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1. Company Snapshot

1.a. Company Description

Skechers U.S.A., Inc.designs, develops, markets, and distributes footwear for men, women, and children; and performance footwear for men and women worldwide.The company operates through three segments: Domestic Wholesale, International Wholesale, and Direct-to-Consumer.


It offers casual, casual athletic, sport athletic, trail, sandals, boots, and retro fashion footwear for men and women under the Skechers USA, Skechers Sport, Skechers Active, Modern Comfort, Skechers Street, Mark Nason, and BOBS brands; sneakers, casuals, boots, and sandals for boys and girls under the Skechers Mega-Craft, S-Lights, SKECH-AIR, Foamies, Twinkle Toes, Z-Strap, Skechers Stretch Fit, and Skechers Street brands; and technical footwear under the Skechers GOrun, Skechers GOwalk, Skechers GOtrain, Skechers GOtrail, and Skechers GO Golf brands.The company also provides men's and women's slip-resistant and safety-toe casuals, boots, hikers, and athletic shoes; and lifestyle apparel for men, women, and kids.As of December 31, 2021, it operated 4,306 company and third party owned Skechers stores.


The company sells its products through department and specialty stores, athletic and independent retailers, boutiques, and online retailers; and through its e-commerce sites, concept stores, and factory and warehouse outlet stores.It also licenses its Skechers brand.Skechers U.S.A., Inc.


was incorporated in 1992 and is headquartered in Manhattan Beach, California.

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1.b. Last Insights on SKX

Skechers U.S.A., Inc.'s recent performance was driven by several positive factors. The company's Q2 2025 earnings and revenue exceeded expectations, with sales reaching $2.44 billion, a 13.1% year-over-year increase. This growth was fueled by a favorable impact from foreign currency exchange rates and strong demand for the company's comfort and value-driven products. Additionally, Skechers' expansion into new markets and its focus on innovation, as seen in the introduction of the Skechers AERO series, have contributed to its success. The company's recent partnerships and sponsorships, such as its title sponsorship of the World Champions Cup, have also helped to increase its visibility and appeal. Furthermore, Skechers' athlete Brooke Henderson's recent win in the CPKC Women's Open has further solidified the company's reputation as a leader in the footwear industry.

1.c. Company Highlights

2. Skechers Delivers Record Q1 2025 Sales Amid Global Expansion and Strategic Investments

Skechers U.S.A., Inc. reported record first-quarter 2025 sales of $2.41 billion, or $2.46 billion on a constant currency basis, with earnings per share (EPS) of $1.34, surpassing analyst estimates of $1.18. The company achieved strong global demand for its footwear, driven by its focus on comfort and innovation. International sales accounted for 65% of total revenue, with notable growth in EMEA (14%) and The Americas (8.3%), while APAC experienced a 2.6% decline due to softness in China. Excluding China, APAC grew 12%, highlighting the region's resilience outside of its largest market. Wholesale sales increased 7.8%, with domestic growth of 4.2% and international growth of 9.5%, while direct-to-consumer sales rose 6%, driven by an 11% increase in domestic ecommerce and 2.9% international growth.

Publication Date: Apr -25

📋 Highlights
  • Record Q1 2025 Sales: - Achieved $2.41 billion in sales, or $2.46 billion on a constant currency basis, with EPS of $1.34.
  • Global Demand and Regional Performance: - International sales accounted for 65% of revenue, with 14% growth in EMEA, 8.3% in The Americas, and a 2.6% decline in APAC (excluding China: +12%).
  • Wholesale and DTC Growth: - Wholesale sales rose 7.8% (domestic +4.2%, international +9.5%), while DTC sales grew 6% (domestic ecommerce +11%, international +2.9%).
  • Strategic Investments and Margins: - Gross margin declined 50bps to 52%, operating expenses increased 180bps, with operating income of $265.1M (11% margin) and a 22.3% effective tax rate.
  • Inventory and Cash Position: - Ended with $1.24B in cash and $1.77B in inventory (+30% YoY), with $147.1M in capex focused on distribution and store expansion.

Retail Expansion and Strategic Investments

Skechers expanded its retail footprint, ending the quarter with 5,318 stores globally, including 1,821 company-owned locations. The company opened 51 new company-owned stores and 50 third-party stores, while closing 17 company-owned and 62 third-party stores. Plans to open 150-170 additional company-owned stores in Q2 2025 were announced, reflecting its confidence in global demand. Skechers also signed several high-profile athletes to enhance its technical performance division and expanded its marketing initiatives with diverse talent partnerships. As CEO Robert Greenberg noted, "Our strategic investments in distribution, product innovation, and direct-to-consumer capabilities position us well for long-term growth."

Profitability and Margin Performance

Gross margin declined 50 basis points to 52%, attributed to promotional activity and customer mix. Operating expenses increased 180 basis points as a percentage of sales, driven by higher labor, rent, and distribution costs. Earnings from operations were $265.1 million, with an operating margin of 11%. The effective tax rate rose to 22.3% due to global minimum tax regulations. Despite these pressures, Skechers maintained solid profitability, with operating income of $265.1 million.

Balance Sheet and Capital Allocation

Skechers ended the quarter with $1.24 billion in cash and $1.77 billion in inventory, up 30% year-over-year. Capital expenditures totaled $147.1 million, focusing on distribution infrastructure, store openings, and corporate office expansion. The company remains cautious about the macroeconomic environment but expressed confidence in its ability to navigate uncertainties through strategic investments and operational efficiency. Guidance for Q2 2025 was withheld due to market uncertainty, though Skechers emphasized its proven track record of managing challenges and emerging stronger.

Valuation and Outlook

With a P/E ratio of 11.22 and an EV/EBITDA of 7.54, Skechers appears reasonably valued given its growth trajectory. The company's focus on expanding its international footprint and direct-to-consumer channel, coupled with its strong cash flow generation, supports its long-term growth prospects. However, the current tariff regime and macroeconomic uncertainties remain headwinds, and the company's ability to mitigate these risks will be critical to sustaining momentum. Despite these challenges, Skechers' strategic investments and operational efficiency position it well to navigate the evolving landscape and deliver shareholder value.

3. NewsRoom

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Skechers President Michael Greenberg Is Inducted Into the Footwear News Hall of Fame

Dec -04

Source: businesswire.com

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Introducing the First Skechers x Joel Embiid Signature Basketball Shoe: SKX JE1

Dec -04

Source: businesswire.com

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Investor challenges pile up over price of 3G Capital's Skechers deal

Nov -20

Source: reuters.com

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Skechers Athlete Matt Fitzpatrick Wins Third DP World Tour Championship

Nov -19

Source: businesswire.com

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Isaiah Hartenstein Joins Team Skechers

Nov -12

Source: businesswire.com

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Roméo Lavia Joins Team Skechers

Oct -23

Source: businesswire.com

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Clayton Kershaw Joins the 17th Skechers Pier to Pier Friendship Walk to Celebrate $3.2 Million Raised for Kids

Oct -21

Source: businesswire.com

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Skechers Celebrates 17th Annual Pier to Pier Friendship Walk With $2.5 Million Fundraising Goal

Oct -15

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.94%)

6. Segments

Wholesale

Expected Growth: 7.5%

Strong demand for comfort footwear, successful product launches, and increased distribution channels contributed to the 7.5% growth in wholesale from Skechers U.S.A., Inc. Additionally, effective marketing strategies, expansion into new markets, and a growing e-commerce platform also drove sales.

Direct-to-Consumer

Expected Growth: 8.5%

Skechers U.S.A., Inc.'s Direct-to-Consumer segment growth of 8.5% is driven by strong e-commerce sales, increased brand awareness, and effective marketing strategies. Additionally, the company's focus on digital transformation, omnichannel retailing, and strategic partnerships have contributed to this growth.

7. Detailed Products

Skechers Memory Foam

Skechers Memory Foam shoes feature a unique foam that conforms to the shape of the foot, providing customized support and comfort.

Skechers Relaxed Fit

Skechers Relaxed Fit shoes offer a roomier toe box and softer materials for a more comfortable fit.

Skechers Arch Fit

Skechers Arch Fit shoes feature a contoured arch support and a comfortable, cushioned ride.

Skechers GOwalk

Skechers GOwalk shoes are designed for walking, with a comfortable, breathable design and a soft, cushioned ride.

Skechers Work

Skechers Work shoes are designed for occupational use, with slip-resistant outsoles and protective materials.

Skechers Kids

Skechers Kids shoes are designed for children, with fun colors and styles, and comfortable, supportive designs.

Skechers Performance

Skechers Performance shoes are designed for athletes and fitness enthusiasts, with advanced technology and high-performance materials.

8. Skechers U.S.A., Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Skechers faces moderate threat from substitutes, as customers have alternative options for athletic and casual footwear from other brands.

Bargaining Power Of Customers

Skechers has a large customer base, and individual customers have limited bargaining power, reducing the threat of customer bargaining power.

Bargaining Power Of Suppliers

Skechers has a diversified supplier base, reducing dependence on individual suppliers, and thus minimizing the bargaining power of suppliers.

Threat Of New Entrants

The athletic and casual footwear market has high barriers to entry, including significant capital requirements and established brand recognition, making it difficult for new entrants to compete with Skechers.

Intensity Of Rivalry

The athletic and casual footwear market is highly competitive, with established brands like Nike, Adidas, and Vans, resulting in intense rivalry and competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 17.87%
Debt Cost 3.95%
Equity Weight 82.13%
Equity Cost 10.40%
WACC 9.25%
Leverage 21.76%

11. Quality Control: Skechers U.S.A., Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Dillard's

A-Score: 6.9/10

Value: 5.1

Growth: 6.9

Quality: 7.1

Yield: 8.0

Momentum: 9.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Weyco

A-Score: 6.5/10

Value: 7.4

Growth: 5.9

Quality: 7.1

Yield: 9.0

Momentum: 3.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
H&R Block

A-Score: 5.8/10

Value: 5.6

Growth: 6.1

Quality: 5.5

Yield: 7.0

Momentum: 1.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Skechers

A-Score: 4.8/10

Value: 4.6

Growth: 7.3

Quality: 6.1

Yield: 0.0

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Steven Madden

A-Score: 4.3/10

Value: 3.9

Growth: 5.2

Quality: 5.4

Yield: 5.0

Momentum: 1.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Crocs

A-Score: 3.9/10

Value: 4.3

Growth: 9.1

Quality: 6.2

Yield: 0.0

Momentum: 1.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

63.13$

Current Price

63.13$

Potential

-0.00%

Expected Cash-Flows