Skechers U.S.A. (SKX) 7th Annual Wells Fargo Consumer Conference 2024 summary

Growth strategy and long-term targets

• Aims to reach $10 billion in revenue by 2026, maintaining high single-digit to low teens growth, especially internationally.

• Sees significant runway for global expansion, with international markets offering more opportunity than domestic.

• Focus remains on brand growth over setting new targets prematurely.

Operating margin and profitability

• Targets 11%-13% operating margin, balancing growth investments and profitability.

• Willing to accept short-term SG&A deleverage for long-term brand value and profitability.

• Margin improvement expected from international and DTC channels, and product innovation.

Regional performance and opportunities

• Europe shows robust growth in both DTC and wholesale, driven by product innovation and healthy consumer demand.

• South America and Asia, including China and India, present strong long-term DTC opportunities despite near-term challenges.

• China faces short-term headwinds but remains a major long-term growth market, with a focus on e-commerce and franchise models.

• India is a top growth market, with regulatory hurdles being addressed and a balanced approach to local production and imports.