Skechers Reports 12.1% Sales Increase to $8.97 Billion for Fiscal Year 2024

Skechers U.S.A., Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total sales reaching $8.97 billion, a 12.1% increase from $8.00 billion in 2023. The company's gross profit also rose to $4.77 billion, reflecting a gross margin improvement to 53.2%, up from 51.9% the previous year. Operating income increased by 15.2% to $904.3 million, resulting in an operating margin of 10.1%. Net earnings attributable to Skechers rose to $639.5 million, a 17.2% increase compared to $545.8 million in 2023.

The company experienced growth across both its wholesale and direct-to-consumer segments, with wholesale sales increasing by 13.2% to $5.10 billion and direct-to-consumer sales rising by 10.7% to $3.87 billion. This growth was attributed to higher sales volumes, although it was partially offset by lower average selling prices. Skechers also reported a notable increase in operating expenses, which rose by 14.7% to $3.86 billion, primarily due to higher marketing expenditures and labor costs.

Strategically, Skechers expanded its product offerings, launching new lines such as Skechers Cricket and continuing the rollout of Skechers Football and Basketball. The company opened its first Skechers Performance store in Edmonton, Canada, which features facilities for pickleball and basketball. Additionally, Skechers has been investing in its distribution infrastructure, with planned expansions in North America, China, and Europe. The company also repurchased 5.2 million shares of its Class A common stock during the year.

As of December 31, 2024, Skechers employed approximately 20,100 individuals globally, with a balanced distribution of full-time and part-time employees. The company operates 5,296 Skechers-branded retail stores across 122 countries, including 1,787 company-owned and 3,509 third-party locations. Skechers continues to focus on enhancing its direct-to-consumer capabilities and expanding its geographic footprint, aiming to capture a larger market share in the competitive athletic footwear industry.

Looking ahead, Skechers anticipates continued growth driven by its commitment to product innovation, expanding distribution channels, and enhancing its marketing strategies. The company expects to maintain its focus on delivering high-quality, comfortable footwear while navigating potential challenges such as fluctuating market conditions and supply chain disruptions.