Skechers U.S.A., Inc. (“Skechers” or the “Company”) (NYSE:SKX),
The Comfort Technology CompanyTM and a global footwear leader,
today announced financial results for the second quarter ended June
30, 2024.
Second Quarter Highlights
- Record second quarter sales of $2.16 billion, a 7.2%
increase, and constant currency sales of $2.19 billion, an 8.7%
increase
- Direct-to-Consumer sales grew 9.2%
- Wholesale sales grew 5.5%
- Diluted earnings per share of $0.91
- New $1 billion share repurchase program
“Skechers achieved a new second quarter sales record of $2.16
billion driven by the strong demand for our diverse portfolio of
comfortable and innovative footwear,” said David Weinberg, Chief
Operating Officer of Skechers. “The growth resulted from sales
increases of 9% in Direct-to-Consumer and 6% in Wholesale, as well
as increases of 7% internationally and 8% domestically. We
continued to achieve growth across all regions including 7% in the
Americas; 14% in Europe, the Middle East and Africa; and 2% in Asia
Pacific. International direct-to-consumer and domestic wholesale
were particularly bright spots, increasing 15% and 14%
respectively. These international increases are noteworthy given
substantial headwinds from foreign currency, a lackluster 6-18 in
China, and supply chain disruptions related to the Suez Canal
crisis. That said, we are extremely encouraged by the demand for
Skechers product as demonstrated in second half orders, which has
led us to raise our full-year outlook for sales and earnings. As we
look to the remainder of the year and beyond, we remain focused on
enhancing our global infrastructure, managing inventory levels, and
driving efficiencies to achieve profitable growth.”
“This quarter marked the 25th anniversary of our initial public
offering. As we celebrated this event, we also achieved record
second quarter sales and further solidified our position as the
third largest athletic footwear company in the world by continuing
to deliver comfortable, and innovative footwear worldwide,” began
Robert Greenberg, Chief Executive Officer. “I couldn’t be prouder
of the accomplishments of the entire Skechers organization and
appreciative of our strong partnerships with our customers and
growing roster of elite ambassadors, such as the recently signed
Philadelphia 76ers basketball star Joel Embiid, as well as
collaborations with distinguished brands such as John Deere. Team
Skechers now includes numerous athletes competing on global stages,
including Golden Boot winner, Euro Cup finalist and Captain of the
England football team, Harry Kane; recently announced Skechers
ambassador and 2022-2023 NBA most valuable player Joel Embiid, who
is playing for the United States; British golfer Matt Fitzpatrick;
Canadian golfer Brooke Henderson; Spanish race walker Diego Garcia
and newly signed American beach volleyball players Andy Benesh and
Miles Partain, who will be playing in Skechers branded uniforms.
This diverse team of world class athletes and celebrities,
including Martha Stewart and Snoop Dogg, drive awareness and
purchase intent for Skechers. Our first commercial featuring Harry
Kane aired during the second quarter, and we recently completed
several new campaigns featuring him alongside former UK footballer
and Skechers ambassador Jamie Redknapp and superstar Snoop Dogg,
who will be a broadcast commentator in Paris. Additionally, our
football footwear launched globally this month, Skechers x John
Deere is launching next month, and basketball footwear will be
released globally in August. We are committed to strategically
delivering comfort footwear and apparel for all walks of life,
supporting our vast offering with targeted marketing, and building
our in-store presence globally.”
Second Quarter 2024 Financial
Results
Three Months Ended June
30,
Change
(in millions, except per share data)
2024
2023
$
%
Sales
$
2,157.6
$
2,012.5
145.1
7.2
Gross profit
1,184.4
1,060.5
123.9
11.7
Gross margin
54.9
%
52.7
%
220 bps
Operating expenses
977.9
842.8
135.1
16.0
As a % of sales
45.3
%
41.9
%
340 bps
Earnings from operations
206.5
217.7
(11.2
)
(5.1
)
Operating margin
9.6
%
10.8
%
(120) bps
Net earnings attributable to Skechers
U.S.A., Inc.
140.3
152.8
(12.5
)
(8.2
)
Diluted earnings per share
$
0.91
$
0.98
(0.07
)
(7.1
)
Second quarter sales increased 7.2% as a result of a 6.9%
increase internationally and a 7.7% increase domestically.
Direct-to-Consumer increased 9.2% and Wholesale increased 5.5%. On
a constant currency basis, sales increased 8.7%.
Wholesale sales grew $59.1 million, or 5.5%, including increases
in AMER of 10.3% and EMEA of 3.9%, partially offset by a decrease
in APAC of 2.6%. Wholesale volume increased 6.4% and average
selling price declined 0.8%.
Direct-to-Consumer sales grew $86.0 million, or 9.2%, including
increases in EMEA of 40.6%, AMER of 4.1%, and APAC of 5.8%.
Direct-to-Consumer volume increased 10.2% and average selling price
decreased 1.0%.
Gross margin was 54.9%, an increase of 220 basis points,
primarily due to lower costs per unit, driven by lower freight and
favorable mix of Direct-to-Consumer volumes.
Operating expenses increased $135.1 million, or 16.0%, and as a
percentage of sales increased 340 basis points to 45.3%. Selling
expenses increased $48.8 million, or 26.1%, and as a percentage of
sales increased 160 basis points to 10.9%. The increase was due to
higher demand creation expenditures. General and administrative
expenses increased $86.4 million, or 13.2%, and as a percentage of
sales increased 180 basis points to 34.4%. Increased expenses were
primarily driven by increased labor and facility costs, including
rent and depreciation.
Earnings from operations decreased $11.2 million, or 5.1%, to
$206.5 million.
Net earnings were $140.3 million and diluted earnings per share
were $0.91 compared with prior year net earnings of $152.8 million
and diluted earnings per share of $0.98.
In the second quarter, the Company’s effective income tax rate
was 19.7%.
“In the face of significant operational and foreign exchange
headwinds, Skechers delivered meaningful sales growth during the
quarter, demonstrating the strength of our brand as the comfort
technology leader,” stated John Vandemore, Chief Financial Officer
of Skechers. “Demand for our innovative and diverse product
portfolio remains robust, leading us to raise both sales and
earnings expectations for the full year. We remain committed to and
confident of achieving our long-term target of $10 billion in sales
by 2026 and, with a new $1 billion share repurchase authorization,
continuing to return cash to shareholders in a disciplined
manner.”
Six Months 2024 Financial
Results
Six Months Ended June
30,
Change
(in millions, except per share data)
2024
2023
$
%
Sales
$
4,409.2
$
4,014.4
394.8
9.8
Gross profit
2,366.1
2,039.1
327.0
16.0
Gross margin
53.7
%
50.8
%
290 bps
Operating expenses
1,860.7
1,597.8
262.9
16.5
As a % of sales
42.2
%
39.8
%
240 bps
Earnings from operations
505.3
441.3
64.0
14.5
Operating margin
11.5
%
11.0
%
50 bps
Net earnings attributable to Skechers
U.S.A., Inc.
346.9
313.2
33.7
10.8
Diluted earnings per share
$
2.24
$
2.00
0.24
12.0
Year-to-date sales increased 9.8%, reflecting an 11.1% increase
in international sales and a 7.8% increase domestically.
Direct-to-Consumer increased 12.7% and Wholesale increased 7.9%. On
a constant currency basis, sales increased 11.0%.
Wholesale sales increased $186.2 million, or 7.9%, due to
increases in AMER of 8.0%, EMEA of 8.4%, and APAC of 6.7%.
Wholesale volume increased 8.3% and average selling price declined
0.4%.
Direct-to-Consumer sales grew $208.6 million, or 12.7%, due to
increases in EMEA of 48.3%, APAC of 10.7%, and AMER of 6.8%.
Direct-to-Consumer volume increased 12.5% and average selling price
increased 0.2%.
Gross margin was 53.7%, an increase of 290 basis points, due to
lower costs per unit, driven by lower freight.
Operating expenses increased $262.9 million or 16.5%. As a
percentage of sales, operating expenses increased 240 basis points
to 42.2%. Selling expenses increased $76.7 million or 24.3%,
primarily due to higher global demand creation expenditures.
General and administrative expenses increased $186.3 million or
14.5%, primarily driven by labor and increased facility costs,
including rent and depreciation.
Earnings from operations increased $64.0 million to $505.3
million, resulting in an operating margin of 11.5%.
Net earnings were $346.9 million and diluted earnings per share
were $2.24, an increase of 12.0% over the prior year.
The Company’s effective income tax rate was 19.3%.
Balance Sheet
Cash, cash equivalents and investments totaled $1.55 billion, an
increase of $161.4 million, or 11.6% from December 31, 2023, due to
earnings and proceeds from borrowings of $63.9 million, partially
offset by capital expenditures of $169.5 million and $120.0 million
of share repurchases.
Inventory was $1.51 billion, a decrease of $10.9 million or 0.7%
from December 31, 2023.
Share Repurchase
During the second quarter, the Company repurchased 0.9 million
shares of its Class A common stock at a cost of $60.0 million.
On July 23, 2024, the Company’s Board of Directors authorized a
share repurchase program effective July 25, 2024, pursuant to which
the Company may, from time to time, purchase shares of its Class A
common stock, for an aggregate repurchase price not to exceed $1.0
billion. The new share repurchase program expires on July 25, 2027,
and does not obligate the Company to acquire any particular amount
of shares. The new share repurchase program replaces the previous
share repurchase program authorized in 2022.
Outlook
For the third quarter of 2024, the Company believes it will
achieve sales between $2.30 and $2.35 billion and diluted earnings
per share of between $1.10 and $1.15. Further, the Company believes
that for the fiscal year 2024, it will achieve sales between $8.875
and $8.975 billion and diluted earnings per share of between $4.08
and $4.18.
Store Count
Number of Stores
December 31, 2023
Opened
Closed
June 30, 2024
Domestic stores
563
25
(12
)
576
International stores
1,085
98
(57
)
1,126
Distributor, licensee and franchise
stores
3,520
194
(149
)
3,565
Total Skechers stores
5,168
317
(218
)
5,267
Second Quarter 2024 Conference Call
The Company will host a conference call at 4:30 p.m. ET / 1:30
p.m. PT on July 25, 2024 to discuss its second quarter 2024
financial results. The call can be accessed on the Investor
Relations section of the Company’s website at
investors.skechers.com. For those unable to participate during the
live broadcast, a replay will be available beginning July 25, 2024,
at 7:30 p.m. ET, through August 8, 2024, at 11:59 p.m. ET. To
access the replay, dial 844-512-2921 (U.S.) or 412-317-6671
(International) and use passcode: 13747211.
About Skechers U.S.A., Inc.
Skechers, The Comfort Technology Company® based in Southern
California, designs, develops and markets a diverse range of
lifestyle and performance footwear, apparel and accessories for
men, women and children. The Company’s collections are available in
180 countries and territories through department and specialty
stores, and direct to consumers through skechers.com, other digital
stores and approximately 5,200 Skechers retail stores. A Fortune
500® company, Skechers manages its international business through a
network of wholly-owned subsidiaries, joint venture partners, and
distributors. For more information, please visit about.skechers.com
and follow us on Facebook, Instagram and TikTok.
Reference in this press release to “Sales” refers to Skechers’
net sales reported under GAAP. This announcement contains
forward-looking statements that are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995, Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
These forward-looking statements may include, without limitation,
Skechers’ future domestic and international growth, financial
results and operations including expected net sales and earnings,
its development of new products, future demand for its products,
its planned domestic and international expansion, opening of new
stores and additional expenditures, and advertising and marketing
initiatives. Forward-looking statements can be identified by the
use of forward-looking language such as “believe,” “anticipate,”
“expect,” “estimate,” “intend,” “plan,” “project,” “will,” “could,”
“may,” “might,” or any variations of such words with similar
meanings. Any such statements are subject to risks and
uncertainties that could cause actual results to differ materially
from those projected in forward-looking statements. Factors that
might cause or contribute to such differences include the
disruption of business and operations due to` delays or disruptions
in our supply chain; international economic, political and market
conditions including the effects of inflation and foreign currency
exchange rate fluctuations around the world, the challenging
consumer retail markets in the United States and the impact of
wars, acts of war and other conflicts around the world; sustaining,
managing and forecasting costs and proper inventory levels; losing
any significant customers; decreased demand by industry retailers
and cancellation of order commitments due to the lack of popularity
of particular designs and/or categories of products; maintaining
brand image and intense competition among sellers of footwear for
consumers, especially in the highly competitive performance
footwear market; anticipating, identifying, interpreting or
forecasting changes in fashion trends, consumer demand for the
products and the various market factors described above; sales
levels during the spring, back-to-school and holiday selling
seasons; and other factors referenced or incorporated by reference
in Skechers’ annual report on Form 10-K for the year ended December
31, 2023 and its quarterly reports on Form 10-Q in 2024. Taking
these and other risk factors, the dynamic nature of these
circumstances means that what is stated in this press release could
change at any time, and as a result, actual results could differ
materially from those contemplated by such forward-looking
statements. The risks included here are not exhaustive. Skechers
operates in a very competitive and rapidly changing environment.
New risks emerge from time to time and we cannot predict all such
risk factors, nor can we assess the impact of all such risk factors
on our business or the extent to which any factor, or combination
of factors, may cause actual results to differ materially from
those contained in any forward-looking statements. Given these
risks and uncertainties, you should not place undue reliance on
forward-looking statements as a prediction of actual results.
Moreover, reported results should not be considered an indication
of future performance.
SKECHERS U.S.A., INC. AND
SUBSIDIARIES
Condensed Consolidated Balance
Sheets
(Unaudited)
As of
As of
(in thousands)
June 30, 2024
December 31, 2023
ASSETS
Current assets
Cash and cash equivalents
$
1,280,430
$
1,189,910
Short-term investments
130,111
72,595
Trade accounts receivable, net
1,027,231
860,300
Other receivables
77,921
82,253
Inventory
1,514,512
1,525,409
Prepaid expenses and other
223,819
222,137
Total current assets
4,254,024
3,952,604
Property, plant and equipment, net
1,587,433
1,506,690
Operating lease right-of-use assets
1,327,795
1,276,171
Deferred tax assets
435,404
450,574
Long-term investments
137,379
123,996
Goodwill
101,230
101,230
Other assets, net
131,686
136,086
Total non-current assets
3,720,927
3,594,747
TOTAL ASSETS
$
7,974,951
$
7,547,351
LIABILITIES, REDEEMABLE
NONCONTROLLING INTEREST AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable
$
1,176,668
$
1,008,001
Accrued expenses
305,144
320,105
Operating lease liabilities
286,535
274,296
Current installments of long-term
borrowings
292,891
46,571
Short-term borrowings
—
11,894
Total current liabilities
2,061,238
1,660,867
Long-term operating lease liabilities
1,145,090
1,108,110
Long-term borrowings
45,702
242,944
Deferred tax liabilities
11,666
12,594
Other long-term liabilities
104,107
122,794
Total non-current liabilities
1,306,565
1,486,442
Total liabilities
3,367,803
3,147,309
Redeemable noncontrolling interest
93,576
89,832
Stockholders’ equity
Preferred Stock
—
—
Class A Common Stock
132
133
Class B Common Stock
20
20
Additional paid-in capital
178,148
295,847
Accumulated other comprehensive loss
(100,670
)
(73,388
)
Retained earnings
4,143,654
3,796,730
Skechers U.S.A., Inc. equity
4,221,284
4,019,342
Noncontrolling interests
292,288
290,868
Total stockholders' equity
4,513,572
4,310,210
TOTAL LIABILITIES, REDEEMABLE
NONCONTROLLING INTEREST AND STOCKHOLDERS' EQUITY
$
7,974,951
$
7,547,351
SKECHERS U.S.A., INC. AND
SUBSIDIARIES
Condensed Consolidated
Statements of Earnings
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
(in thousands, except per share data)
2024
2023
2024
2023
Sales
$
2,157,643
$
2,012,516
$
4,409,230
$
4,014,444
Cost of sales
973,206
951,992
2,043,159
1,975,341
Gross profit
1,184,437
1,060,524
2,366,071
2,039,103
Operating expenses
Selling
235,870
187,118
392,371
315,678
General and administrative
742,036
655,673
1,468,371
1,282,115
Total operating expenses
977,906
842,791
1,860,742
1,597,793
Earnings from operations
206,531
217,733
505,329
441,310
Other (expense) income
(1,652
)
2,792
(3,702
)
12,715
Earnings before income taxes
204,879
220,525
501,627
454,025
Income tax expense
40,355
38,942
96,725
82,158
Net earnings
164,524
181,583
404,902
371,867
Less: Net earnings attributable to
noncontrolling interests and redeemable noncontrolling interest
24,222
28,824
57,978
58,665
Net earnings attributable to Skechers
U.S.A., Inc.
$
140,302
$
152,759
$
346,924
$
313,202
Net earnings per share attributable to
Skechers U.S.A., Inc.
Basic
$
0.92
$
0.99
$
2.27
$
2.02
Diluted
$
0.91
$
0.98
$
2.24
$
2.00
Weighted-average shares used in
calculating net earnings per share attributable to Skechers U.S.A.,
Inc.
Basic
152,503
154,970
152,707
155,055
Diluted
154,176
156,571
154,640
156,654
SKECHERS U.S.A., INC. AND
SUBSIDIARIES
Supplemental Financial
Information
(Unaudited)
Segment Information
Three Months Ended June
30,
Change
(in millions)
2024
2023
$
%
Wholesale sales
$
1,132.1
$
1,073.0
59.1
5.5
Gross profit
496.9
431.5
65.4
15.2
Gross margin
43.9
%
40.2
%
370 bps
Direct-to-Consumer sales
$
1,025.5
$
939.5
86.0
9.2
Gross profit
687.5
629.0
58.5
9.3
Gross margin
67.0
%
66.9
%
10 bps
Total sales
$
2,157.6
$
2,012.5
145.1
7.2
Gross profit
1,184.4
1,060.5
123.9
11.7
Gross margin
54.9
%
52.7
%
220 bps
Six Months Ended June
30,
Change
(in millions)
2024
2023
$
%
Wholesale sales
$
2,553.8
$
2,367.6
186.2
7.9
Gross profit
1,133.1
943.5
189.6
20.1
Gross margin
44.4
%
39.9
%
450 bps
Direct-to-Consumer sales
$
1,855.4
$
1,646.8
208.6
12.7
Gross profit
1,233.0
1,095.6
137.4
12.6
Gross margin
66.5
%
66.5
%
(10) bps
Total sales
$
4,409.2
$
4,014.4
394.8
9.8
Gross profit
2,366.1
2,039.1
327.0
16.0
Gross margin
53.7
%
50.8
%
290 bps
Additional Sales Information
Three Months Ended June
30,
Change
(in millions)
2024
2023
$
%
Geographic sales
Domestic
Wholesale
$
446.9
$
390.8
56.1
14.4
Direct-to-Consumer
416.9
411.1
5.8
1.4
Total domestic sales
863.8
801.9
61.9
7.7
International
Wholesale
685.2
682.2
3.0
0.4
Direct-to-Consumer
608.6
528.4
80.2
15.2
Total international sales
1,293.8
1,210.6
83.2
6.9
Total sales
$
2,157.6
$
2,012.5
145.1
7.2
Regional sales
Americas (AMER)
$
1,100.9
$
1,027.0
73.9
7.2
Europe, Middle East & Africa
(EMEA)
492.5
433.3
59.2
13.7
Asia Pacific (APAC)
564.2
552.2
12.0
2.2
Total sales
$
2,157.6
$
2,012.5
145.1
7.2
China sales
$
312.7
$
302.4
10.3
3.4
Distributor sales
$
112.8
$
99.8
13.0
13.0
Six Months Ended June
30,
Change
(in millions)
2024
2023
$
%
Geographic sales
Domestic
Wholesale
$
922.9
$
832.7
90.2
10.8
Direct-to-Consumer
739.7
710.0
29.7
4.2
Total domestic sales
1,662.6
1,542.7
119.9
7.8
International
Wholesale
1,630.9
1,534.9
96.0
6.3
Direct-to-Consumer
1,115.7
936.8
178.9
19.1
Total international sales
2,746.6
2,471.7
274.9
11.1
Total sales
$
4,409.2
$
4,014.4
394.8
9.8
Regional sales
Americas (AMER)
$
2,120.4
$
1,972.9
147.5
7.5
Europe, Middle East & Africa
(EMEA)
1,120.2
967.8
152.4
15.7
Asia Pacific (APAC)
1,168.6
1,073.7
94.9
8.8
Total sales
$
4,409.2
$
4,014.4
394.8
9.8
China sales
$
632.3
$
584.4
47.9
8.2
Distributor sales
$
238.7
$
203.8
34.9
17.2
SKECHERS U.S.A., INC. AND SUBSIDIARIES
Reconciliation of GAAP Earnings Financial Measures to
Corresponding Non-GAAP Financial Measures
(Unaudited)
Constant Currency Adjustment (Non-GAAP Financial
Measure)
We evaluate our results of operations on both an as reported and
a constant currency basis. The constant currency presentation,
which is a non-GAAP measure, excludes the impact of
period-over-period fluctuations in foreign currency exchange rates.
We believe providing constant currency information provides
valuable supplemental information regarding our results of
operations, thereby facilitating period-to-period comparisons of
our business performance and is consistent with how management
evaluates the Company’s performance. We calculate constant currency
percentages by converting our current period local currency
financial results using the prior-period exchange rates and
comparing these adjusted amounts to our prior period reported
results.
Three Months Ended June
30,
2024
2023
Change
(in millions, except per share data)
Reported GAAP Measure
Constant Currency
Adjustment
Adjusted for Non-GAAP
Measures
Reported GAAP Measure
$
%
Sales
$
2,157.6
$
29.3
$
2,186.9
$
2,012.5
174.4
8.7
Cost of sales
973.2
11.3
984.5
952.0
32.5
3.4
Gross profit
1,184.4
18.0
1,202.4
1,060.5
141.9
13.4
Operating expenses
977.9
12.8
990.7
842.8
147.9
17.5
Earnings from operations
206.5
5.2
211.7
217.7
(6.0
)
(2.8
)
Other (expense) income
(1.6
)
6.0
4.4
2.8
1.6
57.1
Income tax expense
40.4
0.7
41.1
38.9
2.2
5.6
Less: Noncontrolling interests and
redeemable noncontrolling interest
24.2
0.7
24.9
28.8
(3.9
)
(13.7
)
Net earnings attributable to Skechers
U.S.A., Inc.
$
140.3
$
9.8
$
150.1
$
152.8
(2.7
)
(1.8
)
Diluted earnings per share
$
0.91
$
0.06
$
0.97
$
0.98
(0.01
)
(1.0
)
Six Months Ended June
30,
2024
2023
Change
(in millions, except per share data)
Reported GAAP Measure
Constant Currency
Adjustment
Adjusted for Non-GAAP
Measures
Reported GAAP Measure
$
%
Sales
$
4,409.2
$
47.6
$
4,456.8
$
4,014.4
442.4
11.0
Cost of sales
2,043.1
18.4
2,061.5
1,975.3
86.2
4.4
Gross profit
2,366.1
29.2
2,395.3
2,039.1
356.2
17.5
Operating expenses
1,860.7
21.5
1,882.2
1,597.8
284.4
17.8
Earnings from operations
505.3
7.8
513.1
441.3
71.8
16.3
Other (expense) income
(3.7
)
10.4
6.7
12.8
(6.1
)
(47.7
)
Income tax expense
96.7
1.4
98.1
82.2
15.9
19.4
Less: Noncontrolling interests and
redeemable noncontrolling interest
58.0
1.7
59.7
58.7
1.0
1.7
Net earnings attributable to Skechers
U.S.A., Inc.
$
346.9
$
15.1
$
362.0
$
313.2
48.8
15.6
Diluted earnings per share
$
2.24
$
0.10
$
2.34
$
2.00
0.34
17.0
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240725009968/en/
Investor Relations Sonia Reback Eunice Han
investors@skechers.com
Press Jennifer Clay jennc@skechers.com
Skechers USA (NYSE:SKX)
Gráfica de Acción Histórica
De Jun 2024 a Jul 2024
Skechers USA (NYSE:SKX)
Gráfica de Acción Histórica
De Jul 2023 a Jul 2024
