Retailer Skechers USA (SKX) has taken an 8.2% haircut this quarter, which has resulted in the stock breaching its year-to-date breakeven level. Now trading at $61.59, the shares are a ways off their June 12 record highs of $75.09. The upside is this has SKX encountering a historically bullish trendline. According to Schaeffer's Senior Quantitative Analyst Rocky White, SKX is within one standard deviation of its 320-day moving average. Over the past three years, the shares have seen four similar signals, and ...

Did you analyze how Skechers (SKX) fared in its international operations for the quarter ending September 2024? Given the widespread global presence of this shoe company, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities. 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 ...

Skechers U.S.A., Inc. (NYSE: SKX ) released its Q3 2024 results , with a growth of 16%, and is expecting a good holiday season. Growth was well distributed across regions, except for a challenged China, a muted DTC inLong-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the competitive ...

Skechers U.S.A., Inc. (NYSE: SKX ), the footwear company, reported its Q3 results on the 24th of October after the market close. The results came with strong growth despite weak market conditions, and profitability stayedI am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers behind a ...

Key Takeaways Skechers' third-quarter profit and sales topped estimates as demand for its shoes boosted revenue to a record high. International sales were up 16.4% from a year ago, and domestic sales added 15.3%. Skechers lifted its full-year outlook for revenue and earnings per share. Skechers (SKX) on Friday reported better-than-expected quarterly results and raised its outlook for the year. The footwear company posted third-quarter earnings per share of $1.26, with revenue up 15.9% year-on-year to a quar ...

Core Insights - Skechers reported revenue of $2.35 billion for Q3 2024, a 15.9% increase year-over-year, with EPS at $1.26 compared to $0.93 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $2.32 billion by 1.30%, and EPS surpassed the consensus estimate of $1.15 by 9.57% [1] Revenue Performance - Geographic Revenue in Asia Pacific was $566 million, below the average estimate of $617.91 million, reflecting a year-over-year increase of 7.4% [1] - Geographic Revenue in Europe, Middle East & Africa reached $625.60 million, exceeding the average estimate of $531.44 million, with a year-over-year increase of 30.2% [1] - Geographic Revenue in the Americas was $1.16 billion, slightly above the estimated $1.11 billion, marking a 13.6% increase year-over-year [1] Sales Breakdown - Total Wholesale sales were $1.42 billion, surpassing the average estimate of $1.33 billion, with an 18.8% year-over-year increase [1] - Total Direct-to-Consumer sales amounted to $931.70 million, below the estimated $955.37 million, but still showing a 9.6% increase year-over-year [1] - International Direct-to-Consumer sales were $530.30 million, slightly above the average estimate of $524.83 million, reflecting a 14.4% year-over-year increase [1] - International Wholesale sales reached $901.40 million, exceeding the estimated $874.23 million [1] - Domestic Wholesale sales were $514.60 million, above the average estimate of $446.81 million [1] - Domestic Direct-to-Consumer sales were $401.40 million, slightly below the estimated $412.27 million, with a year-over-year increase of 3.8% [1] Stock Performance - Skechers shares have returned -5.8% over the past month, contrasting with the Zacks S&P 500 composite's +1.5% change [2] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [2]

Skechers U.S.A., Inc. (NYSE:SKX) Q3 2024 Earnings Conference Call October 24, 2024 4:30 PM ET Company Participants Melissa Tankersley - Digital Marketing Manager David Weinberg - Chief Operating Officer John Vandemore - Chief Financial Officer Conference Call Participants Jay Sole - UBS Laurent Vasilescu - BNP Paribas Jim Duffy - Stifel Alex Straton - Morgan Stanley Chris Nardone - Bank of America Krisztina Katai - Deutsche Bank Krista Zuber - TD Cowen Paul Kearney - Barclays Jesalyn Wong - Evercore Operato ...

Skechers (SKX) came out with quarterly earnings of $1.26 per share, beating the Zacks Consensus Estimate of $1.15 per share. This compares to earnings of $0.93 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.57%. A quarter ago, it was expected that this shoe company would post earnings of $0.94 per share when it actually produced earnings of $0.91, delivering a surprise of -3.19%.Over the last four quarters, the company has ...

[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 ...