Q4 2024 Skechers USA Inc Earnings Call Transcript
Key Points
- Skechers USA Inc (SKX) achieved a record annual sales of over $9 billion on a constant currency basis, marking a 13% increase.
- The company reported a strong gross margin of 53.2% and a double-digit operating margin of 10.1%.
- Skechers USA Inc (SKX) expanded its product offerings into new categories such as soccer, basketball, and cricket, leveraging partnerships with world-class athletes.
- The company opened 77 company-owned stores in the fourth quarter, including its first stores in the Philippines and Prague, indicating a strategic expansion.
- Skechers USA Inc (SKX) maintained a healthy balance sheet with $1.38 billion in cash, cash equivalents, and investments, and repurchased approximately 5.2 million shares during the year.
- The strengthening of the US dollar resulted in unfavorable foreign currency exchange headwinds, significantly impacting reported results.
- Skechers USA Inc (SKX) faced challenges in China, with a reported 11% decline in sales due to a difficult macroeconomic environment.
- The company experienced supply chain disruptions, particularly due to the closure of the Suez Canal, leading to increased in-transit inventory.
- Newly implemented global minimum tax regulations are expected to elevate the company's effective tax rate, impacting net earnings.
- Skechers USA Inc (SKX) anticipates headwinds from incremental US tariffs on goods from China, which could affect production costs and pricing strategies.
Greetings and welcome to the Skechers' fourth-quarter and full-year 2024 earnings conference call.
(Operator Instructions)
As a reminder, this conference is being recorded. It is now my pleasure to turn the call over to Skechers USA Incorporated.
Thank you. You may begin.
' -
Good afternoon, everyone.
Thank you for joining Skechers' fourth-quarter and full-year 2024 earnings conference call. My name is Jason D'Eath, and I lead the cybersecurity engineering team here at Skechers. I've been with the company since 2013, and my favorite style is the SKX FLOAT from our Skechers basketball line.
Joining us on today's call are Skechers' Chief Operating Officer, David Weinberg and Chief Financial Officer, John Vandemore.
Before we begin, I would like to remind everyone of the company's safe harbor statement. Certain statements made on today's call contain forward-looking statements based on current expectations, including without
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