US' Skechers Q2 2025 sales hit $2.44 bn despite margin pressure

The wholesale sales of the company increased 15 per cent YoY to $1.3 billion, while direct-to-consumer (DTC) sales rose 11 per cent to $1.14 billion. Diluted earnings per share (EPS) stood at $1.13, including a $0.3 boost from currency effects, compared to $0.83 on a constant currency basis. Net earnings attributable to Skechers reached $170.5 million, up 21.5 per cent YoY.

The gross profit in Q2 rose 9.9 per cent to $1.3 billion, with a gross margin of 53.3 per cent, down 160 basis points due to higher cost of sales. Operating expenses grew 15.4 per cent to $1.13 billion, leading to a 16.2 per cent drop in earnings from operations to $173.1 million. Operating margin narrowed to 7.1 per cent from 9.6 per cent, Skechers said in a press release.

The international sales outpaced domestic growth, surging 22 per cent in Q2 to $1.58 billion, driven by a 48.5 per cent jump in the Europe, Middle East & Africa region. Asia Pacific region (APAC) saw an increase of 5.5 per cent. China sales, however, fell 8.2 per cent in the quarter to $287.2 million.

Meanwhile, in the first half (H1) of 2025, sales climbed 10 per cent YoY to $4.85 billion, with wholesale revenue rising 11 per cent to $2.83 billion and DTC revenue increasing 8.8 per cent to $2.02 billion.

Domestic sales in H1 grew 3.2 per cent to $1.72 billion. International sales surged 14.2 per cent to $3.14 billion, driven by an 18 per cent increase in wholesale to $1.92 billion and an 8.6 per cent rise in DTC to $1.21 billion.

Regionally, the Americas recorded sales of $2.22 billion in H1, up 4.6 per cent, while Europe, Middle East & Africa delivered robust growth of 29.4 per cent to $1.45 billion. Asia Pacific sales edged up 1.4 per cent to $1.18 billion. China sales declined 12.1 per cent to $555.8 million, the release added.

Fibre2Fashion News Desk (SG)