Skechers Posts Record Sales in 2024, But Misses Forecast
Skechers USA Inc. finished 2024 with record annual sales of $8.97 billion.
The Manhattan Beach, Calif.-based footwear company reported net sales in the fourth quarter of fiscal 2024 of $2.21 billion, a 12.8 percent increase from $1.96 billion the same time last year.
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Net earnings in Q4 were $99.3 million and diluted earnings per share were 65 cents, compared with net earnings of $87.2 million and diluted earnings per share of 56 cents the same time last year.
In the fourth quarter, Skechers noted that its wholesale sales grew 17.5 percent to $168.1 million, while direct-to-consumer sales grew 8.4 percent to $83.4 million in the period.
Despite the strong results, Skechers fell short of its guidance, causing its stock to fall on Thursday after the market closed.
The company previously stated it expected to see sales in Q4 of $2.22 billion and diluted earnings per share between 70 cents and 75 cents.
As for the full year, the company reported net sales of $8.97 billion, a 12.1 percent increase from $8.0 billion in fiscal 2023.
“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,” Robert Greenberg, chief executive officer of Skechers, said in a statement. “We are confident in our strategic product, marketing and operational plans executed by our dedicated team will result in notable achievements and continued growth in the coming year.”
Net earnings in fiscal 2024 were $639.5 million and diluted earnings per share were $4.16, compared with prior-year net earnings of $545.8 million and diluted earnings per share of $3.49.
Skechers yearly earnings were also below expectations, with sales guidance in the range of $8.93 billion and $8.98 billion, and diluted earnings per share expected to be between $4.20 and $4.25.
Skechers chief operating officer David Weinberg added that though challenging market and shipping conditions persisted in a few countries, the strength of its business is attributable to a “differentiated market position, a highly attractive value proposition that combines comfort, innovation, style and quality at an attainable price.”
“We continue to advance our product innovation with comfort technologies across the portfolio, the latest example of which is our Skechers Cricket footwear in India,” Weinberg said. “Additionally, we remain committed to investing in our operations, including the expansion of our distribution centers in North America, China and Europe, as well as delivering an exceptional customer experience in direct-to-consumer such as with the opening of our first experiential performance store in Edmonton.”
Looking ahead to fiscal 2025, the company said it believes it will achieve sales between $9.70 billion and $9.80 billion and diluted earnings per share between $4.30 and $4.50 for the full year. As for the first quarter of 2025, Skechers said it expects to achieve net sales between $2.40 and $2.43 billion and diluted earnings per share between $1.10 and $1.15.
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