Dive Brief:
- Skechers reported full-year 2024 sales of $8.97 billion, representing a 12% year-over-year increase — a record for the company, according to a press release Thursday. It achieved a similar milestone for the fourth quarter, with sales of $2.21 billion, a 12.8% increase.
- The footwear giant set full-year revenue expectations for 2025, which include sales of between $9.7 billion and $9.8 billion. For the first quarter, it anticipates sales of between $2.4 billion and $2.43 billion.
- Skechers stock fell 12% in premarket trading on Friday, due to what analysts called a “disappointing” 2025 outlook. Though certain factors, including taxes and foreign exchange rates, are out of the company’s control, the stock was priced for a higher outlook, according to Tom Nikic of Needham & Company.
Dive Insight:
Skechers, like many fashion companies, is weighing its sourcing strategies amid tariff uncertainty in President Donald Trump’s second term.
Skechers CFO John Vandemore said on a call with analysts that the company believes it will have the ability to compensate for the tariff changes, but cautioned that the company needs to more fully understand how the tariffs will be rolled out throughout the year.
Part of Skecher’s strategy for dealing with tariffs will be redirecting some of its points of origin and manufacturing relationships, Vandemore said. The company will also negotiate with vendors on foreign exchange rates, he added.
“I think all of those have to be tools available to us if these rates stay in effect, or if the worst case happens and things go forward more severely,” Vandemore said. “So we’re prepared to deal with those… We have a little bit of time because the inventory we have on hand today is cleared, and it won’t be subject to those higher rates. And as we’ve seen, it seems like these policies can change relatively quickly.”
The company’s outlook doesn’t include the potential impact of tariffs, Vandemore said.
In Q4, the company’s sales in China fell about 11%, according to the call. The region remains a challenge for Skechers due to the macro environment and a disappointing Singles Day.
Across other regions, Skechers saw Q4 revenue in the Americas increase by 14%. It grew 25% in the region consisting of Europe, the Middle East and Africa and 3% in the Asia Pacific region.
During the quarter, its wholesale grew 17.5%, and DTC sales grew 8.4%.
CEO Robert Greenberg said in the release that the year’s record sales were driven by a strong response to its comfort technology products and accompanying marketing campaigns.
“Our innovative comfort business closely aligns with the needs of consumers of all ages, genders, activities and professions who are embracing our lifestyle and performance product offering,” Greenberg said. “The global demand for our business is a true testament to our ability to continuously evolve our diverse product portfolio and effectively create excitement for our innovations through powerful marketing campaigns.”
