Skechers U.S.A. (SKX) Q4 2024 earnings summary

Executive summary

• Achieved record constant currency sales of $9.04 billion for 2024, up 13% year-over-year, with EPS of $4.40, up 26% year-over-year, and a gross margin of 53.2%.

• Fourth quarter sales reached $2.21 billion, with EPS of $0.86 on a constant currency basis, reflecting broad-based growth across geographies and channels.

• Growth driven by robust global demand, effective marketing, product innovation, and expansion into new sports categories with high-profile athlete signings.

• Opened 681 new stores and closed 553, ending 2024 with 5,296 stores globally, including 1,787 company-owned locations.

• Returned value to shareholders by repurchasing 5.2 million shares during the year.

Financial highlights

• Full-year constant currency sales: $9.04 billion (+13%); reported sales: $8.97 billion (+12.1%).

• Full-year EPS: $4.40 (+26% constant currency), $4.16 (+19% reported); Q4 EPS: $0.86 (+54% constant currency), $0.65 (+16% reported).

• Gross margin for 2024: 53.2% (+120 bps); Q4 gross margin: 53.3% (+20 bps YoY); operating margin for 2024: 10.1%.

• Inventory at year-end: $1.92 billion (+25.8% YoY), mainly due to in-transit inventory and Suez Canal disruption.

• Cash, cash equivalents, and investments: $1.38 billion; total liquidity: $2.13 billion.

Outlook and guidance

• 2025 sales expected at $9.7–$9.8 billion, with a $200 million FX headwind.

• 2025 EPS guidance: $4.30–$4.50, reflecting FX and global minimum tax impacts; effective tax rate expected to rise to 22–23%.

• Q1 2025 sales expected at $2.4–$2.43 billion; EPS at $1.10–$1.15.

• Capital expenditures for 2025 projected at $600–$700 million, focused on distribution center expansions in the U.S., Europe, and China.