Core Viewpoint - Skechers reported a decline in stock price following its Q4 2024 financial results, indicating investor concerns over slowing growth and lower-than-expected earnings per share [1][2][3]. Financial Performance - In Q4 2024, Skechers achieved sales of $2.21 billion, reflecting a 13% year-over-year increase, which was near the high end of management's guidance but slightly below market expectations [2]. - The company reported earnings per share (EPS) of $0.65, falling short of management's forecast of $0.70 to $0.75 [2][3]. Growth Outlook - Despite achieving double-digit growth in 2024 and setting all-time sales records, Skechers anticipates a slowdown in growth, projecting sales of at least $9.7 billion in 2025, which represents an increase of 8% [3]. - EPS guidance for 2025 is set at $4.30 to $4.50, indicating a modest year-over-year growth of only 3% to 8%, which suggests a potential contraction in profit margins [3]. Valuation and Stock Buyback - Skechers is currently trading at approximately 15 times forward earnings, which is considered a fair valuation, especially in the context of the stock's recent decline [4]. - The company has authorization to repurchase nearly $800 million in stock, which could be advantageous given the lower share price [4]. Market Position and Long-term Perspective - The company does not appear to be facing significant competitive pressures, as sales have increased in 2024 and are expected to continue rising in 2025 [5]. - Skechers is viewed as a solid long-term investment, although the market may experience fluctuations, and 2025 could present challenges [5].

Core Insights - Skechers U.S.A., Inc. reported fourth-quarter 2024 results with sales exceeding estimates but earnings per share (EPS) falling short, although both metrics showed year-over-year growth [1][4]. Financial Performance - The company achieved sales of $2.212 billion, slightly above the consensus estimate of $2.211 billion, reflecting a 12.8% year-over-year increase driven by 18% growth in domestic sales and 9.8% in international sales [5][6]. - EPS was reported at 65 cents, missing the Zacks Consensus Estimate of 74 cents, but representing a 16.1% increase from the previous year [4]. - On a constant currency basis, EPS was 86 cents, marking a 53.6% increase year-over-year [4]. Sales Breakdown - Wholesale sales increased 17.5% year-over-year to $1.13 billion, while Direct-to-Consumer (DTC) sales rose 8.4% to $1.08 billion [6]. - Region-wise, sales grew 14.2% in the Americas to $1.09 billion, 24.8% in EMEA to $478.6 million, and 3.3% in APAC to $642.4 million [8]. Cost and Margin Analysis - Gross profit increased 13.1% year-over-year to $1.18 billion, with a gross margin of 53.3%, up 20 basis points [9]. - Total operating expenses rose 11.2% to $1.01 billion, but as a percentage of sales, it decreased by 70 basis points to 45.8% [9][10]. Capital Expenditure and Financial Health - As of December 31, 2024, cash and cash equivalents totaled $1.12 billion, with long-term borrowings at $68.5 million and shareholders' equity at $4.28 billion [11][12]. - The company plans capital expenditures of $600-$700 million for 2025, primarily for expanding distribution centers [12]. Share Repurchase and Store Update - In Q4 2024, Skechers repurchased 1.9 million shares for $120 million, with $789.9 million remaining under the share repurchase program [13]. - As of December 31, 2024, Skechers operated 5,296 stores globally, with a net increase of 62 domestic and 206 international stores during the quarter [14]. Future Outlook - For 2025, management targets sales between $9.70 billion and $9.80 billion, with EPS expected between $4.30 and $4.50 [15]. - For Q1 2025, sales are projected to be between $2.40 billion and $2.43 billion, with EPS between $1.10 and $1.15 [15].

Core Insights - Skechers' shares fell 12% in premarket trading due to a disappointing outlook and CEO comments regarding potential tariff impacts [2][6] - The company reported adjusted earnings of $130.3 million (86 cents per share) for Q4, with revenue of $2.21 billion, which was in line with analyst expectations [2][3] - Forward-looking projections for Q1 revenue are expected to be between $2.4 billion and $2.43 billion, with EPS between $1.10 and $1.15, both below analyst consensus estimates [3][4] Financial Performance - Skechers' full-year revenue guidance is between $9.7 billion and $9.8 billion, and EPS is projected to be between $4.30 and $4.50, which are below the expected $9.86 billion and $4.86 per share [4] - The company's Q4 adjusted profits exceeded projections, but the overall outlook has raised concerns among investors [2][7] CEO Commentary - CEO John Vandemore highlighted "several headwinds and uncertainties" for 2025, including exchange rates and macroeconomic weakness in China [5] - The CEO mentioned that the recently announced US tariffs on Chinese goods have affected the company's visibility and may lead to changes in production and pricing strategies [6][7]

Financial Data and Key Metrics Changes - In 2024, Skechers achieved constant currency sales of over $9 billion, a 13% increase, and diluted earnings per share of $4.40, representing a 26% increase [8][25] - The company recorded a strong gross margin of 53.2% and a double-digit operating margin of 10.1% [8][25] - Fourth-quarter sales reached $2.21 billion, reflecting a 13% increase, with earnings per share of $0.65, a 16% increase compared to the prior year [28][35] Business Line Data and Key Metrics Changes - Wholesale sales grew by 17%, with domestic sales increasing by 31% and international sales by 10% [19][30] - Direct-to-consumer sales increased by 8.4%, with international improving by 9.3% and domestic by 6.8% [20][28] - The performance division, including soccer and basketball footwear, is expected to become increasingly important for growth [45] Market Data and Key Metrics Changes - Domestic sales rose 18%, while international sales improved by 10% [9][17] - In the Americas, sales increased by 14%, with EMEA growing by 25% and APAC by 3.3%, led by strong performance in India, Japan, South Korea, and Thailand [18][31] - China experienced a decline of 11% in sales due to a challenging macroeconomic environment [18][32] Company Strategy and Development Direction - Skechers is focused on expanding its product offerings and enhancing its distribution network to meet global consumer needs [13][16] - The company plans to invest in expanding distribution centers in the U.S., Europe, and China to support growth [24][41] - Strategic partnerships and innovative marketing campaigns are being leveraged to enhance brand awareness and drive sales [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as unfavorable foreign currency exchange rates and macroeconomic weakness in China but expressed confidence in long-term strategies [39][41] - The company expects sales in 2025 to range from $9.7 billion to $9.8 billion, with earnings per diluted share projected between $4.30 and $4.50 [40][41] - Management emphasized the importance of maintaining a durable balance sheet and ample liquidity while navigating uncertainties [38][41] Other Important Information - Skechers repurchased approximately 5.2 million shares at a cost of about $330 million during the year [38] - The company ended the year with 5,296 Skechers stores worldwide, including 1,787 company-owned locations [21] Q&A Session Summary Question: Guidance on gross margin for fiscal 2025 - Management indicated that they do not anticipate a material change in gross margin overall, expecting stability with some fluctuations [50][56] Question: US wholesale growth expectations - Management expects to gravitate back to mid-single-digit growth for the wholesale channel, acknowledging the challenges of duplicating last year's nearly 20% growth [65][68] Question: Impact of foreign exchange on EPS - Management noted that foreign exchange impacts are significant, estimating a hit of between 15 and 20 cents on EPS due to the strengthening of the US dollar [70][72] Question: International revenue deceleration - Management clarified that the decline in international revenue was primarily due to challenges in China, while other markets showed robust growth [78][80] Question: Mitigation strategies for tariffs - Management plans to redirect manufacturing relationships, engage with vendors, and consider pricing adjustments to mitigate tariff impacts [90][91]

Core Insights - Skechers reported revenue of $2.21 billion for the quarter ended December 2024, reflecting a year-over-year increase of 12.8% [1] - The earnings per share (EPS) was $0.65, up from $0.56 in the same quarter last year, but fell short of the consensus estimate of $0.74, resulting in an EPS surprise of -12.16% [1] Revenue Performance - Revenue from the Asia Pacific region was $642.40 million, a 3.3% increase year-over-year, but below the average estimate of $671.99 million [4] - Revenue from Europe, Middle East & Africa reached $478.60 million, marking a significant 24.8% year-over-year increase, though it was slightly below the estimate of $490.49 million [4] - The Americas generated $1.09 billion in revenue, exceeding the estimated $1.06 billion, with a year-over-year growth of 14.2% [4] Sales Breakdown - Total wholesale sales amounted to $1.13 billion, surpassing the average estimate of $1.12 billion, and reflecting a 17.5% increase year-over-year [4] - Direct-to-consumer sales totaled $1.08 billion, slightly below the estimate of $1.09 billion, with an 8.4% year-over-year increase [4] - International direct-to-consumer sales were $669.80 million, under the estimate of $701.78 million, showing a 9.3% year-over-year growth [4] - International wholesale sales reached $701 million, below the estimated $730.37 million, with a year-over-year increase of 10.4% [4] - Domestic wholesale sales were $429.70 million, exceeding the estimate of $388.09 million, representing a robust 31.2% year-over-year growth [4] - Domestic direct-to-consumer sales were $411.90 million, slightly above the estimate of $402.75 million, with a year-over-year increase of 6.9% [4] Stock Performance - Skechers shares have returned +7.4% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Performance - Skechers reported quarterly earnings of $0.65 per share, missing the Zacks Consensus Estimate of $0.74 per share, but showing an increase from $0.56 per share a year ago, representing an earnings surprise of -12.16% [1] - The company posted revenues of $2.21 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.05%, and up from $1.96 billion year-over-year [2] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $1.52 on revenues of $2.47 billion, and for the current fiscal year, it is $4.79 on revenues of $9.82 billion [7] - The estimate revisions trend for Skechers is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Market Performance - Skechers shares have increased approximately 10.7% since the beginning of the year, outperforming the S&P 500's gain of 3.1% [3] - The Shoes and Retail Apparel industry, to which Skechers belongs, is currently ranked in the bottom 22% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Core Insights - Skechers U.S.A. reported strong earnings growth in Q4 2024, achieving diluted EPS of $0.65, although it fell short of the $0.75 analyst consensus [2][6] - Revenue for the quarter was $2.212 billion, slightly below the estimated $2.220 billion, but represented a 12.8% year-over-year increase from $1.96 billion [2][3][6] Financial Performance - Q4 2024 metrics included: - EPS (Diluted): $0.65, up 16.1% from $0.56 in Q4 2023 [3] - Revenue: $2.21 billion, a 12.8% increase year-over-year [3] - Gross Margin: 53.3%, an improvement of 20 basis points from the previous year [3] - Net Income: $99.3 million, reflecting a 13.9% increase from $87.2 million in Q4 2023 [3] Business Overview - Skechers U.S.A. operates in approximately 180 countries, focusing on brand recognition, product innovation, and global distribution [4] - The company employs various channels for strategic expansion, including wholesale, direct-to-consumer, and e-commerce [4] Product Development and Innovation - The company emphasizes product development, utilizing advanced technologies for comfort and style, with recent innovations like footwear featuring Hyper Burst Technology [5] - Sustainability practices are integral to the company's strategy, enhancing its corporate responsibility and brand image [5] Global Sales Dynamics - Sales growth was particularly strong in the Americas (14.2%) and EMEA (24.8%), while the Asia Pacific region, especially China, faced challenges with only 3% growth [7] - The company continues to leverage product innovation to maintain its competitive edge despite regional challenges [7] Supply Chain and Inventory Management - Material cost alignments and efficient supply chain operations positively impacted gross margin, which improved by 20 basis points [8] - Inventory management remains a concern due to disruptions, necessitating a focus on cost reduction and supply-demand alignment [8] Future Outlook - For 2025, Skechers U.S.A. projects sales between $9.70 billion and $9.80 billion, with diluted EPS expected to be between $4.30 and $4.50 [9] - The company plans to invest in its distribution network and customer experience to enhance growth [9]

Sales Performance - Full year 2024 sales reached $8.97 billion, a year-over-year increase of 12.1%, or $9.04 billion on a constant currency basis, reflecting a 13.0% increase[4] - Fourth quarter sales were $2.21 billion, a year-over-year increase of 12.8%, with wholesale sales growing 17.5% and Direct-to-Consumer sales growing 8.4%[5] - For fiscal year 2025, the company expects sales between $9.70 billion and $9.80 billion, with diluted earnings per share between $4.30 and $4.50[18] - For the year ended December 31, 2024, total sales reached $8,969.4 million, up 12.1% from $8,000.3 million in 2023[29] - Total sales for the three months ended December 31, 2024, reached $2,212.4 million, an increase of $251.5 million or 12.8% compared to $1,960.9 million in 2023[30] Earnings and Profitability - Diluted earnings per share for 2024 were $4.16, a year-over-year increase of 19.2%, and $4.40 on a constant currency basis, reflecting a 26.1% increase[4] - The company reported net earnings of $639.5 million for 2024, a 17.2% increase from the previous year[14] - Skechers' net earnings for Q4 2024 were $115.4 million, slightly up from $112.1 million in Q4 2023[27] - Net earnings attributable to Skechers U.S.A., Inc. for the three months ended December 31, 2024, were $99.3 million, an increase of $43.1 million or 49.4% compared to $87.2 million in 2023[32] - Diluted earnings per share for the three months ended December 31, 2024, increased to $0.65, up $0.30 or 53.6% from $0.56 in 2023[32] Gross Margin and Profit - Gross margin for the full year improved to 53.2%, an increase of 120 basis points compared to the previous year, driven by lower costs per unit[12] - The gross margin for total sales improved to 53.3% in Q4 2024, up from 53.1% in Q4 2023[29] - Gross profit for Q4 2024 was $1,178.3 million, representing a 13.1% increase compared to $1,041.4 million in Q4 2023[27] - Gross profit for the three months ended December 31, 2024, was $1,178.3 million, up $150.5 million or 14.5% from $1,041.4 million in 2023[32] Expenses and Liabilities - Operating expenses for 2024 increased by 14.7% to $3.86 billion, with selling expenses rising by 18.3% due to higher global demand creation expenditures[13] - Total liabilities rose to $3,635.5 million as of December 31, 2024, compared to $3,147.3 million as of December 31, 2023[25] Store Expansion - The total number of Skechers stores increased to 5,296 by December 31, 2024, with 681 new stores opened during the year[19] Tax and Assets - The effective income tax rate for 2024 was 16.9%, reflecting a favorable mix of earnings in lower tax jurisdictions[15] - The company’s total current assets increased to $4,449.4 million as of December 31, 2024, from $3,952.6 million as of December 31, 2023[25] - Skechers' retained earnings increased to $4,436.2 million as of December 31, 2024, up from $3,796.7 million in 2023[25] Market Performance - Domestic sales increased to $841.6 million, up $128.7 million or 18.0% from $712.9 million in the previous year[30] - International sales totaled $1,370.8 million, reflecting a $122.8 million increase or 9.8% from $1,248.0 million in 2023[30] - Direct-to-Consumer sales increased by 8.4% to $1,081.7 million in Q4 2024, compared to $998.3 million in Q4 2023[29] - Direct-to-Consumer sales in the domestic market for the year ended December 31, 2024, were $1,553.0 million, an increase of $70.6 million or 4.8% from $1,482.4 million in 2023[30] - China sales for the year ended December 31, 2024, were $1,218.2 million, a slight decrease of $10.4 million or 0.9% from $1,228.6 million in 2023[30] Future Outlook - The company anticipates continued growth in both domestic and international markets, focusing on new product development and market expansion initiatives[22] - The company reported a constant currency sales adjustment of $71.8 million for the year ended December 31, 2024, indicating a strong performance when accounting for foreign exchange fluctuations[31]

In its upcoming report, Skechers (SKX) is predicted by Wall Street analysts to post quarterly earnings of $0.74 per share, reflecting an increase of 32.1% compared to the same period last year. Revenues are forecasted to be $2.21 billion, representing a year-over-year increase of 12.8%.Over the last 30 days, there has been a downward revision of 0.9% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial ...

The latest trading session saw Skechers (SKX) ending at $78.24, denoting a +1.97% adjustment from its last day's close. This change outpaced the S&P 500's 0.53% gain on the day. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.25%.Heading into today, shares of the shoe company had gained 14.11% over the past month, outpacing the Consumer Discretionary sector's gain of 2.88% and the S&P 500's gain of 1.24% in that time.The investment community will be paying close atte ...