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%.

• Fourth quarter constant currency sales reached $2.24 billion, with EPS of $0.86.

• Growth was broad-based across wholesale (+17%) and direct-to-consumer (+8%), with domestic sales up 18% and international up 10%.

• Expanded product categories, including soccer, basketball, and cricket, and signed new athlete endorsements.

• Continued global marketing campaigns and opened new stores in key markets, ending 2024 with 5,296 stores globally.

Financial highlights

• Full-year gross margin was 53.2%, with a double-digit operating margin of 10.1%.

• Fourth quarter gross margin was 53.3%, up 20 bps year-over-year; operating margin was 7.5%, up from 6.6%.

• Domestic wholesale sales grew 31% in Q4; international wholesale up 10%.

• Inventory at year-end was $1.92 billion, up 25.8%, mainly due to in-transit inventory for EMEA and Suez Canal disruption.

• Ended the year with $1.38 billion in cash and total liquidity of $2.13 billion.

Outlook and guidance

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

• EPS guidance for 2025 is $4.30–$4.50, with an effective tax rate of 22–23% due to global minimum tax regulations.

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

• Capital expenditures projected at $600–$700 million for 2025, focused on distribution center expansions.