Skechers Q4 2024 Reports Strong Growth Despite Challenges

Skechers U.S.A. showcased remarkable financial performance in 2024 with a 13% sales increase. Despite challenges in certain regions, their commitment to innovation and strategic marketing is driving long-term growth.

Date: 07-02-2025

AI Rating: 7

Strong Financial Performance
Skechers U.S.A. reported a robust financial performance for 2024, achieving a 13% increase in constant-currency sales totaling over $9 billion. The diluted earnings per share (EPS) of $4.40 also marked a significant 26% rise from the previous year. This increase in EPS may positively affect investor sentiment, indicating strong profitability.

Positive Profitability Metrics
The company reported a gross margin of 53.2% and a double-digit operating margin of 10.1%, which are indicators of healthy profitability and effective cost management. These metrics show that Skechers is not only increasing sales but doing so in a way that maintains substantial profit margins.

Challenges in the Market
Despite these successes, challenges persist, particularly in China, where the company experienced a decline in sales. The management remains cautious with anticipated impacts from unfavorable foreign currency exchange rates and new global minimum tax regulations. This nuance may have a dampening effect on stock prices in the short term as uncertainties loom over international markets.

Future Outlook
Skechers has laid out guidance for 2025, with expectations of sales between $9.7 billion and $9.8 billion. While this reflects continued growth, it includes potential foreign exchange headwinds amounting to approximately 200 basis points, suggesting that achieving this sales guidance might be impacted by external economic conditions.

Stocks: SKX