American company Skechers' 2024 sales rise 12.1% to $8.97 bn

Skechers, an American footwear and apparel company, reported sales of $8.97 billion for the full year 2024, a year-over-year (YoY) increase of 12.1 per cent, for the period ended December 31, 2024. On a constant currency basis, sales reached $9.04 billion, reflecting a 13.0 per cent increase. Both international and domestic sales grew by 12.1 per cent.

Wholesale sales saw a 13.2 per cent increase, adding $595.7 million, with regional growth of 14.5 per cent in AMER (Americas), 16.7 per cent in EMEA (Europe, Middle East, and Africa), and 5.7 per cent in APAC (Asia-Pacific). Direct-to-consumer sales expanded by 10.7 per cent, increasing by $373.4 million, with EMEA showing a 38.3 per cent rise, AMER 6.6 per cent, and APAC 8.0 per cent.

Gross margin improved by 120 basis points to 53.2 per cent, benefiting from lower costs per unit, primarily due to reduced freight expenses. Operating expenses increased by $495.5 million or 14.7 per cent, bringing the total to 43.1 per cent of sales, an increase of 100 basis points, Skechers said in a press release.

Earnings from operations rose by $119.5 million to $904.3 million, resulting in an operating margin of 10.1 per cent. Net earnings attributable to Skechers were $639.5 million, with diluted earnings per share (EPS) of $4.16, reflecting a 19.2 per cent increase over the prior year. On a constant currency basis, diluted earnings per share stood at $4.40, up 26.1 per cent.

“Our 2024 record sales were driven by a strong response to our comfort technology products, and the outstanding execution of our talented and dedicated team in developing, marketing and managing the strategic allocation of our footwear, apparel and accessories worldwide,” said Robert Greenberg, chief executive officer of Skechers.

“Skechers delivered exceptional results in 2024 and exceeded our expectations on a constant currency basis with full year sales of $9.04 billion and earnings per share of $4.40,” stated John Vandemore, chief financial officer of Skechers. “Rooted in our innovative comfort technology products and compelling value proposition, our financial performance illustrates the strength of our global diversification and compelling product offering.”

For the fourth quarter, Skechers reported sales of $2.21 billion, marking a increase of 12.8 per cent YoY. The sales were driven by an 18.0 per cent increase domestically and a 9.8 per cent increase internationally.

Wholesale sales rose by 17.5 per cent, contributing an additional $168.1 million, with notable increases in AMER at 21.9 per cent, EMEA at 21.7 per cent, and APAC at 4.6 per cent. Direct-to-consumer sales grew by 8.4 per cent, adding $83.4 million, with increases in AMER at 7.6 per cent, EMEA at 32.7 per cent, and APAC at 2.5 per cent.

Gross margin for the quarter was 53.3 per cent, reflecting a 20 basis point increase due to a favourable channel mix. Operating expenses rose by $101.7 million, or 11.2 per cent, but decreased as a percentage of sales by 70 basis points to 45.8 per cent. Earnings from operations increased by 27.0 per cent to $165.5 million.

Net earnings attributable to Skechers reached $99.3 million, with diluted earnings per share of $0.65, up 16.1 per cent from the prior year, in the fourth qurater. On a constant currency basis, diluted earnings per share were $0.86, representing a 53.6 per cent increase.

Looking ahead, Skechers projects sales for the fiscal year 2025 to be between $9.70 billion and $9.80 billion, with diluted earnings per share expected to range from $4.30 to $4.50.

For the first quarter of 2025, the company anticipates sales between $2.40 billion and $2.43 billion, with diluted earnings per share forecasted between $1.10 and $1.15. Capital expenditures for the year are estimated between $600 million and $700 million, including investments in expanding distribution centres in the US and China to support future growth.

 “We are confident in our strategic product, marketing and operational plans executed by our dedicated team will result in notable achievements and continued growth in the coming year,” Greenberg added.

Fibre2Fashion News Desk (HU)