Skechers Q4 2024 Earnings Report
Key Takeaways
Skechers announced record full year sales of $8.97 billion in 2024, with fourth quarter sales reaching $2.21 billion, a 12.8% increase year-over-year. Diluted earnings per share for the quarter were $0.65, a 16.1% increase year-over-year.
Fourth quarter sales increased 12.8% due to an 18.0% increase domestically and a 9.8% increase internationally.
Wholesale sales grew 17.5% and Direct-to-Consumer sales grew 8.4%.
Gross margin was 53.3%, an increase of 20 basis points.
Diluted earnings per share were $0.65, a year-over-year increase of 16.1%.
Skechers
Skechers
Skechers Revenue by Segment
Forward Guidance
For fiscal year 2025, the Company believes it will achieve sales between $9.70 and $9.80 billion and diluted earnings per share between $4.30 and $4.50. For the first quarter of 2025, the Company believes it will achieve sales between $2.40 and $2.43 billion and diluted earnings per share between $1.10 and $1.15.
Positive Outlook
- Sales between $9.70 and $9.80 billion for fiscal year 2025.
- Diluted earnings per share between $4.30 and $4.50 for fiscal year 2025.
- Sales between $2.40 and $2.43 billion for the first quarter of 2025.
- Diluted earnings per share between $1.10 and $1.15 for the first quarter of 2025.
- Capital expenditures will be between $600 and $700 million in 2025, which includes investment in expanding distribution centers in the U.S. and China for future growth.
Challenges Ahead
- The Company believes the income tax rate for fiscal year 2025 will be between 22% and 23%, reflecting the impact of global minimum tax regulations.
- Challenging market and shipping conditions persisted in a few countries.
- Inventory was $1.92 billion, an increase of $394.0 million or 25.8% from December 31, 2023, due to growth in our business, which included elevated merchandise in-transit, partially attributable to the Suez Canal disruption.
- The current year was impacted by unfavorable foreign currency exchange rates.
- Continued headwinds in China.