Skechers U.S.A. (SKX) Q3 2024 earnings summary

Executive summary

• Achieved record quarterly sales of $2.35 billion in Q3 2024, up 16% year-over-year, with EPS of $1.26, a 35% increase, driven by strong global demand and growth across all channels and regions.

• Wholesale sales rose 21% to $1.42 billion; Direct-to-Consumer sales increased 9.6% to $931.7 million.

• International sales represented 61% of total sales, with EMEA up 30%, Americas up 14%, and APAC up 7.4%.

• Launched new product collaborations, expanded performance lines, and executed high-profile marketing campaigns.

• Repurchased $90 million of shares in Q3; $910 million remains under repurchase authorization.

Financial highlights

• Gross margin was 52.1%, down 80 bps year-over-year due to higher promotions and lower average selling prices.

• Operating margin was 9.9%, down from 10.5% last year; operating income rose 9.5% to $233.4 million.

• Net earnings attributable to Skechers were $193.2 million, up 32.9% from $145.4 million.

• Inventory rose to $1.71 billion, mainly due to higher levels in China and in-transit inventory in EMEA.

• Ended the quarter with $1.6 billion in cash and $2.42 billion in liquidity.

Outlook and guidance

• Full-year 2024 sales expected at $8.925–$8.975 billion; EPS at $4.20–$4.25, up 12% and 21% respectively at midpoint.

• Q4 sales guidance: $2.165–$2.215 billion; EPS: $0.70–$0.75.

• Management remains confident in achieving $10 billion in annual sales by 2026.

• Capital expenditures for 2024 anticipated at $375–$400 million.

• Effective tax rate for the year expected between 18% and 19%.