Skechers Reports 15.9% Revenue Growth, 26.1% Increase in Net Earnings in Q3 2024

Skechers U.S.A., Inc. reported significant financial growth in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved total sales of $2,347.7 million, marking a 15.9% increase from $2,025.0 million in the same quarter of 2023. For the nine months ended September 30, 2024, sales reached $6,756.9 million, up 11.9% from $6,039.4 million in the prior year. This growth was driven by a 20.6% increase in wholesale sales and a 9.6% rise in direct-to-consumer sales.

Gross profit for the third quarter was $1,223.0 million, a 14.1% increase from $1,071.9 million in Q3 2023. However, the gross margin slightly decreased to 52.1% from 52.9%, attributed to lower average selling prices due to increased promotions. Operating expenses rose to $989.6 million, reflecting a 15.2% increase, primarily due to higher selling and administrative costs.

Net earnings for the third quarter were $209.3 million, a 26.1% increase from $165.9 million in the same period last year. Net earnings attributable to Skechers U.S.A., Inc. were $193.2 million, up 32.9% from $145.4 million in Q3 2023. The effective tax rate for the quarter decreased to 14.7% from 19.5% in the previous year, contributing to the improved net earnings.

For the nine-month period, net earnings totaled $614.2 million, a 14.2% increase from $537.8 million in 2023. The company’s retained earnings rose to $4,336.9 million as of September 30, 2024, compared to $3,796.7 million at the end of 2023.

Skechers also reported total assets of $8.6 billion, up from $7.5 billion at the end of 2023, with current assets increasing to $4.7 billion. Total liabilities rose to $3.7 billion, up from $3.1 billion, while total stockholders' equity increased to $4.8 billion from $4.3 billion.

Strategically, Skechers authorized a new share repurchase program on July 23, 2024, allowing for the purchase of up to $1.0 billion in Class A common stock, with $910.0 million remaining for repurchase as of September 30, 2024. The company also established a new joint venture for North America distribution center expansion, contributing $150.0 million.

Skechers continues to navigate legal challenges, including a patent infringement lawsuit from Nike, with a trial scheduled for September 2025. The company is also addressing a material weakness in internal controls over financial reporting, implementing measures to enhance its disclosure controls and procedures.