Skechers U.S.A. (SKX) investor relations material

Executive summary

• Achieved record quarterly sales of $2.44 billion, up 13.1% year-over-year, with strong demand across Wholesale and Direct-to-Consumer segments and all major regions; constant currency sales up 11.5%.

• Diluted EPS was $1.13, including a $0.30 per share benefit from currency; constant currency EPS was $0.83.

• Net earnings attributable to the company rose 21.5% to $170.5 million for the quarter.

• Announced a proposed merger with Beach Acquisition Co Parent, LLC, with shareholders to receive $63.00 per share in cash or $57.00 plus a Parent unit, subject to conditions.

• Wholesale sales grew 15.0% and Direct-to-Consumer sales increased 11.0% year-over-year.

Financial highlights

• Sales increased $282.4 million (13.1%) to $2.44 billion compared to the same quarter last year.

• Gross margin for Q2 was 53.3%, down 160 bps year-over-year; operating margin declined to 7.1% from 9.6%.

• Net earnings attributable to the company were $170.5 million, up 21.5% year-over-year.

• Six-month sales totaled $4.85 billion, up 10.0% year-over-year; six-month diluted EPS was $2.46, up 9.8%.

• Other income was $45.5 million, primarily from favorable FX rates in Europe.

Outlook and guidance

• Management remains confident in achieving $10 billion in annual sales by 2026, citing strong global demand and product innovation.

• For fiscal year 2025, the effective tax rate is expected to be between 20% and 21% due to global minimum tax rules.