SKECHERS U.S.A. Achieves Record Sales in Q2

By Philip Seaworth • Sunday, August 10 10:24 • Permanent Link

SKECHERS U.S.A., Inc. has recently released its 10-Q report, providing an insight into the company's financial performance and operations. The company, incorporated in 1992 and headquartered in Manhattan Beach, California, operates in two segments, Wholesale and Direct-to-Consumer. It offers a wide range of footwear, apparel, and accessories under various brand names and distributes its products through a network of distributors, licensees, and retail stores.

In the second quarter of 2025, SKECHERS achieved record sales of $2.44 billion, marking a 13.1% increase compared to the same period in the prior year. The company reported a gross margin of 53.3% and diluted earnings per share of $1.13. The growth was attributed to increased sales in both Wholesale and Direct-to-Consumer segments and across various regions, including Europe, Middle East & Africa, Asia Pacific, and the Americas.

Sales for the quarter increased by $282.4 million, driven by a 22.0% international sales growth. Wholesale sales rose by 15.0%, while Direct-to-Consumer sales increased by 11.0%. However, the gross margin declined by 160 basis points to 53.3% due to higher costs per unit, driven by higher duties domestically as a result of higher tariff rates, partially offset by higher average selling prices.

Operating expenses increased by 15.4% to $1.1 billion, with selling expenses rising by 6.8% and general and administrative expenses increasing by 18.1%. Other income for the quarter was $45.5 million, compared to an expense of $1.7 million in the prior year, primarily due to favorable foreign currency exchange rates in Europe.

The effective tax rate for the quarter decreased to 16.4% from 19.7% in the prior year, primarily due to lower earnings in higher tax jurisdictions. SKECHERS expects its tax rate to be between 20% and 21% for fiscal year 2025 due to the impact of enacted and future legislation concerning the Pillar Two framework.

In terms of segment operations, Wholesale sales increased by 15.0% to $1.3 billion, driven by growth in Europe, Middle East & Africa and Asia Pacific, partially offset by a decrease in the Americas. Direct-to-Consumer sales rose by 11.0% to $1.1 billion, with growth across all regions.

Following these announcements, the company's shares moved -0.1%, and are now trading at a price of $62.96. If you want to know more, read the company's complete 10-Q report here.

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