[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 |

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-14429 SKECHERS U.S.A., INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) 228 Manhattan Beach Blvd. Ma ...

Financial Data and Key Metrics Changes - The company reported record second-quarter sales of $2.16 billion, an increase of 7.2% year-over-year, or $145 million compared to last year [8][19] - On a constant currency basis, sales increased by 8.7% to $2.19 billion [8][19] - Gross margins improved to 54.9%, a 220 basis point increase from the previous year [19][25] - Earnings per share were $0.91, a 7.1% decrease compared to the prior year, but $0.97 on a constant currency basis [27][19] Business Line Data and Key Metrics Changes - Direct-to-consumer sales grew by 9.2% year-over-year, exceeding $1 billion for the first time in the company's history [21][16] - Domestic direct-to-consumer sales increased by 1.4%, while international sales rose by 15% [21][16] - Wholesale sales increased by 5.5% year-over-year, driven by a 14% increase in domestic wholesale [23][19] Market Data and Key Metrics Changes - Domestic sales increased by 7.7%, while international sales grew by 6.9%, representing 60% of total sales [14][19] - By region, sales in the Americas increased by 7.2%, EMEA by 14%, and APAC by 2.2% [14][24] - In China, sales grew by 3.4% year-over-year, with a 7% increase on a constant currency basis [25][19] Company Strategy and Development Direction - The company announced a new $1 billion share repurchase plan, enhancing its existing program [8][29] - Skechers aims to achieve $10 billion in annual sales by 2026, focusing on expanding its direct-to-consumer segment and global brand presence [18][30] - The company is investing in local production in India to navigate regulatory hurdles and improve supply chain efficiency [15][49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2024, citing strong order flow and consumer demand despite macroeconomic challenges [20][31] - The company is adjusting its full-year guidance upward due to improved visibility into the order book and continued positive consumer response to its products [20][19] - Management acknowledged challenges in the supply chain and regulatory environments but remains confident in the long-term growth potential [15][31] Other Important Information - The company ended the quarter with 5,267 Skechers branded stores worldwide, including 1,702 company-owned locations [17] - Capital expenditures for the quarter were focused on new store openings and direct-to-consumer technologies [28] - The company is actively addressing supply chain disruptions and inventory imbalances caused by increased transit times [15][27] Q&A Session All Questions and Answers Question: Can you explain the sources of the raise in guidance? - Management indicated that better visibility into the back half order book, particularly on the wholesale side, and strong order flow contributed to the raised guidance [34][35] Question: What are the expectations for consumer behavior in the footwear retail landscape? - Management noted a decline in foot traffic in brick-and-mortar stores but strong performance in e-commerce, indicating a shift in consumer purchasing behavior [39][40] Question: Can you elaborate on the impact of the regulatory environment in India? - Management acknowledged a significant impact from regulatory changes but expressed optimism about local production improvements and long-term opportunities in the market [49][50] Question: What are the expectations for wholesale growth in the back half of the year? - Management expects continued strength from direct-to-consumer sales and a strong domestic wholesale order book to drive growth in the second half [56][76] Question: How is the company addressing potential tariff impacts? - Management stated that while there is exposure to China, they are diversifying production and are prepared to react to any changes in the tariff landscape [78][79]

SKECHERS ANNOUNCES SECOND QUARTER 2024 FINANCIAL RESULTS AND BOARD AUTHORIZED $1 BILLION SHARE REPURCHASE PROGRAM LOS ANGELES, CA – July 25, 2024 – Skechers U.S.A., Inc. ("Skechers" or the "Company") (NYSE:SKX), The Comfort Technology Company TM and a global footwear leader, today announced financial results for the second quarter ended June 30, 2024. Second Quarter Highlights "Skechers achieved a new second quarter sales record of $2.16 billion driven by the strong demand for our diverse portfolio of comfo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-14429 SKECHERS U.S.A., INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) 228 Manhattan Beach Blvd. Manhattan Beach, California 90266 (Address of principal executive office) (Zip Code) For the quarterly period ended March 31, 2024 or ☐ TRANS ...

Skechers U.S.A., Inc. (NYSE:SKX) Q1 2024 Earnings Conference Call April 25, 2024 4:30 PM ET Company Participants Karen Lozano - General Manager of Store 2 David Weinberg - Chief Operating Officer John Vandemore - Chief Financial Officer Conference Call Participants Jay Sole - UBS Laurent Vasilescu - BNP Paribas Jim Duffy - Stifel Krista Zuber - TD Cowen Rick Patel - Raymond James Adrienne Yih - Barclays Tom Nikic - Wedbush Jesalyn Wong - Evercore Chris Nardone - Bank of America Alex Straton - Morgan Stanley ...

LOS ANGELES, CA – April 25, 2024 – Skechers U.S.A., Inc. ("Skechers" or the "Company") (NYSE:SKX), The Comfort Technology Company TM and a global footwear leader, today announced financial results for the first quarter ended March 31, 2024. First Quarter Highlights Exhibit 99.1 SKECHERS ANNOUNCES FIRST QUARTER 2024 FINANCIAL RESULTS AND RECORD SALES OF $2.25 BILLION "For the first quarter, Skechers achieved a new sales record of $2.25 billion, EPS of $1.33, gross margins of 52.5% and an operating margin of ...

Financial Data and Key Metrics Changes - The company achieved a record annual sales of $8 billion, an increase of $556 million compared to the previous year, with fourth-quarter sales reaching $1.96 billion, up 4.4% year-over-year [5][15] - Gross margin for the year was a record 51.9%, with fourth-quarter gross margins at 53.1%, an increase of 470 basis points from the prior year [5][18] - Earnings per share for the year were $3.49, marking a significant achievement for the brand [14] Business Line Data and Key Metrics Changes - Direct-to-consumer sales grew 20% year-over-year, exceeding 50% of total sales for the first time, driven by a 27% increase internationally and a 12% increase domestically [9][15] - Wholesale sales decreased 8.3% year-over-year to $962.6 million, with domestic wholesale down 10% and international wholesale down 7.1% [16][10] - The company opened 67 company-owned stores in the quarter, bringing the total to 1,648 locations, and plans to open 140 to 160 stores worldwide in 2024 [12][21] Market Data and Key Metrics Changes - International sales increased 7%, representing approximately 64% of total sales in the fourth quarter, with notable growth in Asia Pacific, where sales rose 15% year-over-year [9][17] - In China, sales grew 22%, driven by strong performance during key holiday periods, while EMEA sales decreased 7.3% year-over-year [17][10] Company Strategy and Development Direction - The company is focused on expanding its product categories, including the introduction of football and basketball lines, and enhancing its direct-to-consumer and wholesale businesses [6][8] - Strategic partnerships with athletes and celebrities are being leveraged to enhance brand visibility and consumer engagement [7][8] - The company aims to maintain a strong inventory position while managing supply chain challenges and investing in logistics capabilities [13][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic challenges, including inflation and rising interest rates, but expressed optimism about returning to growth in the wholesale segment in 2024 [14][22] - The company expects sales for 2024 to range between $8.6 billion and $8.8 billion, with net earnings per share projected between $3.65 and $3.85 [22][23] - Management remains confident in the strength of the brand and ongoing consumer demand for its products [25] Other Important Information - The company reported a 16% year-over-year reduction in inventory levels, indicating improved inventory management [13][20] - Capital expenditures for the quarter were $85 million, with plans to invest between $350 million and $400 million in 2024 to support strategic priorities [21][23] Q&A Session Summary Question: U.S. wholesale business performance - Management clarified that domestic wholesale was down 10%, not 14%, and noted a cautious optimism for growth in 2024 based on improved order trends [28][29] Question: Performance in China - Management expressed satisfaction with the 22% growth in China and indicated early January performance was encouraging, suggesting a recovery trend [30][31] Question: Guidance for EBIT margins - Management indicated expectations for favorable gross margins in Q1, with a continued focus on achieving double-digit operating margins [37][38] Question: Store openings and productivity - Management emphasized the importance of opening the right type of stores globally and indicated plans for continued expansion beyond the current store count [42][44] Question: Impact of inventory congestion - Management described inventory congestion as temporary and specific to certain customers, with expectations for recovery in 2024 [46][48] Question: Consumer trends and gross margins - Management noted that consumers continue to trade up within the product portfolio, which may not significantly impact gross margins year-over-year [50][51] Question: Shipping and freight costs - Management reported that current shipping conditions are manageable, with early inventory purchases mitigating potential delays [53][54] Question: Growth opportunities in new categories - Management highlighted significant growth opportunities in football and basketball, with a cautious approach to market entry [57][58] Question: Direct-to-consumer growth outlook - Management expects continued growth in the direct-to-consumer segment, albeit at a slower pace than the previous year [60][62]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-14429 SKECHERS U.S.A., INC. (Exact name of registrant as specified in its charter) Delaware 95-4376145 Securities registered pursuant to Section 12(b) of the Act: | Titl ...

Skechers U.S.A., Inc. (NYSE:SKX) Q3 2023 Earnings Conference Call October 26, 2023 4:30 PM ET Company Participants David Roche - FP&A David Weinberg - COO John Vandemore - CFO Conference Call Participants Jay Sole - UBS Laurent Vasilescu - BNP Paribas Krista Zuber - TD Cowen Gabriella Carbone - Deutsche Bank Jim Duffy - Stifel Alex Straton - Morgan Stanley Tom Nikic - Wedbush Securities Abbie Zvejnieks - Piper Sandler Operator Greetings, and welcome to the Skechers Third Quarter 2023 Earnings Conference Ca ...