Skechers U.S.A., Inc. (“Skechers” or the “Company”) (NYSE:SKX),
The Comfort Technology Company™ and a global footwear leader, today
announced financial results for the first quarter ended March 31,
2024.
First Quarter Highlights
- Record sales of $2.25 billion, a 12.5% increase
- Wholesale sales grew 9.8%
- Direct-to-Consumer sales grew 17.3%
- Diluted earnings per share of $1.33, a 30.4%
increase
- Repurchased $60.0 million of Class A common stock
“For the first quarter, Skechers achieved a new sales record of
$2.25 billion, EPS of $1.33, gross margins of 52.5% and an
operating margin of 13.3%, all notable accomplishments as we mark
our 100th earnings call as a public company,” said David Weinberg,
Chief Operating Officer of Skechers. “We saw growth of 17% in our
Direct-to-Consumer segment and 10% in Wholesale, as well as
increases of 15% internationally and 8% domestically. For the
quarter, international sales represented 65% of total sales, and we
achieved growth in all regions: 17% in Europe, the Middle East and
Africa; 16% in Asia Pacific; and 8% in the Americas. Importantly,
our domestic wholesale business returned to growth, increasing 8%
over last year. With the strong global demand for our brand and a
healthy inventory position comprised of proven sellers, innovative
technologies and new product categories, we believe that we have
significant opportunities for growth across the globe, and we
remain confident in our on-going success.”
“We began the new year by setting a new sales record, delivering
results above expectations, and further expanding the Skechers
brand globally,” said Robert Greenberg, Chief Executive Officer of
Skechers. “The broad-based growth is the result of our team’s
dedication to delivering exceptional product for consumers of all
ages and interests and supporting our initiatives with targeted and
effective demand creation. Once again, we created a memorable
commercial for the Super Bowl – this year with Mr. T and Tony Romo.
In the quarter, we also broadcast our first Skechers Basketball
campaigns starring NBA players Julius Randle and Terence Mann,
entered the world of cricket by sponsoring one of the leading men’s
and women’s teams in India, and grew our roster of Premier League
footballers with the addition of Oleksandr Zinchenko. Along with
our signature capsules with Martha Stewart and Snoop Dogg, we
designed high-performance cleats for three more MLB players – Aaron
Nola, Chris Taylor, and Brendan Donovan – and developed an even
more robust offering of Skechers Hands Free Slip-ins footwear,
which has become the number one Skechers comfort technology product
in most markets. With our focus on evolving and innovating our
extensive product offering, best-in-class partnerships with our
distribution network, and exceptional global demand, we are
confident that Skechers will have another record-breaking
year.”
First Quarter 2024 Financial Results
Three Months Ended March
31,
Change
(in millions, except per share data)
2024
2023
$
%
Sales
$
2,251.6
$
2,001.9
249.7
12.5
Gross profit
1,181.6
978.6
203.0
20.7
Gross margin
52.5
%
48.9
%
360 bps
Operating expenses
882.8
755.0
127.8
16.9
As a % of sales
39.2
%
37.7
%
150 bps
Earnings from operations
298.8
223.6
75.2
33.6
Operating margin
13.3
%
11.2
%
210 bps
Net earnings attributable to Skechers
U.S.A., Inc.
206.6
160.4
46.2
28.8
Diluted earnings per share
$
1.33
$
1.02
0.31
30.4
First quarter sales increased 12.5% as a result of a 15.2%
increase internationally and a 7.8% increase domestically.
Wholesale increased 9.8% and Direct-to-Consumer increased 17.3%. On
a constant currency basis, sales increased 13.4%.
Wholesale sales grew $127.1 million, or 9.8%, including
increases in EMEA of 11.5%, APAC of 15.3%, and AMER of 5.9%.
Wholesale volume increased 9.9% and average selling price was
flat.
Direct-to-Consumer sales grew $122.6 million, or 17.3%,
including increases in APAC of 16.5%, AMER of 10.5%, and EMEA of
62.4%. Direct-to-Consumer volume increased 15.5% and average
selling price increased 1.6%.
Gross margin was 52.5%, an increase of 360 basis points,
primarily due to lower costs per unit, driven by lower freight
costs and higher average selling prices.
Operating expenses increased $127.8 million, or 16.9%, and as a
percentage of sales increased 150 basis points to 39.2%. Selling
expenses increased $27.9 million, or 21.7%, and as a percentage of
sales increased 50 basis points to 7.0%. The increase was due to
higher demand creation expenditures. General and administrative
expenses increased $99.9 million, or 15.9%, and as a percentage of
sales increased 100 basis points to 32.3%. Increased expenses were
primarily driven by increased labor and facility costs, including
rent and depreciation.
Earnings from operations increased $75.2 million, or 33.6%, to
$298.8 million, resulting in an operating margin of 13.3%.
Net earnings were $206.6 million and diluted earnings per share
were $1.33 compared with prior year net earnings of $160.4 million
and diluted earnings per share of $1.02.
In the first quarter, the Company’s effective income tax rate
was 19.0%.
“Skechers continues to reach new milestones in expanding our
global footprint. Achieving another sales record and exceptional
earnings is a testament to the strength of our brand and our
ability to meet consumers’ needs,” stated John Vandemore, Chief
Financial Officer. “We remain committed to our growth strategy,
further expanding our global reach and helping shoppers around the
world enjoy the comfort and value of our Skechers products, and we
have continued confidence in our goal of achieving $10 billion in
sales by 2026.”
Balance Sheet
Cash, cash equivalents and investments totaled $1.25 billion, a
decrease of $134.0 million, or 9.7% from December 31, 2023, due to
working capital changes as well as $60.0 million of share
repurchases and capital expenditures of $57.1 million. Decreases
were partially offset by increased earnings.
Inventory was $1.36 billion, a decrease of $164.8 million or
10.8% from December 31, 2023.
Share Repurchase
During the first quarter, the Company repurchased 1.0 million
shares of its Class A common stock at a cost of $60.0 million. As
of March 31, 2024, $205.7 million remained available under the
Company’s share repurchase program.
Outlook
For the second quarter of 2024, the Company believes it will
achieve sales between $2.175 and $2.225 billion and diluted
earnings per share of between $0.85 and $0.90. Further, the Company
believes that for the fiscal year 2024, it will achieve sales
between $8.725 and $8.875 billion and diluted earnings per share of
between $3.95 and $4.10.
Store Count
Number of Stores
December 31, 2023
Opened
Closed
March 31, 2024
Domestic stores
563
10
(8
)
565
International stores
1,085
42
(21
)
1,106
Distributor, licensee and franchise
stores
3,520
95
(83
)
3,532
Total Skechers stores
5,168
147
(112
)
5,203
First Quarter 2024 Conference Call
The Company will host a conference call at 4:30 p.m. ET / 1:30
p.m. PT on April 25, 2024 to discuss its first quarter 2024
financial results. The call can be accessed on the Investor
Relations section of the Company’s website at
investors.skechers.com. For those unable to participate during the
live broadcast, a replay will be available beginning April 25,
2024, at 7:30 p.m. ET, through May 9, 2024, at 11:59 p.m. ET. To
access the replay, dial 844-512-2921 (U.S.) or 412-317-6671
(International) and use passcode: 13745028.
About Skechers U.S.A., Inc.
Skechers, The Comfort Technology Company® based in Southern
California, designs, develops and markets a diverse range of
lifestyle and performance footwear, apparel and accessories for
men, women and children. The Company’s collections are available in
180 countries and territories through department and specialty
stores, and direct to consumers through digital stores and
approximately 5,200 Company- and third-party-owned physical retail
stores. A Fortune 500® company, Skechers manages its international
business through a network of wholly-owned subsidiaries, joint
venture partners, and distributors. For more information, please
visit about.skechers.com and follow us on Facebook, Instagram and
TikTok.
Reference in this press release to “Sales” refers to Skechers’
net sales reported under GAAP. This announcement contains
forward-looking statements that are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995, Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
These forward-looking statements may include, without limitation,
Skechers’ future domestic and international growth, financial
results and operations including expected net sales and earnings,
its development of new products, future demand for its products,
its planned domestic and international expansion, opening of new
stores and additional expenditures, and advertising and marketing
initiatives. Forward-looking statements can be identified by the
use of forward-looking language such as “believe,” “anticipate,”
“expect,” “estimate,” “intend,” “plan,” “project,” “will,” “could,”
“may,” “might,” or any variations of such words with similar
meanings. Any such statements are subject to risks and
uncertainties that could cause actual results to differ materially
from those projected in forward-looking statements. Factors that
might cause or contribute to such differences include the
disruption of business and operations due to` delays or disruptions
in our supply chain; international economic, political and market
conditions including the effects of inflation and foreign currency
exchange rate fluctuations around the world, the challenging
consumer retail markets in the United States and the impact of
wars, acts of war and other conflicts around the world; sustaining,
managing and forecasting costs and proper inventory levels; losing
any significant customers; decreased demand by industry retailers
and cancellation of order commitments due to the lack of popularity
of particular designs and/or categories of products; maintaining
brand image and intense competition among sellers of footwear for
consumers, especially in the highly competitive performance
footwear market; anticipating, identifying, interpreting or
forecasting changes in fashion trends, consumer demand for the
products and the various market factors described above; sales
levels during the spring, back-to-school and holiday selling
seasons; and other factors referenced or incorporated by reference
in Skechers’ annual report on Form 10-K for the year ended December
31, 2023. Taking these and other risk factors, the dynamic nature
of these circumstances means that what is stated in this press
release could change at any time, and as a result, actual results
could differ materially from those contemplated by such
forward-looking statements. The risks included here are not
exhaustive. Skechers operates in a very competitive and rapidly
changing environment. New risks emerge from time to time and we
cannot predict all such risk factors, nor can we assess the impact
of all such risk factors on our business or the extent to which any
factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
statements. Given these risks and uncertainties, you should not
place undue reliance on forward-looking statements as a prediction
of actual results. Moreover, reported results should not be
considered an indication of future performance.
SKECHERS U.S.A., INC. AND
SUBSIDIARIES
Condensed Consolidated Balance
Sheets
(Unaudited)
As of
As of
(in thousands)
March 31, 2024
December 31, 2023
ASSETS
Current assets
Cash and cash equivalents
$
1,020,458
$
1,189,910
Short-term investments
88,564
72,595
Trade accounts receivable, net
1,158,384
860,300
Other receivables
76,632
82,253
Inventory
1,360,630
1,525,409
Prepaid expenses and other
225,726
222,137
Total current assets
3,930,394
3,952,604
Property, plant and equipment, net
1,519,463
1,506,690
Operating lease right-of-use assets
1,298,349
1,276,171
Deferred tax assets
447,085
450,574
Long-term investments
143,503
123,996
Goodwill
101,230
101,230
Other assets, net
127,416
136,086
Total non-current assets
3,637,046
3,594,747
TOTAL ASSETS
$
7,567,440
$
7,547,351
LIABILITIES AND EQUITY
Current liabilities
Accounts payable
$
828,824
$
1,008,001
Accrued expenses
302,213
320,105
Operating lease liabilities
277,733
274,296
Current installments of long-term
borrowings
233,756
46,571
Short-term borrowings
—
11,894
Total current liabilities
1,642,526
1,660,867
Long-term operating lease liabilities
1,122,157
1,108,110
Long-term borrowings
112,536
242,944
Deferred tax liabilities
12,167
12,594
Other long-term liabilities
124,363
122,794
Total non-current liabilities
1,371,223
1,486,442
Total liabilities
3,013,749
3,147,309
Stockholders’ equity
Preferred Stock
—
—
Class A Common Stock
132
133
Class B Common Stock
20
20
Additional paid-in capital
228,594
295,847
Accumulated other comprehensive loss
(86,020
)
(73,388
)
Retained earnings
4,003,352
3,796,730
Skechers U.S.A., Inc. equity
4,146,078
4,019,342
Noncontrolling interests
407,613
380,700
Total stockholders' equity
4,553,691
4,400,042
TOTAL LIABILITIES AND EQUITY
$
7,567,440
$
7,547,351
SKECHERS U.S.A., INC. AND
SUBSIDIARIES
Condensed Consolidated
Statements of Earnings
(Unaudited)
Three Months Ended March
31,
(in thousands, except per share data)
2024
2023
Sales
$
2,251,587
$
2,001,928
Cost of sales
1,069,953
1,023,349
Gross profit
1,181,634
978,579
Operating expenses
Selling
156,501
128,560
General and administrative
726,335
626,442
Total operating expenses
882,836
755,002
Earnings from operations
298,798
223,577
Other (expense) income
(2,050
)
9,923
Earnings before income taxes
296,748
233,500
Income tax expense
56,370
43,216
Net earnings
240,378
190,284
Less: Net earnings attributable to
noncontrolling interests
33,756
29,841
Net earnings attributable to Skechers
U.S.A., Inc.
$
206,622
$
160,443
Net earnings per share attributable to
Skechers U.S.A., Inc.
Basic
$
1.35
$
1.03
Diluted
$
1.33
$
1.02
Weighted-average shares used in
calculating net earnings per share attributable to Skechers U.S.A.,
Inc.
Basic
152,918
155,140
Diluted
155,119
156,755
SKECHERS U.S.A., INC. AND
SUBSIDIARIES
Supplemental Financial
Information
(Unaudited)
Segment Information
Three Months Ended March
31,
Change
(in millions)
2024
2023
$
%
Wholesale sales
$
1,421.7
$
1,294.6
127.1
9.8
Gross profit
636.0
512.0
124.0
24.2
Gross margin
44.7
%
39.6
%
520 bps
Direct-to-Consumer sales
$
829.9
$
707.3
122.6
17.3
Gross profit
545.6
466.6
79.0
16.9
Gross margin
65.7
%
66.0
%
(20) bps
Total sales
$
2,251.6
$
2,001.9
249.7
12.5
Gross profit
1,181.6
978.6
203.0
20.7
Gross margin
52.5
%
48.9
%
360 bps
Additional Sales Information
Three Months Ended March
31,
Change
(in millions)
2024
2023
$
%
Geographic sales
Domestic
Wholesale
$
476.0
$
441.9
34.1
7.7
Direct-to-Consumer
322.8
299.0
23.8
8.0
Total domestic sales
798.8
740.9
57.9
7.8
International
Wholesale
945.7
852.6
93.1
10.9
Direct-to-Consumer
507.1
408.4
98.7
24.1
Total international sales
1,452.8
1,261.0
191.8
15.2
Total sales
$
2,251.6
$
2,001.9
249.7
12.5
Regional sales
Americas (AMER)
$
1,019.5
$
945.9
73.6
7.8
Europe, Middle East & Africa
(EMEA)
627.6
534.5
93.1
17.4
Asia Pacific (APAC)
604.5
521.5
83.0
15.9
Total sales
$
2,251.6
$
2,001.9
249.7
12.5
China sales
$
319.5
$
282.0
37.5
13.3
Distributor sales
$
125.9
$
103.9
22.0
21.2
SKECHERS U.S.A., INC. AND SUBSIDIARIES
Reconciliation of GAAP Earnings Financial Measures to
Corresponding Non-GAAP Financial Measures
(Unaudited)
Constant Currency Adjustment (Non-GAAP Financial
Measure)
We evaluate our results of operations on both an as reported and
a constant currency basis. The constant currency presentation,
which is a non-GAAP measure, excludes the impact of
period-over-period fluctuations in foreign currency exchange rates.
We believe providing constant currency information provides
valuable supplemental information regarding our results of
operations, thereby facilitating period-to-period comparisons of
our business performance and is consistent with how management
evaluates the Company’s performance. We calculate constant currency
percentages by converting our current period local currency
financial results using the prior-period exchange rates and
comparing these adjusted amounts to our prior period reported
results.
Three Months Ended March
31,
2024
2023
Change
(in millions, except per share data)
Reported GAAP Measure
Constant Currency
Adjustment
Adjusted for Non-GAAP
Measures
Reported GAAP Measure
$
%
Sales
$
2,251.6
$
18.2
$
2,269.8
$
2,001.9
267.9
13.4
Cost of sales
1,070.0
6.9
1,076.9
1,023.3
53.6
5.2
Gross profit
1,181.6
11.3
1,192.9
978.6
214.3
21.9
Operating expenses
882.8
8.7
891.5
755.0
136.5
18.1
Earnings from operations
298.8
2.6
301.4
223.6
77.8
34.8
Other income (expense)
(2.0
)
4.3
2.3
9.8
(7.5
)
(76.5
)
Income tax expense
56.4
0.6
57.0
43.2
13.8
31.9
Less: Noncontrolling interests
33.8
1.0
34.8
29.8
5.0
16.6
Net earnings attributable to Skechers
U.S.A., Inc.
$
206.6
$
5.3
$
211.9
$
160.4
51.5
32.1
Diluted earnings per share
$
1.33
$
0.04
$
1.37
$
1.02
0.35
34.3
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240425881470/en/
Investor Relations Sonia Reback Eunice Han
investors@skechers.com
Press Jennifer Clay jennc@skechers.com
Skechers USA (NYSE:SKX)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Skechers USA (NYSE:SKX)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024