Total sales in 2024 saw a 12.1% rise to $8.9bn from the previous fiscal year's $8bn, underscoring the company's expanding market presence.
The comprehensive financial report indicated that both international and domestic markets experienced parallel growth, each contributing equally to the overall sales increase.
Skechers chief executive officer Robert Greenberg said: “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.”
Fiscal 2024 performance
Wholesale transactions emerged as a critical driver of this growth, escalating by $595.7m or 13.2%, with notable regional spikes across the Americas (AMER) at 14.5%, Europe, Middle East, and Africa (EMEA) at 16.7%, and Asia Pacific at 5.7%.
During the fiscal, direct-to-consumer (DTC) channels also reported significant revenue growth, with an increase of $373.4m or 10.7%. The EMEA region led this surge with a remarkable 38.3% increase, while the Americas and Asia Pacific regions saw increases of 6.6% and 8.0%, respectively.
Operating income increased to $904m from $785m.
Skechers' net earnings attributable to the company reached a commendable $639.5m in FY24, with diluted earnings per share (EPS) climbing to $4.16, a notable 19.2% improvement over the prior year's figures.
Fourth quarter highlights
In terms of quarterly performance, sales saw a boost of 12.8%, propelled by an impressive domestic increase of 18.0% and an international rise of 9.8%.
Operating income was $165.5m from $130.3m a year earlier
Skechers delivered net earnings attributable to the company of $99.3m in Q4 FY24, with diluted EPS at $0.65, marking a substantial year-over-year elevation from the previous net earnings of $87.2m and diluted EPS of $0.56.
FY25 outlook
Chief financial officer John Vandemore said during an earnings call: “As we begin 2025, we face several headwinds and uncertainties, including unfavourable foreign currency exchange rates, the emergence of global minimum tax regulations and the depth and length of the continuing macroeconomic weakness in China. In addition, the recently announced incremental US tariffs on goods from China has impacted our visibility. And while we have not yet fully factored their potential impact and our response into the following guidance, it will likely comprise a combination of actions, including the reallocation of certain production, vendor concessions and pricing.”
Skechers projects sales between $9.70bn and $9.80bn with diluted EPS ranging from $4.30 to $4.50 for the full year 2025 and anticipates first-quarter sales between $2.40bn and $2.43bn with diluted EPS from $1.10 to $1.15.
The anticipated income tax rate for fiscal year 2025 is estimated to be between 22% and 23%, reflecting the impact of global minimum tax regulations on corporate taxation structures.
Capital expenditures for the upcoming year are expected to be between $600m and $700m as Skechers plans to expand its distribution centres in the US and China to support future growth initiatives.
