Skechers Achieves Record-Breaking $8.97 Billion in Annual Sales for 2024
Skechers U.S.A., Inc. (NYSE: SKX), a global leader in the footwear industry and renowned for its Comfort Technology, has announced its impressive financial results for the fourth quarter and full fiscal year ending December 31, 2024. The company reported record-breaking annual Sale of $8.97 billion, marking a remarkable 12.1% year-over-year growth, with sales reaching $9.04 billion on a constant currency basis, reflecting a 13.0% increase.
Full-Year 2024 Financial Highlights:
- Total Sales: $8.97 billion, a 12.1% increase compared to 2023. On a constant currency Sale basis, sales were $9.04 billion, reflecting a 13.0% growth.
- Wholesale Sales Growth: 13.2%
- Direct-to-Consumer Sales Growth: 10.7%
- Diluted Earnings Per Share: $4.16, representing a 19.2% year-over-year increase. On a constant currency basis, earnings per share were $4.40, an impressive 26.1% rise.
Fourth Quarter 2024 Highlights:
- Quarterly Sales: $2.21 billion, a 12.8% increase year-over-year.
- Wholesale Sales Growth: 17.5%
- Direct-to-Consumer Sales Growth: 8.4%
- Diluted Earnings Per Share: $0.65, marking a 16.1% increase. On a constant currency basis, earnings per share reached $0.86, a significant 53.6% growth.
- Stock Repurchase: $120 million of Class A common stock.
Leadership Commentary:
David Weinberg, Chief Operating Officer of Skechers, expressed pride in the company’s achievements, stating, “We delivered record full-year sales of $8.97 billion in 2024, Sale reflecting the robust global consumer demand supported by effective marketing campaigns. The year concluded with a strong holiday season, Sale leading to record fourth-quarter sales of $2.21 billion. Our Sale growth spans both Wholesale (17%) and Direct-to-Consumer channels (8%), with domestic sales up 18% and international sales rising 10%.”
Weinberg highlighted regional performance:
- Americas: 14% growth
- EMEA (Europe, Middle East, Africa): 25% growth
- APAC (Asia-Pacific): 3% growth, despite challenges in China
Strong performances were noted in the U.S., Europe, India, and Japan, showcasing the brand’s global resilience despite market and logistical challenges.
Robert Greenberg, CEO of Skechers, added, “Our record sales were fueled by the strong reception of our comfort technology products and the exceptional Sale execution by our global team. The success of our Skechers Hands Free Slip-ins, driven by campaigns featuring Howie Mandel and Martha Stewart, Sale exemplifies our marketing strength. We’ve also expanded our Performance Division, partnering with prominent Sale athletes such as NBA star Joel Embiid and WNBA’s Rickea Jackson, enhancing our brand’s visibility and appeal.”
Fourth Quarter 2024 Financial Performance:
- Sales: $2.21 billion, up 12.8% compared to $1.96 billion in Q4 2023.
- Gross Profit: $1.18 billion, a 13.1% increase.
- Gross Margin: 53.3%, up 20 basis points, driven by a favorable channel mix.
- Operating Expenses: $1.01 billion, up 11.2%, with improved efficiency as expenses decreased to 45.8% of sales.
- Earnings from Operations: $165.5 million, a 27% increase.
- Net Earnings: $99.3 million, compared to $87.2 million in Q4 2023.
- Effective Tax Rate: 11.8%, improved due to a favorable earnings mix in lower tax jurisdictions.
Full-Year 2024 Financial Performance:
- Total Sales: $8.97 billion, up from $8 billion in 2023.
- Gross Profit: $4.77 billion, a 14.8% increase.
- Gross Margin: 53.2%, up 120 basis points, supported by lower freight costs.
- Operating Expenses: $3.86 billion, up 14.7% due to investments in labor and facilities.
- Earnings from Operations: $904.3 million, a 15.2% increase.
- Net Earnings: $639.5 million, compared to $545.8 million in 2023.
- Diluted Earnings Per Share: $4.16, a 19.2% increase; $4.40 on a constant currency basis, up 26.1%.
- Effective Tax Rate: 16.9%, reflecting favorable jurisdictional earnings mix.
Growth Drivers and Strategic Initiatives:
- Wholesale: Growth of 13.2%, with notable increases in the Americas (14.5%), EMEA (16.7%), and APAC (5.7%).
- Direct-to-Consumer: Sales rose 10.7%, driven by EMEA (38.3%), AMER (6.6%), and APAC (8.0%).
- Marketing: Strategic campaigns with high-profile endorsements boosted brand recognition and consumer engagement.
- Product Innovation: Introduction of new comfort technologies, including Skechers Cricket footwear in India.
- Global Expansion: Continued investment in distribution centers across North America, China, and Europe.
