Skechers EPS Misses Estimates

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]