Skechers U.S.A. (SKX) Morgan Stanley Global Consumer & Retail Conference summary

Industry dynamics and consumer trends

• Holiday season off to a strong start, with steady consumer demand and focus on newness and innovation driving sales.

• Tariffs remain a key uncertainty, with contingency plans in place but awaiting formal developments.

• Growth is driven by both domestic and international markets, with a strong emphasis on expanding global reach.

Competitive positioning and product strategy

• Brand has evolved to cover a broad spectrum from workwear to high-performance sports, emphasizing value, style, comfort, and innovation at reasonable prices.

• Recent expansion into sports like football, basketball, and pickleball, with a relaunch of running shoes imminent.

• International perspective is central, with product development tailored for global markets.

Revenue growth drivers and geographic outlook

• Growth strategy centers on international expansion, direct-to-consumer (DTC) growth, and steady domestic wholesale.

• Medium to long-term outlook projects low to mid-teens growth in international and DTC, with mid-single-digit growth in domestic wholesale.

• U.S. market shows recovery and steady demand; Europe outperforms despite headwinds; China stabilizing but slow to recover; India offers significant long-term potential.

• India stands out for its balanced competitive landscape and rapid, profitable growth.