- Skechers (SKX, Financial) reports record sales of $2.41 billion for Q1 2025, a 7.1% increase from last year.
- The company's wholesale sales grew by 7.8%, while direct-to-consumer sales increased by 6.0%.
- Diluted earnings per share were $1.34, with international sales making up 65% of total revenue.
Skechers U.S.A., Inc. (SKX), a leading global footwear company, has announced its financial results for the first quarter of 2025, concluding with an impressive sales record of $2.41 billion. This marks a 7.1% increase compared to the same period last year, emphasizing strong demand across both wholesale and direct-to-consumer segments.
The company reported a higher increase in sales on a constant currency basis, reaching $2.46 billion, a 9.0% year-over-year growth. Wholesale sales rose by 7.8%, and direct-to-consumer sales saw a 6.0% increase, indicating robust growth across different channels.
Regionally, sales in Europe, the Middle East, and Africa (EMEA) surged by 14%, while the Americas region experienced an 8% rise. However, the Asia Pacific region (APAC) saw a slight decline of 3%, primarily due to challenging conditions in China. Excluding China, APAC sales improved by 12%.
Skechers' Chief Operating Officer, David Weinberg, expressed optimism about the company's growth prospects in China. He noted the ongoing investments in product, marketing, and infrastructure to bolster the brand's presence in the critical market.
The first quarter ended with a gross margin of 52.0%, slightly down by 50 basis points, attributed to lower average selling prices. Operating expenses increased by 12.1%, reflecting rising global demand and associated costs.
Earnings from operations totaled $265.1 million, a decrease of 11.3% compared to the prior year, while net earnings attributable to Skechers were $202.4 million. The diluted earnings per share amounted to $1.34, benefiting from favorable foreign currency exchange impacts.
Reflecting on the company's strategy, CEO Robert Greenberg stated that Skechers' focus on comfort, innovation, and affordability remains vital in navigating economic uncertainties. New product developments, like the Hands Free Slip-ins technology, continue to strengthen the brand's diverse offerings.
International store count saw a slight increase, with a net addition of 26 locations, bringing the total to 5,318 stores globally. Despite macroeconomic challenges, Skechers remains committed to expanding its market presence and enhancing brand demand on a global scale.
The company withdrew its previously issued annual 2025 guidance, citing ongoing uncertainties related to global trade policies.
