SKX Earnings Prediction
The chart below shows how SKX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SKX sees a +0.51% change in stock price 10 days leading up to the earnings, and a +0.37% change 10 days following the report. On the earnings day itself, the stock moves by -0.00%. This data can give you a slight idea of what to expect for the next quarter's release.
SKX Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.21B
12.82%
-5.76%
Gross Margin
53.26%
0.28%
2.23%
Operating Margin
7.48%
12.65%
-24.75%
Net Margin
5.22%
-8.74%
-41.48%
EPS
0.65
16.07%
-48.41%
No Data Available
SKX Earnings Analysis
Skechers USA Inc Corporation (SKX.N) Earnings Conference Call
Positive
Record Sales Growth: SKECHERS achieved record constant currency sales of over $9 billion, marking a 13% increase year-over-year, alongside a 26% rise in diluted earnings per share to $4.4.
Strong Gross and Operating Margins: The company reported a strong gross margin of 53.2% and a double-digit operating margin of 10.1% for the full year, reflecting effective cost management and operational efficiency.
Sales Growth Overview: In the fourth quarter, SKECHERS recorded sales of $2.24 billion, with a 17% increase in wholesale and an 8% increase in direct-to-consumer sales, demonstrating broad-based growth across channels.
Sales Growth Overview: Domestic sales grew by 18% and international sales increased by 10% in the fourth quarter, highlighting the company's strong global presence and demand for its products.
Shareholder Value Enhancement: SKECHERS returned value to shareholders by repurchasing approximately 5.2 million shares during the year, totaling around $330 million, while maintaining a healthy balance sheet.
Negative
Inventory Surge Analysis: Inventory increased by 26% year-over-year, reaching $1,920,000,000, which is significantly higher than the 13% sales growth, indicating potential overstock issues.
Sales Decline and Challenges: China's sales declined by 11% in the fourth quarter, contributing to overall revenue challenges and highlighting ongoing macroeconomic difficulties in the region.
Currency Exchange Loss Impact: Unfavorable foreign currency exchange rates resulted in a $34,700,000 loss during the quarter, which negatively impacted reported earnings and overall financial performance.
Tax Rate Fluctuations: The effective tax rate for the fourth quarter was 11.8%, down from 20.3% in the prior year, but the anticipated increase in global minimum tax regulations is expected to elevate the effective tax rate to between 22-23% for 2025, impacting net earnings.
Sales Growth Forecast: The guidance for 2025 anticipates sales growth of only 7-8% due to foreign currency headwinds, which could reduce organic sales growth by approximately $200,000,000.
SKX FAQs
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SKX Earning Call Sentiment
Earnings call transcript: Skechers Q4 2024 misses EPS forecast, stock dips
SKX.N
2.47%Positive
The earnings call reveals strong financial performance with record sales and EPS growth, indicating effective market strategies and product innovation. Despite elevated inventory levels, management maintains a positive outlook, with stable margins and a robust share repurchase program. The Q&A section highlights broad international growth, excluding China, and a commitment to sustain operating margins. While FX impacts and SG&A pressures are noted, the overall sentiment remains positive due to strong guidance and shareholder returns.
