On this page of StockholderLetter.com we present the latest annual shareholder letter from SKECHERS USA INC — ticker symbol SKX. Reading current and past SKX letters to shareholders can bring important insights into the investment thesis.

 •  4/8/2025 Letter Continued (Full PDF)
 •  5/1/2023 SKX Stockholder Letter
 •  4/11/2024 SKX Stockholder Letter
 •  More "Miscellaneous" Category Stockholder Letters
 •  SKX Benford's Law Stock Score = 55

SKX Shareholder/Stockholder Letter Transcript:

ANNUAL REPORT 2024

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February 2025
To our Shareholders:
When we founded Skechers over three decades ago, our vision was to create a lifestyle brand focused on
comfort, style, innovation, and quality at a reasonable price. As we celebrate our 25th year as a publicly traded
company and the third-largest footwear brand in the world with thriving Performance and Lifestyle divisions,
we're proud to say that these core principles continue to drive our success and growth.
In 2024, Skechers achieved another year of exceptional performance: four record sales quarters, leading
to annual sales of $9 billion and diluted earnings per share of $4.40 on a constant currency basis. Additionally,
we achieved annual gross margins of 53.2 percent and a double-digit operating margin of 10.1 percent. This
success stems from robust worldwide demand for our diverse product offering, innovative marketing efforts,
strong partnerships, and the dedication of our global team.
Our broad-based distribution allows us to navigate regional fluctuations and capitalize on emerging
opportunities worldwide. For the year, we achieved sales increases of 12 percent in both our Domestic and
International businesses, with the latter representing 62 percent of our total sales, a key focus for longterm growth. Our improvements were broad-based, with sales increases of 11 percent in the Americas, 21
percent in Europe, Middle East and Africa, and 7 percent in
Asia Pacific. Importantly, we accomplished this growth despite
ongoing economic challenges, including inflationary pressures and
ANNUAL
geopolitical uncertainties.
$7.4
Given the breadth of product offering, Direct-to-Consumer
continues to be a key indicator of consumer sentiment and a focus
$9.0
$8.0
$6.3
for Skechers. Our Direct-to-Consumer business achieved growth of
11 percent for the year, underscoring the success of our omnichannel
strategy and our loyal customers    appetite for Skechers. We ended
States.
2024
2023
Skechers-branded stores worldwide, with 4,686 outside the United
2022
are international locations. In total, consumers could shop at 5,296
2021
the year with 1,787 Company-owned Skechers stores, of which 1,177
In Billions
Looking ahead, we plan to open an additional 180 to 200 Company-owned stores in 2025, further
strengthening our retail presence globally. This expansion will include a mix of retail store formats to showcase
the full range of our product line, and, in key markets, offer an immersive brand experience such as our first
interactive store in Canada. This location at one of the largest malls in North America features indoor courts
for basketball and pickleball, providing shoppers with a unique opportunity to test our products.
In our Wholesale business, which grew 13 percent for the year, we expanded our presence through
innovative shop-in-shops and engaging windows, creating immersive Skechers environments for our retail
partners. As sought-after products generated demand, we also developed dedicated spaces for our varied
lifestyle and performance footwear in key retailers.

Brand recognition remains paramount to our success, and our marketing efforts have continued to be
diverse and far-reaching. We engaged customers through traditional and digital media, as well as unconventional
placements such as stadium perimeter boards and airport security areas. Our campaigns featured a talented
roster of celebrities and influencers, ensuring broad appeal across different markets and demographics.
In product development, we again focused on further innovations in our comfort technologies, including
extensions of our popular Skechers Hands Free Slip-ins and Skechers Arch Fit lines both within our lifestyle
and performance portfolios, as well as for kids.
For our vast lifestyle and fashion footwear offering, including Skechers Hands Free Slip-ins and Skechers
Uno, we utilized global celebrities Howie Mandel and Martha Stewart, as well as regional talents Cha Eun-woo
(Southeast Asia), Vanessa Mai (Germany) and Pia Wurtzbach (Philippines) to further solidify our position as
The Comfort Technology Company in the mainstream consciousness.
Our commitment to innovation was evident in the expansion of our Performance Division. Building upon
our successful entry into soccer/football and basketball in 2023, we introduced elite, academy, and youth
styles worldwide in 2024. This strategic expansion allows us to cater to athletes at all levels, from professionals
to aspiring young players. The launch of Skechers Cricket footwear and apparel in India, now available globally,
further demonstrates our ability to adapt to diverse markets and meet local demands while maintaining our
core focus on comfort and performance.
To support our Performance Division endeavors, we expanded our roster of elite athletes across multiple
sports. Along with our notable 2023 signings of European football   s top scorer Harry Kane and NBA All-Star
Julius Randle, Team Skechers now includes European football stars Mohammed Kudus, Baris Alper Yilmaz, Isco
Alarc  n and Anthony Elanga; NBA players Joel Embiid, Norman Powell and Terance Mann; WNBA rising star
Rickea Jackson; MLB players Clayton Kershaw and Aaron Nola; and Indian cricket athletes Ishan Kishan and
Yastika Bhatia. Additionally, both our golf athletes     Matt Fitzpatrick and Brooke Henderson     and pickleball
players     Tyson McGuffin and Catherine Parenteau     continue to hit the green and court in Skechers    signature
Comfort that Performs. These elite athlete partnerships not only enhance our credibility in the performance
footwear market but also help us build product that meets the demanding needs of athletes at all levels and
connect with diverse audiences worldwide.
We continued our successful product collaborations with cultural icons Martha Stewart and Snoop Dogg,
leveraging their broad appeal to showcase the versatility of our brand. We also launched a footwear partnership
with John Deere, expanding our co-branded offering to include Goodyear, demonstrating our ability to create
unique opportunities that resonate with different consumer segments.
Notable developments in global operations and logistics capabilities include the progress made on the
expansion of our distribution centers in the United States, Europe, and China, which will enhance our ability to
efficiently manage inventory and support growth in these key markets. These investments are crucial to meet
the increasing demand for our products and improve our speed to market.
EMEA (EUROPE,
MIDDLE EAST,
AFRICA)
DIRECT-TOCONSUMER
GLOBAL
REVENUE
YEAR-END 2024
INTERNATIONAL
62%
25%
43%
DOMESTIC
38%
GLOBAL
REVENUE
BY CHANNEL
WHOLESALE
57%
YEAR-END 2024
AMER
[AMERICAS]
49%
REVENUE
REGION
BY
YEAR-END 2024
APAC (ASIA
PACIFIC)
26%

2024 was a year of significant accomplishments for Skechers, and we enter 2025 with momentum and
optimism. While we anticipate potential macroeconomic headwinds, we are a resilient global brand with a
diverse product portfolio, established network of retail stores, robust online presence, vast market reach and
stable infrastructure and operations, all of which position us well to navigate these challenges and continue
our growth trajectory. Looking ahead, we believe our strategic product development, innovative marketing,
and operational excellence will drive us toward continued profitable growth.
As always, we want to express our deepest gratitude to our entire supply chain, our loyal retail partners, our
dedicated global team, and importantly, our wonderful consumers around the world. Your continued support
and trust in our brand have been instrumental in making 2024 another record-breaking year for Skechers. As
we move forward, we remain dedicated to delivering the style, comfort, innovation, and quality that you have
come to expect from us, always at a reasonable price.
We look forward to continuing our journey of growth in the years to come.
Sincerely,
Robert Greenberg
CEO & Chairman
of the Board
Michael Greenberg
President
This annual report contains forward-looking statements that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. These forward-looking statements include, without limitation, our future domestic and international growth, financial results and operations including expected
net sales, margins, cash flow and earnings, liquidity and capital resources, inventory levels and orders, our development of new products, future demand for our products, our planned domestic and
international expansion and opening of new stores and our advertising and marketing initiatives. Forward-looking statements include, without limitation, any statement that may predict, forecast,
indicate or simply state future results, performance or achievements of our company, and can be identified by the use of forward-looking language such as    believe,       anticipate,       expect,       estimate,   
   intend,       plan,       project,       will be,       will continue,       will result,       could,       may,       might,    or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties
that could cause our actual results to differ materially from those which are management   s current expectations or forecasts. Such information is subject to the risk that such expectations or forecasts,
or the assumptions underlying such expectations or forecasts, become inaccurate. Please see    Special Note on Forward-Looking Statements    on page one of our 2024 annual report on Form 10-K
for a discussion of some of the risk factors that could cause actual results to materially differ. The risks included there are not exhaustive. We operate in a very competitive and rapidly changing
environment. New risks emerge from time to time and we cannot predict all such risk factors, nor can we assess the impact of all such risk factors on the business or the extent to which any factor, or
combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance
on forward-looking statements as a prediction of actual results. Moreover, reported results should not be considered an indication of our future performance.



 4/8/2025 Letter Continued (Full PDF)