Skechers Q4 Earnings: Growth Despite Revenue Miss

Skechers U.S.A. reported its fourth quarter 2024 results with EPS of $0.65, falling short of estimates but showing 12.8% revenue growth year-over-year. The stock may face pressure due to revenue shortfalls, but its strong earnings growth offers potential.

Date: 07-02-2025

AI Rating: 6

Earnings Per Share (EPS)
Skechers reported a diluted EPS of $0.65 for Q4 2024, missing analyst expectations of $0.75. However, this reflects a solid year-over-year growth of 16.1%, up from $0.56 in Q4 2023, indicating overall earnings progression despite missing estimates.

Revenue Growth
The company achieved revenues of $2.21 billion, up 12.8% from $1.96 billion in the previous year, although it fell slightly short of the $2.22 billion estimate. This consistent year-over-year growth underscores Skechers' ability to expand, though it did highlight a need for enhanced focus on revenue generation strategies.

Net Income
Skechers reported a net income of $99.3 million, which represents a 13.9% increase from the previous year's net income of $87.2 million. This growth in net income can signal operational efficiency and successful cost management, which can positively influence investor sentiment.

Gross Margin
The company managed to improve its gross margin to 53.3%, up from 53.1% in the previous year. Such improvements, even if minor, suggest effective cost management strategies and could positively impact profitability, thus appealing to investors.

Overall Assessment
Despite the minor shortfalls in revenue and EPS against estimates, Skechers' strong year-over-year growth shows promise. The solid gains in net income and improvement in gross margins reflect the company's operational strengths and adaptability within the market. Investors might be cautious about the shortfall but could be encouraged by the growth metrics.

Stocks: SKX