Skechers U.S.A. (SKX) 4th Annual Evercore ISI Consumer and Retail Conference summary

Demand environment and growth trends

• Strong consumer demand has driven positive trends in both domestic wholesale and international markets, with notable growth in Europe and Asia, especially China.

• Innovative products focused on value and comfort continue to resonate with consumers, supporting trade-up behavior within the product portfolio.

• International markets, particularly developing regions like China, India, Southeast Asia, South America, and Eastern Europe, present significant growth opportunities due to rising consumer classes and brand appreciation.

• India is highlighted as a key market with regulatory adaptation underway and a focus on building local manufacturing for both domestic consumption and export.

• China remains a high-potential market, with a strong product pipeline and growth in digital and physical retail channels.

Strategic goals and operational focus

• Targeting $10 billion in sales by 2026, with growth driven by international expansion and direct-to-consumer (DTC) channels.

• Operating margin goal is in the low teens, balancing growth investments with efficiency, and leveraging fixed costs for margin accretion.

• DTC and wholesale strategies are tailored by market, with DTC offering robust brand expression and wholesale expanding reach; both channels are supported for growth.

• Planned opening of 155-170 new stores, mainly in high-growth international markets and select U.S. locations, with a focus on profitable, brand-accretive sites.

• Expanding wholesale partnerships, especially in performance categories, to broaden product offerings and market presence.

Financial outlook and margin considerations

• Supply chain disruptions, particularly on Asia-Europe routes, are being monitored for potential impacts on costs and delivery timing.

• No significant like-for-like price increases planned; focus remains on value-driven ASP growth through product and channel mix.

• SG&A investments, especially in advertising and store openings, are intended to support long-term growth, with leverage expected in the second half of the year.