For the quarter ended December 2023, Skechers (SKX) reported revenue of $1.96 billion, up 4.4% over the same period last year. EPS came in at $0.56, compared to $0.48 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $2.02 billion, representing a surprise of -2.77%. The company delivered an EPS surprise of +7.69%, with the consensus EPS estimate being $0.52.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expe ...

Financial Data and Key Metrics Changes - The company achieved a record annual sales of $8 billion, an increase of $556 million compared to the previous year, with fourth-quarter sales reaching $1.96 billion, up 4.4% year-over-year [5][15] - Gross margin for the year was a record 51.9%, with fourth-quarter gross margins at 53.1%, an increase of 470 basis points from the prior year [5][18] - Earnings per share for the year were $3.49, marking a significant achievement for the brand [14] Business Line Data and Key Metrics Changes - Direct-to-consumer sales grew 20% year-over-year, exceeding 50% of total sales for the first time, driven by a 27% increase internationally and a 12% increase domestically [9][15] - Wholesale sales decreased 8.3% year-over-year to $962.6 million, with domestic wholesale down 10% and international wholesale down 7.1% [16][10] - The company opened 67 company-owned stores in the quarter, bringing the total to 1,648 locations, and plans to open 140 to 160 stores worldwide in 2024 [12][21] Market Data and Key Metrics Changes - International sales increased 7%, representing approximately 64% of total sales in the fourth quarter, with notable growth in Asia Pacific, where sales rose 15% year-over-year [9][17] - In China, sales grew 22%, driven by strong performance during key holiday periods, while EMEA sales decreased 7.3% year-over-year [17][10] Company Strategy and Development Direction - The company is focused on expanding its product categories, including the introduction of football and basketball lines, and enhancing its direct-to-consumer and wholesale businesses [6][8] - Strategic partnerships with athletes and celebrities are being leveraged to enhance brand visibility and consumer engagement [7][8] - The company aims to maintain a strong inventory position while managing supply chain challenges and investing in logistics capabilities [13][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic challenges, including inflation and rising interest rates, but expressed optimism about returning to growth in the wholesale segment in 2024 [14][22] - The company expects sales for 2024 to range between $8.6 billion and $8.8 billion, with net earnings per share projected between $3.65 and $3.85 [22][23] - Management remains confident in the strength of the brand and ongoing consumer demand for its products [25] Other Important Information - The company reported a 16% year-over-year reduction in inventory levels, indicating improved inventory management [13][20] - Capital expenditures for the quarter were $85 million, with plans to invest between $350 million and $400 million in 2024 to support strategic priorities [21][23] Q&A Session Summary Question: U.S. wholesale business performance - Management clarified that domestic wholesale was down 10%, not 14%, and noted a cautious optimism for growth in 2024 based on improved order trends [28][29] Question: Performance in China - Management expressed satisfaction with the 22% growth in China and indicated early January performance was encouraging, suggesting a recovery trend [30][31] Question: Guidance for EBIT margins - Management indicated expectations for favorable gross margins in Q1, with a continued focus on achieving double-digit operating margins [37][38] Question: Store openings and productivity - Management emphasized the importance of opening the right type of stores globally and indicated plans for continued expansion beyond the current store count [42][44] Question: Impact of inventory congestion - Management described inventory congestion as temporary and specific to certain customers, with expectations for recovery in 2024 [46][48] Question: Consumer trends and gross margins - Management noted that consumers continue to trade up within the product portfolio, which may not significantly impact gross margins year-over-year [50][51] Question: Shipping and freight costs - Management reported that current shipping conditions are manageable, with early inventory purchases mitigating potential delays [53][54] Question: Growth opportunities in new categories - Management highlighted significant growth opportunities in football and basketball, with a cautious approach to market entry [57][58] Question: Direct-to-consumer growth outlook - Management expects continued growth in the direct-to-consumer segment, albeit at a slower pace than the previous year [60][62]

Skechers (SKX) came out with quarterly earnings of $0.56 per share, beating the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.48 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.69%. A quarter ago, it was expected that this shoe company would post earnings of $0.78 per share when it actually produced earnings of $0.93, delivering a surprise of 19.23%.Over the last four quarters, the company has ...

Shares of Skechers USA Inc. fell 10.8% in extended trading Thursday after the comfort-footwear maker reported weaker-than-expected fourth-quarter sales amid a decline in its wholesale business. The company reported revenue of $1.96 billion, an increase of 4.4% on the prior year’s quarter. Net income was $87.2 million, or 56 cents a share, compared with $75.5 million, or 48 cents a share, in the prior year’s quarter. On an adjusted basis, Skechers SKX, +1.86% earned 48 cents a share. Analysts surveyed by ...

Core Insights - Skechers reported record annual sales of $8.00 billion for 2023, reflecting a year-over-year increase of 7.5% [2][8] - Direct-to-Consumer sales grew significantly by 24.3%, while Wholesale sales decreased by 2.8% [10][11] - The company achieved diluted earnings per share of $3.49, a substantial increase of 46.6% compared to the previous year [2][11] Full Year 2023 Financial Results - Total sales reached $8,000.3 million, up from $7,444.5 million in 2022, marking a $555.8 million increase [8][11] - Gross profit for the year was $4,152.4 million, an increase of $637.0 million or 18.1% from the prior year [8][11] - Gross margin improved to 51.9%, up 470 basis points from 2022 [8][11] - Operating expenses increased by $398.9 million or 13.4%, resulting in an operating margin of 9.8% [11][12] - Net earnings attributable to Skechers U.S.A., Inc. were $545.8 million, a 46.3% increase from $373.0 million in 2022 [11][12] Fourth Quarter 2023 Highlights - Fourth quarter sales reached $1.96 billion, a 4.4% increase year-over-year [3][4] - Direct-to-Consumer sales in Q4 grew by 20.3%, while Wholesale sales decreased by 8.3% [5][6] - Gross margin for the fourth quarter was 53.1%, an increase of 470 basis points compared to the same quarter in 2022 [4][5] - The company repurchased $60 million of Class A common stock during the fourth quarter [3][13] Regional Performance - In Q4, Asia Pacific sales grew by 15%, driven by double-digit growth in China, while the Americas grew by 3% and EMEA decreased by 7% [3][5] - For the full year, international sales increased by 13.3%, while domestic sales saw a slight decline of 0.8% [10][11] Outlook for 2024 - The company anticipates sales between $8.60 billion and $8.80 billion for fiscal year 2024, with diluted earnings per share projected between $3.65 and $3.85 [14] - Capital expenditures for 2024 are expected to be between $350 million and $400 million, including the construction of a new distribution center in China [14]

Skechers U.S.A., Inc. (SKX) is likely to register top-line growth when it reports fourth-quarter 2023 earnings on Feb 2, after market close. The Zacks Consensus Estimate for quarterly revenues is pegged at $2,013 million, indicating a rise of 7.2% from the prior-year quarter’s reported figure.The consensus estimate for fourth-quarter earnings per share is pegged at 52 cents, suggesting an increase of 8.3% from the year-ago period’s actual. This estimate has been increased by a couple of cents over the past ...

Wall Street analysts forecast that Skechers (SKX) will report quarterly earnings of $0.52 per share in its upcoming release, pointing to a year-over-year increase of 8.3%. It is anticipated that revenues will amount to $2.01 billion, exhibiting an increase of 7.2% compared to the year-ago quarter.The consensus EPS estimate for the quarter has undergone a downward revision of 1.9% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed the ...

Skechers U.S.A., Inc.’s (SKX) entrance into sports categories and strategic alliances underscore its commitment to innovation and adaptability in the market. These efforts reflect a pro-active strategy to capture market segments and respond to changing consumer tastes.Management’s strategic vision is clear in its efforts to leverage the increasing demand for comfort technology products, establishing Skechers as the preferred brand for consumers seeking style and functionality. Additionally, SKX's investment ...

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.It also includes access to the Zacks Style Scores.What are the Zacks Style Scores?Developed alongside t ...

LOS ANGELES--(BUSINESS WIRE)--Pet lovers, give a round of paws for the two talented winners of Skechers’ Paws for a Cause Design Scholarship! The brand is awarding Southern California juniors Teeny Nadeau of Cal State Fullerton and Maki Shigetani of USC with tuition funds and corporate mentorships, and will produce their creative animal prints on a key BOBS from Skechers® style as part of a limited-edition collection in June 2024. Both winners’ patterns were inspired by personal experiences with their ad ...