Skechers(SKX) - 2024 Q4 - Annual Results

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]