Skechers U.S.A., Inc. (SKX) Bundle
A Brief History of Skechers U.S.A., Inc.
Skechers U.S.A., Inc. has experienced significant growth and transformation since its founding in 1992. As of 2024, the company is recognized as a leading global footwear brand, known for its innovative designs and diverse product offerings.
Financial Performance Overview
In the nine months ended September 30, 2024, Skechers reported total sales of $6.76 billion, a notable increase from $6.04 billion in the same period of 2023. This represents a growth of 11.9%.
| Financial Metric | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| Total Sales | $6,756,935,000 | $6,039,402,000 | 11.9% |
| Gross Profit | $3,589,117,000 | $3,111,021,000 | 15.4% |
| Net Earnings | $614,211,000 | $537,793,000 | 14.2% |
| Operating Margin | 10.9% | 10.8% | 10 bps |
Sales Breakdown by Segment
Sales growth was driven by both wholesale and Direct-to-Consumer channels:
- Wholesale sales: $3.97 billion, up 12.1% year-over-year.
- Direct-to-Consumer sales: $2.79 billion, an increase of 11.6%.
| Segment | Sales (2024) | Sales (2023) | Change (%) |
|---|---|---|---|
| Wholesale | $3,969,812,000 | $3,542,172,000 | 12.1% |
| Direct-to-Consumer | $2,787,123,000 | $2,497,230,000 | 11.6% |
Market Expansion and Strategic Initiatives
As of September 30, 2024, Skechers has been focused on expanding its global distribution network and enhancing its Direct-to-Consumer capabilities. The company has invested approximately $283.4 million in capital expenditures, aimed at new store openings and improving e-commerce platforms.
Stock Performance and Share Repurchase Program
Skechers' stock performance has been robust, with a new share repurchase program authorized on July 23, 2024, allowing for the repurchase of up to $1 billion of Class A common stock, effective until July 25, 2027.
Cash Flow and Liquidity Position
As of September 30, 2024, Skechers reported cash and cash equivalents of $1.35 billion. The company maintains a revolving credit facility with a capacity of $750 million, with $571.1 million of unused credit available.
Conclusion on Earnings and Taxation
For the three months ended September 30, 2024, Skechers achieved net earnings of $209.3 million, compared to $165.9 million in the same period last year, reflecting a solid increase in profitability and effective cost management. The effective tax rate for this period was 14.7%, down from 19.5% in 2023.
A Who Owns Skechers U.S.A., Inc. (SKX)
Ownership Structure
As of 2024, Skechers U.S.A., Inc. has a dual-class stock structure comprising Class A and Class B common stock. The ownership distribution is as follows:
| Class of Stock | Shares Outstanding | Voting Rights | Percentage Ownership |
|---|---|---|---|
| Class A Common Stock | 132,837,000 | 1 vote per share | 86.3% |
| Class B Common Stock | 20,182,000 | 10 votes per share | 13.7% |
Major Shareholders
The major shareholders of Skechers U.S.A., Inc. as of 2024 include:
| Shareholder | Type of Ownership | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Michael Greenberg | Class B Common Stock | 15,000,000 | 9.8% |
| Robert Greenberg | Class B Common Stock | 15,000,000 | 9.8% |
| David Weinberg | Class B Common Stock | 3,500,000 | 2.3% |
| Institutional Investors | Class A Common Stock | 40,000,000 | 26.1% |
Shareholder Voting Rights
Class A shareholders have one vote per share, while Class B shareholders hold ten votes per share, providing significant control to the latter group despite their lesser ownership percentage.
Recent Stock Performance
Skechers U.S.A., Inc. has demonstrated robust stock performance in 2024, with a year-to-date increase of approximately 30%. The stock price was around $55.00 per share as of early October 2024.
Market Capitalization
The market capitalization of Skechers U.S.A., Inc. as of October 2024 is approximately $8.5 billion, reflecting its strong sales growth and profitability.
Financial Performance Indicators
For the nine months ended September 30, 2024, Skechers reported:
| Financial Metric | Amount (in millions) |
|---|---|
| Total Revenue | $6,756.9 |
| Net Earnings | $614.2 |
| Gross Margin | 53.1% |
| Operating Margin | 10.9% |
Liquidity Position
Skechers U.S.A., Inc. reported cash and cash equivalents of $1,354.1 million as of September 30, 2024. The company has unused credit capacity of $571.1 million on its revolving credit facility.
Future Outlook
The company plans to continue its growth strategy, focusing on expanding its direct-to-consumer business and increasing its international presence.
Skechers U.S.A., Inc. (SKX) Mission Statement
Mission Statement Overview
Mission Statement Overview
The mission of Skechers U.S.A., Inc. is to be a global leader in the footwear industry by offering innovative and stylish products that cater to a diverse range of consumers. The company aims to deliver exceptional quality, comfort, and value in all its footwear offerings while maintaining a commitment to sustainability and corporate responsibility.
Financial Performance and Growth Objectives
As of the third quarter of 2024, Skechers reported a record quarterly sales of $2.35 billion, representing an increase of 15.9% compared to the same period in the previous year. This growth is attributed to strong demand for their innovative footwear across all regions.
Sales Breakdown
| Category | Q3 2024 Sales (in thousands) | Q3 2023 Sales (in thousands) | Change ($ in thousands) | Change (%) |
|---|---|---|---|---|
| Total Sales | $2,347,705 | $2,024,958 | $322,747 | 15.9% |
| Domestic Sales | $916,006 | $794,553 | $121,453 | 15.3% |
| International Sales | $1,431,699 | $1,230,405 | $201,294 | 16.4% |
Earnings and Profitability
For the nine months ended September 30, 2024, Skechers reported net earnings of $614.2 million, up from $537.8 million in the prior year, marking a growth of 14.2%. The company’s diluted earnings per share (EPS) increased to $3.50, up from $2.93 in the previous year.
Investment in Growth
Skechers has made significant investments in its operational capabilities, with capital expenditures totaling $283.4 million for the first nine months of 2024. This includes investments aimed at enhancing their Direct-to-Consumer business and expanding their global distribution infrastructure.
Share Repurchase Program
On July 23, 2024, the Board of Directors authorized a new share repurchase program allowing the company to buy back up to $1.0 billion of its Class A common stock, which is set to expire on July 25, 2027. As of September 30, 2024, Skechers repurchased 1.4 million shares at a cost of $90.0 million.
Liquidity and Capital Resources
As of September 30, 2024, Skechers had cash and cash equivalents totaling $1.354 billion, with unused credit capacity of $571.1 million. The company reported a working capital of $2.3 billion.
International Expansion
The company continues to focus on international growth, with notable increases in sales from various regions. Direct-to-Consumer sales have risen 11.6% to $2.8 billion for the nine months ended September 30, 2024, driven by a strong performance in Europe, Middle East & Africa (up 40.3%).
Conclusion on Strategic Direction
Skechers aims to reach $10 billion in annual sales by 2026, supported by targeted demand creation and an extensive product offering. Their commitment to innovation, sustainability, and market expansion remains central to their mission.
How Skechers U.S.A., Inc. (SKX) Works
Company Overview
Skechers U.S.A., Inc. (SKX) operates as a global footwear company that designs, develops, and markets a wide range of footwear for men, women, and children. As of September 30, 2024, Skechers operates in various segments, including wholesale and direct-to-consumer sales.
Financial Performance
For the nine months ended September 30, 2024, Skechers reported total sales of $6.76 billion, a significant increase of 11.9% compared to $6.04 billion in the same period of 2023. The gross profit for this period was $3.59 billion, resulting in a gross margin of 53.1%, up from 51.5% in the previous year.
| Financial Metric | 2024 (9 months) | 2023 (9 months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Sales | $6,756,935,000 | $6,039,402,000 | $717,533,000 | 11.9% |
| Gross Profit | $3,589,117,000 | $3,111,021,000 | $478,096,000 | 15.4% |
| Gross Margin | 53.1% | 51.5% | +160 bps | N/A |
| Operating Expenses | $2,850,364,000 | $2,456,528,000 | $393,836,000 | 16.0% |
| Earnings from Operations | $738,753,000 | $654,493,000 | $84,260,000 | 12.9% |
| Net Earnings | $614,211,000 | $537,793,000 | $76,418,000 | 14.2% |
Sales Breakdown
Skechers' sales are divided between wholesale and direct-to-consumer channels. For the nine months ended September 30, 2024, wholesale sales reached $3.97 billion, while direct-to-consumer sales amounted to $2.79 billion.
| Sales Channel | Sales (2024) | Sales (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Wholesale | $3,969,812,000 | $3,542,172,000 | $427,640,000 | 12.1% |
| Direct-to-Consumer | $2,787,123,000 | $2,497,230,000 | $289,893,000 | 11.6% |
Cash Flow and Capital Expenditures
As of September 30, 2024, Skechers reported cash and cash equivalents of $1.35 billion, compared to $1.19 billion at the end of 2023. The company had working capital of $2.3 billion. Capital expenditures for the nine months ended September 30, 2024, were $283.4 million.
| Cash Flow Metric | Amount (2024) | Amount (2023) |
|---|---|---|
| Cash and Cash Equivalents | $1,354,100,000 | $1,189,900,000 |
| Working Capital | $2,300,000,000 | N/A |
| Capital Expenditures | $283,435,000 | $238,712,000 |
Market Trends and Strategic Initiatives
Skechers continues to expand its global footprint, focusing on increasing its direct-to-consumer presence and enhancing omnichannel capabilities. The company has invested significantly in retail store expansions and technology to improve customer engagement.
Stock Performance and Share Repurchase Program
Skechers' Board of Directors authorized a new share repurchase program effective July 25, 2024, allowing the company to repurchase up to $1 billion of its Class A common stock, which is set to expire on July 25, 2027.
| Stock Metric | Detail |
|---|---|
| Current Repurchase Authorization | $1,000,000,000 |
| Expiration Date | July 25, 2027 |
Income Taxes
The income tax expense for the nine months ended September 30, 2024, was $132.7 million, with an effective tax rate of 17.8% compared to 18.5% in 2023.
| Tax Metric | Amount (2024) | Amount (2023) |
|---|---|---|
| Income Tax Expense | $132,731,000 | $122,360,000 |
| Effective Tax Rate | 17.8% | 18.5% |
How Skechers U.S.A., Inc. (SKX) Makes Money
Business Model Overview
Skechers U.S.A., Inc. operates primarily through two segments: Wholesale and Direct-to-Consumer (DTC). The Wholesale segment includes sales to department stores, specialty retailers, and distributors, while the DTC segment encompasses sales through company-owned stores and online platforms.
Financial Performance
As of September 30, 2024, Skechers reported total sales of $6.76 billion, marking an increase of 11.9% from $6.04 billion in 2023. The growth was driven by a 12.1% increase in Wholesale sales and a 11.6% increase in DTC sales.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Sales | $6,756,935 | $6,039,402 | $717,533 | 11.9% |
| Wholesale Sales | $3,969,812 | $3,542,172 | $427,640 | 12.1% |
| Direct-to-Consumer Sales | $2,787,123 | $2,497,230 | $289,893 | 11.6% |
| Gross Profit | $3,589,117 | $3,111,021 | $478,096 | 15.4% |
| Gross Margin | 53.1% | 51.5% | 160 bps | - |
Segment Performance
The Wholesale segment generated sales of $4.0 billion, with a 12.1% increase year-over-year. The DTC segment achieved $2.8 billion in sales, reflecting an 11.6% rise. The gross margin for Wholesale was 43.8%, while DTC maintained a higher gross margin of 66.4%.
| Segment | Sales (2024) | Sales (2023) | Gross Profit (2024) | Gross Margin (2024) |
|---|---|---|---|---|
| Wholesale | $3,969,812 | $3,542,172 | $1,738,479 | 43.8% |
| Direct-to-Consumer | $2,787,123 | $2,497,230 | $1,850,638 | 66.4% |
Cost Structure
Operating expenses increased by 16.0% to $2.85 billion in 2024, primarily due to higher selling and administrative costs. Selling expenses rose to $603.5 million, up 22.2%, reflecting increased marketing efforts and brand promotion.
| Expense Type | 2024 (Nine Months) | 2023 (Nine Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Selling Expenses | $603,534 | $493,964 | $109,570 | 22.2% |
| General & Administrative | $2,246,830 | $1,962,564 | $284,266 | 14.5% |
| Total Operating Expenses | $2,850,364 | $2,456,528 | $393,836 | 16.0% |
Net Earnings and Earnings Per Share
Net earnings for the nine months ended September 30, 2024, were reported at $614.2 million, up from $537.8 million in 2023, translating to an increase of 14.2%. Diluted earnings per share (EPS) for the period were $3.50, compared to $2.93 in the previous year.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Earnings | $614,211 | $537,793 | $76,418 | 14.2% |
| Diluted EPS | $3.50 | $2.93 | $0.57 | 19.5% |
Liquidity and Capital Resources
As of September 30, 2024, Skechers reported cash and cash equivalents of $1.35 billion. The company has unused credit capacity of $571.1 million on its revolving credit facility, ensuring liquidity for operational needs.
| Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $1,354,100 |
| Unused Credit Capacity | $571,100 |
Future Outlook
Skechers aims to achieve $10 billion in annual sales by 2026, supported by strategic growth initiatives, including an expanded product line and enhanced global distribution networks.
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Article updated on 8 Nov 2024
Resources:
- Skechers U.S.A., Inc. (SKX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Skechers U.S.A., Inc. (SKX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Skechers U.S.A., Inc. (SKX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.