor cost sharing, and pricing adjustments to manage tariffs, with two-thirds of the business being outside the U.S. [49][51] Question: What markets are experiencing notable volatility? - The U.S. and China are noted as presenting the most uncertainty, with robust consumer demand for Skechers products remaining strong in most other markets [60][62] Question: How do you view the potential for price increases in response to tariffs? - Management indicated that pricing is being considered but will depend on consumer receptiveness and the overall impact on the business [78][80] Question: What is the company's approach to inventory management amidst tariff changes? - The company is managing inventory closely, with a focus on minimizing at-risk inventory and ensuring high fidelity to delivery [97][99] Question: Are there specific products that are currently made in China and not in Vietnam? - Management noted that most kids' footwear is produced in China due to quality and cost considerations, but they have the ability to back up production in multiple locations [145]

Market Performance - Markets closed higher for the third consecutive session, with the Dow up 486 points (+1.23%), S&P 500 up 108 points (+2.03%), Nasdaq up 457 points (+2.74%), and Russell 2000 up 38 points (+2.00%) [1] - The indexes have increased between +2% to nearly +5% this week, despite initial concerns regarding Jerome Powell's position as Fed Chair [1] Key Stocks - The "Magnificent 7" stocks, including NVIDIA (NVDA), Amazon (AMZN), Tesla (TSLA), and Microsoft (MSFT), all rose over +3% during the session, although they remain down year-to-date, with Microsoft down -8% and Tesla down -35% [2] Economic Reports - Existing Home Sales for March were reported at 4.02 million units, below the anticipated 4.13 million and February's 4.27 million, indicating a continued housing market challenge [3] - Durable Goods Orders for March increased by +9.2%, significantly surpassing the estimated +1.6%, suggesting businesses may be pulling forward orders ahead of tariff announcements [4] - Initial Jobless Claims remained stable at 222K, reflecting a relatively calm labor market despite recent layoffs [4] Q1 Earnings Reports - Alphabet (GOOGL) reported Q1 earnings of $2.81 per share, exceeding the expected $2.02, with revenues of $76.50 billion compared to the $75.53 billion consensus [5] - Alphabet's cloud revenues reached $12.26 billion, up from $9.57 billion year-over-year, and YouTube ad revenue grew by 90 basis points to +8.93% [6] - GOOGL's shares rose +5% in after-market trading following a +2.5% increase prior to the earnings release, although it remains down roughly -10% year-to-date [6] Other Company Earnings - Intel (INTC) reported Q1 earnings of +$0.13 per share, surpassing the expected $0.01, with revenues of $12.7 billion, slightly above the $12.3 billion estimate [7] - Despite outperforming expectations, Intel's shares fell -5% in late trading due to a pullback in next-quarter guidance [7] - Skechers (SKX) reported Q1 earnings of $1.34 per share, beating the expected $1.18, but revenues of $2.41 billion fell short of the $2.44 billion projection, leading to an -8% decline in shares [8]

Core Insights - Skechers reported revenue of $2.41 billion for the quarter ended March 2025, reflecting a year-over-year increase of 7.1% [1] - The earnings per share (EPS) was $1.34, slightly up from $1.33 in the same quarter last year, with an EPS surprise of +14.53% against the consensus estimate of $1.17 [1] Revenue Performance - Geographic Revenue in Asia Pacific was $589 million, down 2.6% year-over-year and below the estimated $618.58 million [4] - Domestic Wholesale sales reached $496.20 million, representing a 4.2% increase year-over-year, but below the average estimate of $533.12 million [4] - Domestic Direct-to-Consumer sales were $357.50 million, exceeding the estimate of $335.74 million with a year-over-year growth of 10.8% [4] - Revenue from Europe, Middle East & Africa was $718.20 million, up 14.4% year-over-year and above the estimated $708.61 million [4] - International Direct-to-Consumer sales were $521.90 million, slightly below the estimate of $543.09 million, with a year-over-year increase of 2.9% [4] - Revenue from the Americas was $1.10 billion, reflecting an 8.3% year-over-year increase but below the estimated $1.12 billion [4] - International Wholesale sales were $1.04 billion, slightly above the estimate of $1.03 billion, with a year-over-year growth of 9.6% [4] - Total Wholesale sales amounted to $1.53 billion, a 7.8% increase year-over-year, but below the average estimate of $1.55 billion [4] - Total Direct-to-Consumer sales were $879.40 million, a 6% increase year-over-year, but below the estimate of $885.27 million [4] Stock Performance - Skechers shares have returned -14.8% over the past month, compared to a -5.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Skechers reported quarterly earnings of $1.34 per share, exceeding the Zacks Consensus Estimate of $1.17 per share, and showing a slight increase from $1.33 per share a year ago, resulting in an earnings surprise of 14.53% [1] - The company posted revenues of $2.41 billion for the quarter ended March 2025, which was 1.17% below the Zacks Consensus Estimate, but an increase from $2.25 billion year-over-year [2] - Skechers shares have declined approximately 27.3% year-to-date, contrasting with the S&P 500's decline of 8.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.97 on revenues of $2.36 billion, and for the current fiscal year, it is $4.42 on revenues of $9.72 billion [7] - The estimate revisions trend for Skechers is mixed, leading to a Zacks Rank of 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Shoes and Retail Apparel industry, to which Skechers belongs, is currently ranked in the bottom 9% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Skechers may be influenced by the overall industry outlook, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] Competitor Insights - Steven Madden, a competitor in the same industry, is expected to report quarterly earnings of $0.46 per share, reflecting a year-over-year decline of 29.2%, with revenues projected at $561.97 million, a 1.7% increase from the previous year [9][10]

Sales Performance - Record quarterly sales of $2.41 billion, a year-over-year increase of 7.1%, with international sales representing 65% of total sales [2] - Total sales for Q1 2025 reached $2,411.6 million, an increase of 7.1% compared to $2,251.6 million in Q1 2024 [21] - Direct-to-Consumer sales increased to $879.4 million in Q1 2025, a rise of 6.0% from $829.9 million in Q1 2024 [23] - Wholesale sales grew to $1,532.2 million in Q1 2025, representing a 7.8% increase from $1,421.7 million in Q1 2024 [23] Profitability - Gross profit reached $1.25 billion, with a gross margin of 52.0%, a decrease of 50 basis points from the previous year [4] - Gross profit for Q1 2025 was $1,254.4 million, up from $1,181.6 million in Q1 2024, reflecting a growth of 6.2% [21] - Net earnings attributable to Skechers were $202.4 million, with diluted earnings per share of $1.34 [8] - Net earnings attributable to Skechers U.S.A., Inc. for Q1 2025 were $202.4 million, a decrease of 13.9% from $206.6 million in Q1 2024 [26] - Diluted earnings per share for Q1 2025 were $1.34, compared to $1.33 in Q1 2024, reflecting a slight increase [26] Expenses and Liabilities - Operating expenses increased by $106.4 million, or 12.1%, with selling expenses rising by 18.3% [7] - Total liabilities decreased to $3,573.9 million as of March 31, 2025, compared to $3,635.5 million as of December 31, 2024 [19] Cash and Inventory - Cash, cash equivalents, and investments totaled $1.24 billion, a decrease of 10.4% from the previous quarter [11] - Cash and cash equivalents decreased to $993.1 million as of March 31, 2025, from $1,116.5 million as of December 31, 2024 [19] - Inventory decreased by $145.6 million, or 7.6%, to $1.77 billion [11] Guidance and Economic Outlook - The company is not providing financial guidance due to macroeconomic uncertainty and has withdrawn its annual 2025 guidance [12]

As Skechers U.S.A., Inc. (SKX) gears up to unveil its first-quarter 2025 earnings results on April  24, after the market closes, 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. The Zacks Consensus Estimate for revenues stands at $2.44 billion, which indicates a notable 8.3% improve ...

Group 1: Earnings Season Overview - The earnings season has commenced, with several consumer-facing companies, including Chipotle Mexican Grill (CMG), American Airlines (AAL), and Skechers (SKX), scheduled to report this week [1] - Guidance from these companies will be critical in assessing the state of the consumer and their post-earnings stock performance [1][8] Group 2: Chipotle Mexican Grill (CMG) - CMG shares have declined nearly 25% in 2025, underperforming the S&P 500, with negative EPS revisions leading to a Zacks Consensus EPS estimate of $0.28, down nearly 10% since January [2] - Year-over-year growth is projected at 3.7%, with sales expected to increase by 8.5% to $2.9 billion, reflecting a 5% downward revision [3] - CMG has consistently posted double-digit percentage year-over-year sales growth, with the latest period showing sales of $2.8 billion, a 13% improvement [5] Group 3: American Airlines (AAL) - AAL's guidance will be a significant factor in its earnings release, especially following Delta Air Lines' (DAL) recent results, which indicated a cautious outlook due to economic uncertainty [10] - Analysts have reduced their EPS expectations for AAL, reflecting a broader theme of uncertainty that is likely to influence the stock's movement post-earnings [11][13] Group 4: Skechers (SKX) - SKX shares have dropped over 30% in 2025, following a strong multi-year performance, with analysts cutting EPS expectations by 23% to a current estimate of $1.18 [14][16] - Revenue expectations for SKX remain stable, with quarterly sales projected at $2.4 billion, while margins will be a key focus in the earnings report [16][19] - The stock has seen a decline of approximately 9% over the past two years, suggesting that much of the negative sentiment may already be reflected in the share price [19]

Analysts on Wall Street project that Skechers (SKX) will announce quarterly earnings of $1.18 per share in its forthcoming report, representing a decline of 11.3% year over year. Revenues are projected to reach $2.44 billion, increasing 8.3% from the same quarter last year.The current level reflects a downward revision of 3.6% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over ...

Company Performance - Skechers (SKX) closed at $47.63, marking a +1.97% move from the prior day, outperforming the S&P 500's gain of 0.13% [1] - Over the past month, Skechers shares have lost 18.72%, significantly underperforming the Consumer Discretionary sector's loss of 7.24% and the S&P 500's loss of 6.3% [1] Upcoming Earnings - The upcoming earnings release is scheduled for April 24, 2025, with an expected EPS of $1.18, indicating an 11.28% decline compared to the same quarter last year [2] - Revenue is predicted to be $2.44 billion, reflecting an 8.31% increase compared to the same quarter of the previous year [2] Full Year Estimates - For the full year, earnings are projected at $4.42 per share and revenue at $9.72 billion, showing changes of +6.25% and +8.42% respectively from the preceding year [3] - Recent changes to analyst estimates indicate a positive outlook for the company's business and profitability [3] Valuation Metrics - Skechers is currently trading at a Forward P/E ratio of 10.57, which is a premium compared to its industry's Forward P/E of 9.54 [6] - The company has a PEG ratio of 0.75, lower than the average PEG ratio of 0.83 for the Shoes and Retail Apparel industry [7] Industry Context - The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector and currently holds a Zacks Industry Rank of 226, placing it in the bottom 9% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Skechers despite higher revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - Skechers is expected to report quarterly earnings of $1.18 per share, reflecting an 11.3% decrease year-over-year [3]. - Revenue projections stand at $2.44 billion, indicating an 8.3% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 3.62% over the last 30 days, indicating a bearish sentiment among analysts [4]. - The Most Accurate Estimate for Skechers is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.54% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive reading is a strong predictor of an earnings beat, particularly when combined with a favorable Zacks Rank [8]. - Skechers currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [11]. Historical Performance - In the last reported quarter, Skechers was expected to earn $0.74 per share but only achieved $0.65, resulting in a surprise of -12.16% [12]. - Over the past four quarters, Skechers has beaten consensus EPS estimates twice [13]. Conclusion - Skechers does not appear to be a compelling candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [16].