Skechers Announces Second Quarter 2024 Financial Results and Board Authorized $1 Billion Share Repurchase Program

Rhea-AI Summary

Skechers (NYSE:SKX) reported record second quarter sales of $2.16 billion, a 7.2% increase year-over-year. Direct-to-Consumer sales grew 9.2% and Wholesale sales grew 5.5%. The company achieved diluted earnings per share of $0.91. Skechers saw growth across all regions: 7% in the Americas, 14% in EMEA, and 2% in Asia Pacific. The company's gross margin improved to 54.9%, up 220 basis points. However, operating margin decreased to 9.6% from 10.8% in the previous year. Skechers' Board authorized a new $1 billion share repurchase program. The company raised its full-year outlook for sales and earnings, now expecting fiscal year 2024 sales between $8.875 and $8.975 billion and diluted EPS between $4.08 and $4.18.

Positive

• Record second quarter sales of $2.16 billion, a 7.2% increase
• Direct-to-Consumer sales grew 9.2%
• Wholesale sales grew 5.5%
• Gross margin improved to 54.9%, up 220 basis points
• New $1 billion share repurchase program authorized
• Raised full-year outlook for sales and earnings
• International direct-to-consumer sales increased 15%
• Domestic wholesale sales increased 14%

Negative

• Operating margin decreased to 9.6% from 10.8% in the previous year
• Net earnings decreased 8.2% to $140.3 million
• Diluted earnings per share decreased 7.1% to $0.91
• Operating expenses increased 16.0% and as a percentage of sales increased 340 basis points to 45.3%

Insights

Financial Analyst

Skechers' Q2 2024 results demonstrate solid growth despite challenging macroeconomic conditions. The company achieved record second quarter sales of $2.16 billion, a 7.2% increase year-over-year. This growth was driven by strong performance in both Direct-to-Consumer (9.2% growth) and Wholesale (5.5% growth) segments.

Key financial highlights include:

• Gross margin improved by 220 basis points to 54.9%, primarily due to lower freight costs and favorable sales mix.
• Operating expenses increased by 16.0%, outpacing revenue growth, which led to a 120 basis point decrease in operating margin to 9.6%.
• Diluted EPS decreased to $0.91 from $0.98 in the prior year, a 7.1% decline.

The company's balance sheet remains strong, with cash and investments totaling $1.55 billion, up 11.6% from December 31, 2023. Inventory levels have been well-managed, decreasing slightly by 0.7% to $1.51 billion.

The newly authorized $1 billion share repurchase program signals management's confidence in the company's financial position and future prospects. This, combined with the raised full-year outlook, suggests a positive trajectory for Skechers in the coming quarters.

Market Research Analyst

Skechers' Q2 results reveal interesting market dynamics and growth patterns across different regions and channels. The company's performance underscores its strong brand positioning in the comfort footwear segment.

Key market insights include:

• International sales grew by 6.9%, while domestic sales increased by 7.7%, indicating balanced growth across markets.
• EMEA (Europe, Middle East and Africa) showed particularly strong performance, with Direct-to-Consumer sales surging by 40.6%.
• China faced challenges, with a 'lackluster 6-18' (referring to the mid-year shopping festival), suggesting potential market-specific headwinds.
• The company's strategic focus on comfort technology and innovative designs appears to be resonating well with consumers globally.

Skechers' expansion of its brand ambassador roster, including high-profile athletes like Joel Embiid and Harry Kane, along with collaborations such as John Deere, indicates a strong push to enhance brand visibility and appeal across diverse consumer segments.

The company's entry into new product categories, such as football and basketball footwear, suggests a strategy to diversify its product portfolio and capture new market segments. This approach, combined with targeted marketing efforts, positions Skechers well for continued growth and market share expansion in the competitive footwear industry.

LOS ANGELES--(BUSINESS WIRE)-- Skechers U.S.A., Inc. (“Skechers” or the “Company”) (NYSE:SKX), The Comfort Technology Company^TM and a global footwear leader, today announced financial results for the second quarter ended June 30, 2024.

Second Quarter Highlights

• Record second quarter sales of $2.16 billion, a 7.2% increase, and constant currency sales of $2.19 billion, an 8.7% increase
• Direct-to-Consumer sales grew 9.2%
• Wholesale sales grew 5.5%
• Diluted earnings per share of $0.91
• New $1 billion share repurchase program

“Skechers achieved a new second quarter sales record of $2.16 billion driven by the strong demand for our diverse portfolio of comfortable and innovative footwear,” said David Weinberg, Chief Operating Officer of Skechers. “The growth resulted from sales increases of 9% in Direct-to-Consumer and 6% in Wholesale, as well as increases of 7% internationally and 8% domestically. We continued to achieve growth across all regions including 7% in the Americas; 14% in Europe, the Middle East and Africa; and 2% in Asia Pacific. International direct-to-consumer and domestic wholesale were particularly bright spots, increasing 15% and 14% respectively. These international increases are noteworthy given substantial headwinds from foreign currency, a lackluster 6-18 in China, and supply chain disruptions related to the Suez Canal crisis. That said, we are extremely encouraged by the demand for Skechers product as demonstrated in second half orders, which has led us to raise our full-year outlook for sales and earnings. As we look to the remainder of the year and beyond, we remain focused on enhancing our global infrastructure, managing inventory levels, and driving efficiencies to achieve profitable growth.”

“This quarter marked the 25th anniversary of our initial public offering. As we celebrated this event, we also achieved record second quarter sales and further solidified our position as the third largest athletic footwear company in the world by continuing to deliver comfortable, and innovative footwear worldwide,” began Robert Greenberg, Chief Executive Officer. “I couldn’t be prouder of the accomplishments of the entire Skechers organization and appreciative of our strong partnerships with our customers and growing roster of elite ambassadors, such as the recently signed Philadelphia 76ers basketball star Joel Embiid, as well as collaborations with distinguished brands such as John Deere. Team Skechers now includes numerous athletes competing on global stages, including Golden Boot winner, Euro Cup finalist and Captain of the England football team, Harry Kane; recently announced Skechers ambassador and 2022-2023 NBA most valuable player Joel Embiid, who is playing for the United States; British golfer Matt Fitzpatrick; Canadian golfer Brooke Henderson; Spanish race walker Diego Garcia and newly signed American beach volleyball players Andy Benesh and Miles Partain, who will be playing in Skechers branded uniforms. This diverse team of world class athletes and celebrities, including Martha Stewart and Snoop Dogg, drive awareness and purchase intent for Skechers. Our first commercial featuring Harry Kane aired during the second quarter, and we recently completed several new campaigns featuring him alongside former UK footballer and Skechers ambassador Jamie Redknapp and superstar Snoop Dogg, who will be a broadcast commentator in Paris. Additionally, our football footwear launched globally this month, Skechers x John Deere is launching next month, and basketball footwear will be released globally in August. We are committed to strategically delivering comfort footwear and apparel for all walks of life, supporting our vast offering with targeted marketing, and building our in-store presence globally.”

Second Quarter 2024 Financial Results
		Three Months Ended June 30,								Change
(in millions, except per share data)		2024				2023				$				%
Sales		$	2,157.6			$	2,012.5				145.1				7.2
Gross profit			1,184.4				1,060.5				123.9				11.7
Gross margin			54.9	%			52.7	%						220 bps
Operating expenses			977.9				842.8				135.1				16.0
As a % of sales			45.3	%			41.9	%						340 bps
Earnings from operations			206.5				217.7				(11.2	)			(5.1	)
Operating margin			9.6	%			10.8	%							(120) bps
Net earnings attributable to Skechers U.S.A., Inc.			140.3				152.8				(12.5	)			(8.2	)
Diluted earnings per share		$	0.91			$	0.98				(0.07	)			(7.1	)

Second quarter sales increased 7.2% as a result of a 6.9% increase internationally and a 7.7% increase domestically. Direct-to-Consumer increased 9.2% and Wholesale increased 5.5%. On a constant currency basis, sales increased 8.7%.

Wholesale sales grew $59.1 million, or 5.5%, including increases in AMER of 10.3% and EMEA of 3.9%, partially offset by a decrease in APAC of 2.6%. Wholesale volume increased 6.4% and average selling price declined 0.8%.

Direct-to-Consumer sales grew $86.0 million, or 9.2%, including increases in EMEA of 40.6%, AMER of 4.1%, and APAC of 5.8%. Direct-to-Consumer volume increased 10.2% and average selling price decreased 1.0%.

Gross margin was 54.9%, an increase of 220 basis points, primarily due to lower costs per unit, driven by lower freight and favorable mix of Direct-to-Consumer volumes.

Operating expenses increased $135.1 million, or 16.0%, and as a percentage of sales increased 340 basis points to 45.3%. Selling expenses increased $48.8 million, or 26.1%, and as a percentage of sales increased 160 basis points to 10.9%. The increase was due to higher demand creation expenditures. General and administrative expenses increased $86.4 million, or 13.2%, and as a percentage of sales increased 180 basis points to 34.4%. Increased expenses were primarily driven by increased labor and facility costs, including rent and depreciation.

Earnings from operations decreased $11.2 million, or 5.1%, to $206.5 million.

Net earnings were $140.3 million and diluted earnings per share were $0.91 compared with prior year net earnings of $152.8 million and diluted earnings per share of $0.98.

In the second quarter, the Company’s effective income tax rate was 19.7%.

“In the face of significant operational and foreign exchange headwinds, Skechers delivered meaningful sales growth during the quarter, demonstrating the strength of our brand as the comfort technology leader,” stated John Vandemore, Chief Financial Officer of Skechers. “Demand for our innovative and diverse product portfolio remains robust, leading us to raise both sales and earnings expectations for the full year. We remain committed to and confident of achieving our long-term target of $10 billion in sales by 2026 and, with a new $1 billion share repurchase authorization, continuing to return cash to shareholders in a disciplined manner.”

Six Months 2024 Financial Results
		Six Months Ended June 30,								Change
(in millions, except per share data)		2024				2023				$				%
Sales		$	4,409.2			$	4,014.4				394.8				9.8
Gross profit			2,366.1				2,039.1				327.0				16.0
Gross margin			53.7	%			50.8	%						290 bps
Operating expenses			1,860.7				1,597.8				262.9				16.5
As a % of sales			42.2	%			39.8	%						240 bps
Earnings from operations			505.3				441.3				64.0				14.5
Operating margin			11.5	%			11.0	%						50 bps
Net earnings attributable to Skechers U.S.A., Inc.			346.9				313.2				33.7				10.8
Diluted earnings per share		$	2.24			$	2.00				0.24				12.0

Year-to-date sales increased 9.8%, reflecting an 11.1% increase in international sales and a 7.8% increase domestically. Direct-to-Consumer increased 12.7% and Wholesale increased 7.9%. On a constant currency basis, sales increased 11.0%.

Wholesale sales increased $186.2 million, or 7.9%, due to increases in AMER of 8.0%, EMEA of 8.4%, and APAC of 6.7%. Wholesale volume increased 8.3% and average selling price declined 0.4%.

Direct-to-Consumer sales grew $208.6 million, or 12.7%, due to increases in EMEA of 48.3%, APAC of 10.7%, and AMER of 6.8%. Direct-to-Consumer volume increased 12.5% and average selling price increased 0.2%.

Gross margin was 53.7%, an increase of 290 basis points, due to lower costs per unit, driven by lower freight.

Operating expenses increased $262.9 million or 16.5%. As a percentage of sales, operating expenses increased 240 basis points to 42.2%. Selling expenses increased $76.7 million or 24.3%, primarily due to higher global demand creation expenditures. General and administrative expenses increased $186.3 million or 14.5%, primarily driven by labor and increased facility costs, including rent and depreciation.

Earnings from operations increased $64.0 million to $505.3 million, resulting in an operating margin of 11.5%.

Net earnings were $346.9 million and diluted earnings per share were $2.24, an increase of 12.0% over the prior year.

The Company’s effective income tax rate was 19.3%.

Balance Sheet

Cash, cash equivalents and investments totaled $1.55 billion, an increase of $161.4 million, or 11.6% from December 31, 2023, due to earnings and proceeds from borrowings of $63.9 million, partially offset by capital expenditures of $169.5 million and $120.0 million of share repurchases.

Inventory was $1.51 billion, a decrease of $10.9 million or 0.7% from December 31, 2023.

Share Repurchase

During the second quarter, the Company repurchased 0.9 million shares of its Class A common stock at a cost of $60.0 million.

On July 23, 2024, the Company’s Board of Directors authorized a share repurchase program effective July 25, 2024, pursuant to which the Company may, from time to time, purchase shares of its Class A common stock, for an aggregate repurchase price not to exceed $1.0 billion. The new share repurchase program expires on July 25, 2027, and does not obligate the Company to acquire any particular amount of shares. The new share repurchase program replaces the previous share repurchase program authorized in 2022.

Outlook

For the third quarter of 2024, the Company believes it will achieve sales between $2.30 and $2.35 billion and diluted earnings per share of between $1.10 and $1.15. Further, the Company believes that for the fiscal year 2024, it will achieve sales between $8.875 and $8.975 billion and diluted earnings per share of between $4.08 and $4.18.

Store Count
		Number of Stores
		December 31, 2023				Opened				Closed				June 30, 2024
Domestic stores			563				25				(12	)			576
International stores			1,085				98				(57	)			1,126
Distributor, licensee and franchise stores			3,520				194				(149	)			3,565
Total Skechers stores			5,168				317				(218	)			5,267

Second Quarter 2024 Conference Call

The Company will host a conference call at 4:30 p.m. ET / 1:30 p.m. PT on July 25, 2024 to discuss its second quarter 2024 financial results. The call can be accessed on the Investor Relations section of the Company’s website at investors.skechers.com. For those unable to participate during the live broadcast, a replay will be available beginning July 25, 2024, at 7:30 p.m. ET, through August 8, 2024, at 11:59 p.m. ET. To access the replay, dial 844-512-2921 (U.S.) or 412-317-6671 (International) and use passcode: 13747211.

About Skechers U.S.A., Inc.

Skechers, The Comfort Technology Company^® based in Southern California, designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. The Company’s collections are available in 180 countries and territories through department and specialty stores, and direct to consumers through skechers.com, other digital stores and approximately 5,200 Skechers retail stores. A Fortune 500^® company, Skechers manages its international business through a network of wholly-owned subsidiaries, joint venture partners, and distributors. For more information, please visit about.skechers.com and follow us on Facebook, Instagram and TikTok.

Reference in this press release to “Sales” refers to Skechers’ net sales reported under GAAP. This announcement contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include, without limitation, Skechers’ future domestic and international growth, financial results and operations including expected net sales and earnings, its development of new products, future demand for its products, its planned domestic and international expansion, opening of new stores and additional expenditures, and advertising and marketing initiatives. Forward-looking statements can be identified by the use of forward-looking language such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” “project,” “will,” “could,” “may,” “might,” or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements. Factors that might cause or contribute to such differences include the disruption of business and operations due to` delays or disruptions in our supply chain; international economic, political and market conditions including the effects of inflation and foreign currency exchange rate fluctuations around the world, the challenging consumer retail markets in the United States and the impact of wars, acts of war and other conflicts around the world; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers; decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers, especially in the highly competitive performance footwear market; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in Skechers’ annual report on Form 10-K for the year ended December 31, 2023 and its quarterly reports on Form 10-Q in 2024. Taking these and other risk factors, the dynamic nature of these circumstances means that what is stated in this press release could change at any time, and as a result, actual results could differ materially from those contemplated by such forward-looking statements. The risks included here are not exhaustive. Skechers operates in a very competitive and rapidly changing environment. New risks emerge from time to time and we cannot predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. Moreover, reported results should not be considered an indication of future performance.

SKECHERS U.S.A., INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited)
		As of				As of
(in thousands)		June 30, 2024				December 31, 2023
ASSETS
Current assets
Cash and cash equivalents		$	1,280,430			$	1,189,910
Short-term investments			130,111				72,595
Trade accounts receivable, net			1,027,231				860,300
Other receivables			77,921				82,253
Inventory			1,514,512				1,525,409
Prepaid expenses and other			223,819				222,137
Total current assets			4,254,024				3,952,604
Property, plant and equipment, net			1,587,433				1,506,690
Operating lease right-of-use assets			1,327,795				1,276,171
Deferred tax assets			435,404				450,574
Long-term investments			137,379				123,996
Goodwill			101,230				101,230
Other assets, net			131,686				136,086
Total non-current assets			3,720,927				3,594,747
TOTAL ASSETS		$	7,974,951			$	7,547,351
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable		$	1,176,668			$	1,008,001
Accrued expenses			305,144				320,105
Operating lease liabilities			286,535				274,296
Current installments of long-term borrowings			292,891				46,571
Short-term borrowings			—				11,894
Total current liabilities			2,061,238				1,660,867
Long-term operating lease liabilities			1,145,090				1,108,110
Long-term borrowings			45,702				242,944
Deferred tax liabilities			11,666				12,594
Other long-term liabilities			104,107				122,794
Total non-current liabilities			1,306,565				1,486,442
Total liabilities			3,367,803				3,147,309
Redeemable noncontrolling interest			93,576				89,832
Stockholders’ equity
Preferred Stock			—				—
Class A Common Stock			132				133
Class B Common Stock			20				20
Additional paid-in capital			178,148				295,847
Accumulated other comprehensive loss			(100,670	)			(73,388	)
Retained earnings			4,143,654				3,796,730
Skechers U.S.A., Inc. equity			4,221,284				4,019,342
Noncontrolling interests			292,288				290,868
Total stockholders' equity			4,513,572				4,310,210
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS' EQUITY		$	7,974,951			$	7,547,351

SKECHERS U.S.A., INC. AND SUBSIDIARIES Condensed Consolidated Statements of Earnings (Unaudited)
	Three Months Ended June 30,									Six Months Ended June 30,
(in thousands, except per share data)		2024				2023				2024				2023
Sales		$	2,157,643			$	2,012,516			$	4,409,230			$	4,014,444
Cost of sales			973,206				951,992				2,043,159				1,975,341
Gross profit			1,184,437				1,060,524				2,366,071				2,039,103
Operating expenses
Selling			235,870				187,118				392,371				315,678
General and administrative			742,036				655,673				1,468,371				1,282,115
Total operating expenses			977,906				842,791				1,860,742				1,597,793
Earnings from operations			206,531				217,733				505,329				441,310
Other (expense) income			(1,652	)			2,792				(3,702	)			12,715
Earnings before income taxes			204,879				220,525				501,627				454,025
Income tax expense			40,355				38,942				96,725				82,158
Net earnings			164,524				181,583				404,902				371,867
Less: Net earnings attributable to noncontrolling interests and redeemable noncontrolling interest			24,222				28,824				57,978				58,665
Net earnings attributable to Skechers U.S.A., Inc.		$	140,302			$	152,759			$	346,924			$	313,202
Net earnings per share attributable to Skechers U.S.A., Inc.
Basic		$	0.92			$	0.99			$	2.27			$	2.02
Diluted		$	0.91			$	0.98			$	2.24			$	2.00
Weighted-average shares used in calculating net earnings per share attributable to Skechers U.S.A., Inc.
Basic			152,503				154,970				152,707				155,055
Diluted			154,176				156,571				154,640				156,654

SKECHERS U.S.A., INC. AND SUBSIDIARIES Supplemental Financial Information (Unaudited)
Segment Information
	Three Months Ended June 30,									Change
(in millions)		2024				2023				$				%
Wholesale sales		$	1,132.1			$	1,073.0				59.1				5.5
Gross profit			496.9				431.5				65.4				15.2
Gross margin			43.9	%			40.2	%						370 bps
Direct-to-Consumer sales		$	1,025.5			$	939.5				86.0				9.2
Gross profit			687.5				629.0				58.5				9.3
Gross margin			67.0	%			66.9	%						10 bps
Total sales		$	2,157.6			$	2,012.5				145.1				7.2
Gross profit			1,184.4				1,060.5				123.9				11.7
Gross margin			54.9	%			52.7	%						220 bps

	Six Months Ended June 30,									Change
(in millions)		2024				2023				$				%
Wholesale sales		$	2,553.8			$	2,367.6				186.2				7.9
Gross profit			1,133.1				943.5				189.6				20.1
Gross margin			44.4	%			39.9	%						450 bps
Direct-to-Consumer sales		$	1,855.4			$	1,646.8				208.6				12.7
Gross profit			1,233.0				1,095.6				137.4				12.6
Gross margin			66.5	%			66.5	%						(10) bps
Total sales		$	4,409.2			$	4,014.4				394.8				9.8
Gross profit			2,366.1				2,039.1				327.0				16.0
Gross margin			53.7	%			50.8	%						290 bps

Additional Sales Information
	Three Months Ended June 30,									Change
(in millions)		2024				2023				$				%
Geographic sales
Domestic
Wholesale		$	446.9			$	390.8				56.1				14.4
Direct-to-Consumer			416.9				411.1				5.8				1.4
Total domestic sales			863.8				801.9				61.9				7.7
International
Wholesale			685.2				682.2				3.0				0.4
Direct-to-Consumer			608.6				528.4				80.2				15.2
Total international sales			1,293.8				1,210.6				83.2				6.9
Total sales		$	2,157.6			$	2,012.5				145.1				7.2
Regional sales
Americas (AMER)		$	1,100.9			$	1,027.0				73.9				7.2
Europe, Middle East & Africa (EMEA)			492.5				433.3				59.2				13.7
Asia Pacific (APAC)			564.2				552.2				12.0				2.2
Total sales		$	2,157.6			$	2,012.5				145.1				7.2
China sales		$	312.7			$	302.4				10.3				3.4
Distributor sales		$	112.8			$	99.8				13.0				13.0

	Six Months Ended June 30,									Change
(in millions)		2024				2023				$				%
Geographic sales
Domestic
Wholesale		$	922.9			$	832.7				90.2				10.8
Direct-to-Consumer			739.7				710.0				29.7				4.2
Total domestic sales			1,662.6				1,542.7				119.9				7.8
International
Wholesale			1,630.9				1,534.9				96.0				6.3
Direct-to-Consumer			1,115.7				936.8				178.9				19.1
Total international sales			2,746.6				2,471.7				274.9				11.1
Total sales		$	4,409.2			$	4,014.4				394.8				9.8
Regional sales
Americas (AMER)		$	2,120.4			$	1,972.9				147.5				7.5
Europe, Middle East & Africa (EMEA)			1,120.2				967.8				152.4				15.7
Asia Pacific (APAC)			1,168.6				1,073.7				94.9				8.8
Total sales		$	4,409.2			$	4,014.4				394.8				9.8
China sales		$	632.3			$	584.4				47.9				8.2
Distributor sales		$	238.7			$	203.8				34.9				17.2

SKECHERS U.S.A., INC. AND SUBSIDIARIES
Reconciliation of GAAP Earnings Financial Measures to Corresponding Non-GAAP Financial Measures
(Unaudited)

Constant Currency Adjustment (Non-GAAP Financial Measure)

We evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of period-over-period fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our results of operations, thereby facilitating period-to-period comparisons of our business performance and is consistent with how management evaluates the Company’s performance. We calculate constant currency percentages by converting our current period local currency financial results using the prior-period exchange rates and comparing these adjusted amounts to our prior period reported results.

		Three Months Ended June 30,
		2024												2023				Change
(in millions, except per share data)		Reported GAAP Measure				Constant Currency Adjustment				Adjusted for Non-GAAP Measures				Reported GAAP Measure				$				%
Sales		$	2,157.6			$	29.3			$	2,186.9			$	2,012.5				174.4				8.7
Cost of sales			973.2				11.3				984.5				952.0				32.5				3.4
Gross profit			1,184.4				18.0				1,202.4				1,060.5				141.9				13.4
Operating expenses			977.9				12.8				990.7				842.8				147.9				17.5
Earnings from operations			206.5				5.2				211.7				217.7				(6.0	)			(2.8	)
Other (expense) income			(1.6	)			6.0				4.4				2.8				1.6				57.1
Income tax expense			40.4				0.7				41.1				38.9				2.2				5.6
Less: Noncontrolling interests and redeemable noncontrolling interest			24.2				0.7				24.9				28.8				(3.9	)			(13.7	)
Net earnings attributable to Skechers U.S.A., Inc.		$	140.3			$	9.8			$	150.1			$	152.8				(2.7	)			(1.8	)
Diluted earnings per share		$	0.91			$	0.06			$	0.97			$	0.98				(0.01	)			(1.0	)

		Six Months Ended June 30,
		2024												2023				Change
(in millions, except per share data)		Reported GAAP Measure				Constant Currency Adjustment				Adjusted for Non-GAAP Measures				Reported GAAP Measure				$				%
Sales		$	4,409.2			$	47.6			$	4,456.8			$	4,014.4				442.4				11.0
Cost of sales			2,043.1				18.4				2,061.5				1,975.3				86.2				4.4
Gross profit			2,366.1				29.2				2,395.3				2,039.1				356.2				17.5
Operating expenses			1,860.7				21.5				1,882.2				1,597.8				284.4				17.8
Earnings from operations			505.3				7.8				513.1				441.3				71.8				16.3
Other (expense) income			(3.7	)			10.4				6.7				12.8				(6.1	)			(47.7	)
Income tax expense			96.7				1.4				98.1				82.2				15.9				19.4
Less: Noncontrolling interests and redeemable noncontrolling interest			58.0				1.7				59.7				58.7				1.0				1.7
Net earnings attributable to Skechers U.S.A., Inc.		$	346.9			$	15.1			$	362.0			$	313.2				48.8				15.6
Diluted earnings per share		$	2.24			$	0.10			$	2.34			$	2.00				0.34				17.0

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240725009968/en/

Investor Relations

Sonia Reback

Eunice Han

investors@skechers.com

Press

Jennifer Clay

jennc@skechers.com

Source: Skechers U.S.A., Inc.

FAQ

What was Skechers' (SKX) revenue in Q2 2024?

Skechers reported record second quarter sales of $2.16 billion in Q2 2024, representing a 7.2% increase year-over-year.

How much did Skechers' (SKX) Direct-to-Consumer sales grow in Q2 2024?

Skechers' Direct-to-Consumer sales grew 9.2% in Q2 2024 compared to the same period last year.

What was Skechers' (SKX) earnings per share in Q2 2024?

Skechers reported diluted earnings per share of $0.91 for Q2 2024.

Did Skechers (SKX) announce a new share repurchase program in Q2 2024?

Yes, Skechers' Board authorized a new $1 billion share repurchase program effective July 25, 2024.

What is Skechers' (SKX) sales outlook for fiscal year 2024?

Skechers expects fiscal year 2024 sales to be between $8.875 and $8.975 billion.