UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
SKECHERS U.S.A., INC.
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction |
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(I.R.S. Employer |
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of incorporation) |
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Identification No.) |
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(Address of principal executive offices) |
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(Zip Code) |
Registrant’s telephone number, including area code: (
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On July 26, 2022, Skechers U.S.A., Inc. issued a press release announcing its results of operations and financial condition for the quarter ended June 30, 2022. A copy of the press release is attached hereto as exhibit 99.1 and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
The following exhibit is furnished as part of this report:
99.1 Press Release dated July 26, 2022.
104 Cover Page Interactive Data File (embedded within the inline XBRL document).
The information in this current report and the exhibit attached hereto is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The Information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended. The furnishing of the Information in this Current Report is not intended to, and does not, constitute a representation that such furnishing is required by Regulation FD or that the Information this Current Report contains is material investor information that is not otherwise publicly available.
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Exhibit No. |
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Description |
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104 |
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Cover Page Interactive Data File (embedded within the inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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SKECHERS U.S.A., INC. |
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July 26, 2022 |
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By: |
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/s/ John Vandemore |
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Name: John Vandemore |
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Title: Chief Financial Officer |
Exhibit 99.1
SKECHERS ANNOUNCES RECORD SECOND QUARTER 2022 SALES
LOS ANGELES, CA – July 26, 2022 – SKECHERS U.S.A., Inc. (“Skechers” or the “Company”) (NYSE:SKX), The Comfort Technology CompanyTM and a global footwear leader, today announced financial results for the second quarter ended June 30, 2022.
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Wholesale sales grew 18.3% |
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Direct-to-Consumer sales grew 4.3% |
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Repurchased $24.2 million of common stock |
“Skechers achieved a new quarterly sales record of $1.87 billion, a significant accomplishment especially given the macroeconomic headwinds, supply chain issues and COVID-related restrictions in China during the period,” said David Weinberg, Chief Operating Officer of Skechers. “The growth was the result of increases in sales of 15% in our domestic and 10% in our international businesses. Growth was driven by sales increases of 21% in the Americas and 8% in EMEA. In APAC, where sales were flat due to COVID-related restrictions in China, we saw strong growth in most other markets, particularly in India, South Korea and Malaysia. During the quarter, we focused on delivering our in-demand footwear direct to consumers and through our wholesale partners globally. While we remain cautious given the challenges across the globe, we believe our comfort technology footwear, impactful marketing and the strength of our brand will drive continued sales growth in the back half of the year.”
“2022 is shaping up to be another remarkable year for Skechers with two consecutive record sales quarters, the result of our talented team’s passion, determination and execution to evolve our product offering, inform the world of our exceptional comfort technologies, and effectively navigate the supply chain constraints,” began Robert Greenberg, Chief Executive Officer of Skechers. “In the second quarter, we delivered hands-free comfort footwear to a world now desiring more ease in their lives, expanded our Skechers Arch Fit offering, and designed more fashion-focused styles as comfort at work and play is the new norm. Further, we elevated our performance game with the launch of Skechers Viper Court, a collection designed specifically for the fastest growing sport in America, pickleball, and saw major championship wins on the golf course with Brooke Henderson at this past weekend’s Amundi Evian Championship in France and Matt Fitzpatrick at the U.S. Open at Brookline last month. We also signed several new ambassadors—specific to Europe and Asia, as well as a rising Latin music artist and a global pop sensation, all to further strengthen brand awareness in key markets. This, our 30th year in business, is our strongest year yet from a sales, marketing and product perspective. We are in a unique position as a brand that delivers on comfort technology, style, innovation and quality with a global reach that includes 4,355 Skechers stores. As a company, we are determined to outdo ourselves and reach further heights as we strive to meet our customers’ needs.”
Second Quarter 2022 Financial Results
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Three Months Ended June 30, |
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Change |
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2022 |
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2021 |
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$ |
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% |
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Sales |
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$ |
1,867.8 |
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$ |
1,661.9 |
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205.9 |
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12.4 |
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Gross profit |
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897.6 |
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853.6 |
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44.0 |
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5.2 |
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Gross margin |
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48.1 |
% |
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51.4 |
% |
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(330 |
)bps |
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Operating expenses |
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743.4 |
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652.4 |
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91.0 |
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14.0 |
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As a % of sales |
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39.8 |
% |
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39.3 |
% |
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50 |
bps |
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Earnings from operations |
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154.2 |
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201.2 |
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(47.0 |
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(23.4 |
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Operating margin |
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8.3 |
% |
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12.1 |
% |
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(390 |
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Net earnings |
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$ |
90.4 |
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$ |
137.4 |
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(47.0 |
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(34.2 |
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Diluted earnings per share |
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$ |
0.58 |
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$ |
0.88 |
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(0.30 |
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(34.1 |
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Second quarter sales increased 12.4% as a result of a 15.4% increase in domestic sales and a 10.0% increase in international sales, primarily driven by strength in wholesale sales. All segments experienced growth, with Wholesale increasing 18.3% and Direct-to-Consumer increasing 4.3%. On a constant currency basis, sales increased 16.4%.
Wholesale sales growth of $176.1 million, or 18.3%, was led by increases in AMER of 34.9%. Wholesale volume increased 14.8% and average selling price increased 3.1%.
Direct-to-Consumer sales growth of $29.8 million, or 4.3%, was led by increases in AMER of 3.7%, EMEA of 13.5%, and APAC of 2.7%. Direct-to-Consumer average selling price increased 5.3% and volume was essentially flat.
Gross margin was 48.1%, a decrease of 330 basis points, primarily driven by higher per unit freight costs partially offset by average selling price increases.
Operating expenses increased $91.0 million, or 14.0%, and as a percentage of sales, increased 50 basis points to 39.8% from 39.3% in the prior year. Selling expenses increased $25.1 million, or 17.8%, due to higher global demand creation expenditures. General and administrative expenses increased $65.9 million, or 12.9%, primarily due to volume-driven increases in labor and warehouse and distribution expenses, as well as higher rent.
Earnings from operations decreased $47.0 million, or 23.4%, to $154.2 million.
Net earnings were $90.4 million and diluted earnings per share were $0.58, a decrease of 34.1% over the prior year. Diluted earnings per share include an unfavorable impact of $0.11 due to declines in foreign exchange rates, primarily in EMEA.
In the second quarter, the Company’s effective income tax rate was 21.3%.
“Skechers continued the diligent execution of our long-term global growth strategy, achieving record quarterly sales primarily from continued strength in our Wholesale segment,” stated John Vandemore, Chief Financial Officer of Skechers. “Despite pandemic-related lockdowns, disruptions in our global supply chain and macroeconomic volatility, we remain focused on our direct-to-consumer capabilities, distribution infrastructure and deepening connections with our consumers in order to drive long-term growth and shareholder value.”
Six Months 2022 Financial Results
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Six Months Ended June 30, |
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Change |
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(in millions, except per share data) |
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2022 |
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2021 |
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$ |
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Sales |
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$ |
3,687.4 |
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$ |
3,096.3 |
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591.1 |
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19.1 |
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Gross profit |
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1,721.7 |
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1,539.3 |
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182.4 |
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11.9 |
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Gross margin |
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46.7 |
% |
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49.7 |
% |
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(300 |
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Operating expenses |
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1,391.7 |
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1,180.4 |
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211.3 |
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17.9 |
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As a % of sales |
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37.7 |
% |
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38.1 |
% |
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(40 |
)bps |
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Earnings from operations |
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330.1 |
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358.9 |
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(28.8 |
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(8.0 |
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Operating margin |
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9.0 |
% |
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11.6 |
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(260 |
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Net earnings |
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$ |
211.6 |
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$ |
235.9 |
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(24.3 |
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(10.3 |
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Diluted earnings per share |
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$ |
1.35 |
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$ |
1.51 |
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(0.16 |
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(10.6 |
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Year-to-date sales increased 19.1% reflecting a 21.4% increase in domestic sales and a 17.3% increase in international sales with the largest contribution derived from wholesale sales. Both segments experienced increases, with Wholesale increasing 25.4% and Direct-to-Consumer increasing 9.0%. On a constant currency basis, the Company’s total sales increased 22.1%.
Wholesale sales growth of $484.3 million, or 25.4%, was led by increases in AMER of 38.2% and EMEA of 24.0%. Wholesale volume increased 18.8% and average selling price increased 5.9%.
Direct-to-Consumer sales growth of $106.8 million, or 9.0%, was led by increases in AMER of 6.8%, EMEA of 44.2%, which experienced COVID restrictions in the prior year, and APAC of 5.3%. Direct-to-Consumer average selling price increased 9.4% resulting from reduced promotions and higher prices.
Gross margin was 46.7%, a decrease of 300 basis points, primarily driven by higher per unit freight costs partially offset by average selling price increases.
Operating expenses increased $211.3 million or 17.9%. As a percentage of sales, operating expenses improved 40 basis points to 37.7%. Selling expenses increased $42.0 million or 18.1%, primarily due to higher global demand creation expenditures. General and administrative expenses increased $169.3 million or 17.9%, primarily due to higher compensation costs, rent, and volume-driven global warehouse and distribution expenses.
Earnings from operations decreased $28.8 million to $330.1 million.
Net earnings were $211.6 million and diluted earnings per share were $1.35, a decrease of 10.6% over the prior year. Diluted earnings per share include an unfavorable impact of $0.14 due to declines in foreign exchange rates, primarily in EMEA.
The Company’s effective income tax rate was essentially flat year-over-year at 20.6%.
Cash, cash equivalents and investments totaled $946.4 million, a decrease of $94.0 million, or 9.0% from December 31, 2021, primarily as a result of changes in working capital and completing $49.2 million of share repurchases year-to-date.
Inventory was $1.56 billion, an increase of $92.9 million or 6.3% from December 31, 2021. Increased inventory levels primarily reflect growth in AMER.
Share Repurchase
During the second quarter, the Company repurchased nearly 636,000 shares of its Class A common stock for $24.2 million. Year-to-date 2022, the Company has repurchased almost 1.3 million shares of its Class A common stock at a cost of $49.2 million. At June 30, 2022, approximately $450.8 million remained available under the Company’s share repurchase program.
Outlook
For the third quarter of 2022, the Company believes it will achieve sales between $1.80 billion and $1.85 billion and diluted earnings per share of between $0.70 and $0.75. Further, the Company believes that for the fiscal year 2022, it will achieve sales between $7.2 billion and $7.4 billion and diluted earnings per share of between $2.60 and $2.70.
Store Count
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Number of Stores |
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December 31, 2021 |
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Opened |
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Closed(1) |
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June 30, 2022 |
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Domestic stores |
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515 |
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28 |
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(17 |
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526 |
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International stores |
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845 |
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49 |
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(58 |
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836 |
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Distributor, licensee and franchise stores |
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2,946 |
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202 |
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(155 |
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2,993 |
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Total Skechers stores |
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4,306 |
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279 |
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(230 |
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4,355 |
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(1) |
Does not reflect temporary closures due to the COVID-19 pandemic. |
Second Quarter 2022 Conference Call
The Company will host a conference call today at 4:30 p.m. ET / 1:30 p.m. PT to discuss its second quarter 2022 financial results. The call can be accessed on the Investor Relations section of the Company’s website at investors.skechers.com. For those unable to participate during the live broadcast, a replay will be available beginning July 26, 2022 at 7:30 p.m. ET, through August 9, 2022, at 11:59 p.m. ET. To access the replay, dial 844-512-2921 (U.S.) or 412-317-6671 (International) and use passcode: 13731127.
About SKECHERS U.S.A., Inc.
Skechers U.S.A., Inc., The Comfort Technology Company™ based in Southern California, designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. The Company’s collections are available in over 180 countries and territories through department and specialty stores, and direct to consumers through digital stores and 4,355 Company- and third-party-owned physical retail stores. The Company manages its international business through a network of wholly-owned subsidiaries, joint venture partners, and distributors. For more information, please visit about.skechers.com and follow us on Facebook, Instagram, Twitter and TikTok.
Reference in this press release to “Sales” refers to Skechers’ net sales reported under GAAP. This announcement contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, 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 may include, without limitation, Skechers’ future domestic and international growth, financial results and operations including expected net sales and earnings, its development of new products, future demand for its products, its planned domestic and international expansion, opening of new stores and additional expenditures, and advertising and marketing initiatives. Forward-looking statements can be identified by the use of forward-looking language such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” “project,” “will,” “could,” “may,” “might,” or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements. Factors that might cause or contribute to such differences include the disruption of business and operations due to the COVID-19 pandemic; delays or disruptions in our supply chain; international economic, political and market conditions including the effects of inflation around the world, the challenging consumer retail markets in the United States and the impact of Russia’s invasion of Ukraine; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers; decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers, especially in the highly competitive performance footwear market; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in Skechers’ annual report on Form 10-K for the year ended December 31, 2021 and its quarterly reports on Form 10-Q in 2022. Taking these and other risk factors associated with the COVID-19 pandemic into consideration, the dynamic nature of these circumstances means that what is stated in this press release could change at any time, and as a result, actual results could differ materially from those contemplated by such forward-looking statements. The risks included here are not exhaustive. Skechers operates 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 our 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 future performance.
Investor Relations
Eunice Han
investors@skechers.com
Press
Jennifer Clay
jennc@skechers.com
SKECHERS U.S.A., INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
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As of |
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As of |
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(in thousands) |
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June 30, 2022 |
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December 31, 2021 |
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ASSETS |
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Current assets |
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Cash and cash equivalents |
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$ |
751,904 |
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$ |
796,283 |
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Short-term investments |
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105,099 |
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98,580 |
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Trade accounts receivable, net |
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916,784 |
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732,793 |
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Other receivables |
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55,039 |
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80,043 |
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Inventory |
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1,563,907 |
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1,470,994 |
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Prepaid expenses and other |
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177,236 |
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193,547 |
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Total current assets |
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3,569,969 |
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3,372,240 |
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Property, plant and equipment, net |
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1,225,529 |
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1,128,909 |
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Operating lease right-of-use assets |
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1,168,385 |
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1,224,580 |
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Deferred tax assets |
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452,747 |
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451,355 |
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Long-term investments |
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89,423 |
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145,590 |
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Goodwill |
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93,497 |
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93,497 |
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Other assets, net |
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77,046 |
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75,109 |
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Total non-current assets |
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3,106,627 |
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3,119,040 |
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TOTAL ASSETS |
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$ |
6,676,596 |
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$ |
6,491,280 |
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LIABILITIES AND EQUITY |
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Current liabilities |
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Accounts payable |
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$ |
972,399 |
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$ |
876,342 |
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Accrued expenses |
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258,640 |
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265,420 |
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Operating lease liabilities |
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223,230 |
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225,658 |
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Current installments of long-term borrowings |
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73,414 |
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76,967 |
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Short-term borrowings |
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— |
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1,195 |
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Total current liabilities |
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1,527,683 |
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1,445,582 |
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Long-term operating lease liabilities |
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1,049,330 |
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1,094,748 |
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Long-term borrowings |
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253,260 |
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263,445 |
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Deferred tax liabilities |
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9,712 |
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11,820 |
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Other long-term liabilities |
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118,507 |
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133,613 |
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Total non-current liabilities |
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1,430,809 |
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1,503,626 |
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Total liabilities |
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2,958,492 |
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2,949,208 |
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Stockholders’ equity |
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Preferred Stock |
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— |
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— |
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Class A Common Stock |
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135 |
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135 |
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Class B Common Stock |
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21 |
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21 |
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Additional paid-in capital |
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402,360 |
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429,608 |
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Accumulated other comprehensive loss |
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(75,784 |
) |
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(48,323 |
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Retained earnings |
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3,089,530 |
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2,877,903 |
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Skechers U.S.A., Inc. equity |
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3,416,262 |
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3,259,344 |
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Noncontrolling interests |
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301,842 |
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282,728 |
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Total stockholders' equity |
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3,718,104 |
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3,542,072 |
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TOTAL LIABILITIES AND EQUITY |
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$ |
6,676,596 |
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$ |
6,491,280 |
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SKECHERS U.S.A., INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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(in thousands, except per share data) |
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2022 |
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2021 |
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2022 |
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2021 |
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Sales |
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$ |
1,867,804 |
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$ |
1,661,871 |
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$ |
3,687,398 |
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$ |
3,096,326 |
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Cost of sales |
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970,225 |
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808,279 |
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1,965,656 |
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1,557,075 |
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Gross profit |
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897,579 |
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853,592 |
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1,721,742 |
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|
1,539,251 |
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling |
|
|
166,609 |
|
|
|
141,470 |
|
|
|
274,818 |
|
|
|
232,795 |
|
|
General and administrative |
|
|
576,812 |
|
|
|
510,912 |
|
|
|
1,116,862 |
|
|
|
947,578 |
|
|
Total operating expenses |
|
|
743,421 |
|
|
|
652,382 |
|
|
|
1,391,680 |
|
|
|
1,180,373 |
|
|
Earnings from operations |
|
|
154,158 |
|
|
|
201,210 |
|
|
|
330,062 |
|
|
|
358,878 |
|
|
Other income (expense) |
|
|
(19,259 |
) |
|
|
2,158 |
|
|
|
(25,005 |
) |
|
|
(12,016 |
) |
|
Earnings before income taxes |
|
|
134,899 |
|
|
|
203,368 |
|
|
|
305,057 |
|
|
|
346,862 |
|
|
Income tax expense |
|
|
28,739 |
|
|
|
41,545 |
|
|
|
62,731 |
|
|
|
70,530 |
|
|
Net earnings |
|
|
106,160 |
|
|
|
161,823 |
|
|
|
242,326 |
|
|
|
276,332 |
|
|
Less: Net earnings attributable to noncontrolling interests |
|
|
15,756 |
|
|
|
24,454 |
|
|
|
30,699 |
|
|
|
40,390 |
|
|
Net earnings attributable to Skechers U.S.A., Inc. |
|
$ |
90,404 |
|
|
$ |
137,369 |
|
|
$ |
211,627 |
|
|
$ |
235,942 |
|
|
Net earnings per share attributable to Skechers U.S.A., Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.58 |
|
|
$ |
0.88 |
|
|
$ |
1.36 |
|
|
$ |
1.52 |
|
|
Diluted |
|
$ |
0.58 |
|
|
$ |
0.88 |
|
|
$ |
1.35 |
|
|
$ |
1.51 |
|
|
Weighted-average shares used in calculating net earnings per share attributable to Skechers U.S.A., Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
155,941 |
|
|
|
155,561 |
|
|
|
155,969 |
|
|
|
155,196 |
|
|
Diluted |
|
|
156,748 |
|
|
|
156,674 |
|
|
|
157,074 |
|
|
|
156,321 |
|
SKECHERS U.S.A., INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
As previously announced, during the first quarter of 2022 Skechers refined the way it views its business operations and decision-making and now presents its reportable segment results as Wholesale and Direct-to-Consumer. Prior period results have been recast to reflect current reportable segments. There was no impact to the consolidated financial results of the Company as a result of this change.
Segment Information
|
|
|
Three Months Ended June 30, |
|
|
Change |
|
||||||||||
|
(in millions) |
|
2022 |
|
|
2021 |
|
|
$ |
|
|
% |
|
||||
|
Wholesale sales |
|
$ |
1,140.3 |
|
|
$ |
964.2 |
|
|
|
176.1 |
|
|
|
18.3 |
|
|
Gross profit |
|
|
414.5 |
|
|
|
379.4 |
|
|
|
35.1 |
|
|
|
9.2 |
|
|
Gross margin |
|
|
36.3 |
% |
|
|
39.4 |
% |
|
|
|
|
|
|
(300 |
)bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct-to-Consumer sales |
|
$ |
727.5 |
|
|
$ |
697.7 |
|
|
|
29.8 |
|
|
|
4.3 |
|
|
Gross profit |
|
|
483.1 |
|
|
|
474.2 |
|
|
|
8.9 |
|
|
|
1.9 |
|
|
Gross margin |
|
|
66.4 |
% |
|
|
68.0 |
% |
|
|
|
|
|
|
(160 |
)bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total sales |
|
$ |
1,867.8 |
|
|
$ |
1,661.9 |
|
|
|
205.9 |
|
|
|
12.4 |
|
|
Gross profit |
|
|
897.6 |
|
|
|
853.6 |
|
|
|
44.0 |
|
|
|
5.2 |
|
|
Gross margin |
|
|
48.1 |
% |
|
|
51.4 |
% |
|
|
|
|
|
|
(330 |
)bps |
|
|
|
Six Months Ended June 30, |
|
|
Change |
|
||||||||||
|
(in millions) |
|
2022 |
|
|
2021 |
|
|
$ |
|
|
% |
|
||||
|
Wholesale sales |
|
$ |
2,391.6 |
|
|
$ |
1,907.3 |
|
|
|
484.3 |
|
|
|
25.4 |
|
|
Gross profit |
|
|
869.4 |
|
|
|
749.0 |
|
|
|
120.4 |
|
|
|
16.1 |
|
|
Gross margin |
|
|
36.4 |
% |
|
|
39.3 |
% |
|
|
|
|
|
|
(290 |
)bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct-to-Consumer sales |
|
$ |
1,295.8 |
|
|
$ |
1,189.0 |
|
|
|
106.8 |
|
|
|
9.0 |
|
|
Gross profit |
|
|
852.3 |
|
|
|
790.3 |
|
|
|
62.0 |
|
|
|
7.9 |
|
|
Gross margin |
|
|
65.8 |
% |
|
|
66.5 |
% |
|
|
|
|
|
|
(70 |
)bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total sales |
|
$ |
3,687.4 |
|
|
$ |
3,096.3 |
|
|
|
591.1 |
|
|
|
19.1 |
|
|
Gross profit |
|
|
1,721.7 |
|
|
|
1,539.3 |
|
|
|
182.4 |
|
|
|
11.9 |
|
|
Gross margin |
|
|
46.7 |
% |
|
|
49.7 |
% |
|
|
|
|
|
|
(300 |
)bps |
Additional Sales Information
|
|
|
Three Months Ended June 30, |
|
|
Change |
|
||||||||||
|
(in millions) |
|
2022 |
|
|
2021 |
|
|
$ |
|
|
% |
|
||||
|
Geographic sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale |
|
$ |
521.0 |
|
|
$ |
401.3 |
|
|
|
119.7 |
|
|
|
29.8 |
|
|
Direct-to-Consumer |
|
|
319.5 |
|
|
|
327.0 |
|
|
|
(7.5 |
) |
|
|
(2.3 |
) |
|
Total domestic sales |
|
|
840.5 |
|
|
|
728.3 |
|
|
|
112.2 |
|
|
|
15.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale |
|
|
619.3 |
|
|
|
562.9 |
|
|
|
56.4 |
|
|
|
10.0 |
|
|
Direct-to-Consumer |
|
|
408.0 |
|
|
|
370.7 |
|
|
|
37.3 |
|
|
|
10.1 |
|
|
Total international sales |
|
|
1,027.3 |
|
|
|
933.6 |
|
|
|
93.7 |
|
|
|
10.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total sales |
|
$ |
1,867.8 |
|
|
$ |
1,661.9 |
|
|
|
205.9 |
|
|
|
12.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas (AMER) |
|
$ |
1,033.9 |
|
|
$ |
855.2 |
|
|
|
178.7 |
|
|
|
20.9 |
|
|
Europe, Middle East & Africa (EMEA) |
|
|
374.5 |
|
|
|
348.1 |
|
|
|
26.4 |
|
|
|
7.6 |
|
|
Asia Pacific (APAC) |
|
|
459.4 |
|
|
|
458.6 |
|
|
|
0.8 |
|
|
|
0.2 |
|
|
Total sales |
|
$ |
1,867.8 |
|
|
$ |
1,661.9 |
|
|
|
205.9 |
|
|
|
12.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China sales |
|
$ |
254.9 |
|
|
$ |
316.9 |
|
|
|
(62.0 |
) |
|
|
(19.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributor sales |
|
$ |
128.4 |
|
|
$ |
96.7 |
|
|
|
31.7 |
|
|
|
32.8 |
|
|
|
|
Six Months Ended June 30, |
|
|
Change |
|
||||||||||
|
(in millions) |
|
2022 |
|
|
2021 |
|
|
$ |
|
|
% |
|
||||
|
Geographic sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale |
|
$ |
1,059.6 |
|
|
$ |
778.5 |
|
|
|
281.1 |
|
|
|
36.1 |
|
|
Direct-to-Consumer |
|
|
559.0 |
|
|
|
554.4 |
|
|
|
4.6 |
|
|
|
0.8 |
|
|
Total domestic sales |
|
|
1,618.6 |
|
|
|
1,332.9 |
|
|
|
285.7 |
|
|
|
21.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale |
|
|
1,332.0 |
|
|
|
1,128.8 |
|
|
|
203.2 |
|
|
|
18.0 |
|
|
Direct-to-Consumer |
|
|
736.8 |
|
|
|
634.6 |
|
|
|
102.2 |
|
|
|
16.1 |
|
|
Total international sales |
|
|
2,068.8 |
|
|
|
1,763.4 |
|
|
|
305.4 |
|
|
|
17.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total sales |
|
$ |
3,687.4 |
|
|
$ |
3,096.3 |
|
|
|
591.1 |
|
|
|
19.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas (AMER) |
|
$ |
1,980.8 |
|
|
$ |
1,580.9 |
|
|
|
399.9 |
|
|
|
25.3 |
|
|
Europe, Middle East & Africa (EMEA) |
|
|
815.7 |
|
|
|
643.5 |
|
|
|
172.2 |
|
|
|
26.8 |
|
|
Asia Pacific (APAC) |
|
|
890.9 |
|
|
|
871.9 |
|
|
|
19.0 |
|
|
|
2.2 |
|
|
Total sales |
|
$ |
3,687.4 |
|
|
$ |
3,096.3 |
|
|
|
591.1 |
|
|
|
19.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China sales |
|
$ |
527.9 |
|
|
$ |
567.5 |
|
|
|
(39.6 |
) |
|
|
(7.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributor sales |
|
$ |
225.4 |
|
|
$ |
176.9 |
|
|
|
48.5 |
|
|
|
27.4 |
|
SKECHERS U.S.A., INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES (Unaudited)
Constant Currency Adjustment (Non-GAAP Financial Measure)
We evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of period-over-period fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our results of operations, thereby facilitating period-to-period comparisons of our business performance and is consistent with how management evaluates the Company’s performance. We calculate constant currency percentages by converting our current period local currency financial results using the prior-period exchange rates and comparing these adjusted amounts to our prior period reported results.
|
|
|
Three Months Ended June 30, |
|
|||||||||||||||||||||
|
|
|
2022 |
|
|
2021 |
|
|
Change |
|
|||||||||||||||
|
(in millions, except per share data) |
|
Reported GAAP Measure |
|
|
Constant Currency Adjustment |
|
|
Adjusted for Non-GAAP Measures |
|
|
Reported GAAP Measure |
|
|
$ |
|
|
% |
|
||||||
|
Sales |
|
$ |
1,867.8 |
|
|
$ |
65.9 |
|
|
$ |
1,933.7 |
|
|
$ |
1,661.9 |
|
|
|
271.8 |
|
|
|
16.4 |
|
|
Cost of sales |
|
|
970.2 |
|
|
|
38.5 |
|
|
|
1,008.7 |
|
|
|
808.3 |
|
|
|
200.4 |
|
|
|
24.8 |
|
|
Gross profit |
|
|
897.6 |
|
|
|
27.4 |
|
|
|
925.0 |
|
|
|
853.6 |
|
|
|
71.4 |
|
|
|
8.4 |
|
|
Operating expenses |
|
|
743.4 |
|
|
|
23.3 |
|
|
|
766.7 |
|
|
|
652.4 |
|
|
|
114.3 |
|
|
|
17.5 |
|
|
Earnings from operations |
|
|
154.2 |
|
|
|
4.1 |
|
|
|
158.3 |
|
|
|
201.2 |
|
|
|
(42.9 |
) |
|
|
(21.3 |
) |
|
Other income (expense) |
|
|
(19.3 |
) |
|
|
16.2 |
|
|
|
(3.1 |
) |
|
|
2.2 |
|
|
|
(5.3 |
) |
|
n/m |
|
|
|
Income tax expense |
|
|
28.7 |
|
|
|
1.3 |
|
|
|
30.0 |
|
|
|
41.5 |
|
|
|
(11.5 |
) |
|
|
(27.7 |
) |
|
Less: Noncontrolling interests |
|
|
15.8 |
|
|
|
0.5 |
|
|
|
16.3 |
|
|
|
24.5 |
|
|
|
(8.2 |
) |
|
|
(33.5 |
) |
|
Net earnings |
|
$ |
90.4 |
|
|
$ |
18.5 |
|
|
$ |
108.9 |
|
|
$ |
137.4 |
|
|
|
(28.5 |
) |
|
|
(20.7 |
) |
|
Diluted earnings per share |
|
$ |
0.58 |
|
|
$ |
0.11 |
|
|
$ |
0.69 |
|
|
$ |
0.88 |
|
|
|
(0.19 |
) |
|
|
(21.6 |
) |
|
|
|
Six Months Ended June 30, |
|
|||||||||||||||||||||
|
|
|
2022 |
|
|
2021 |
|
|
Change |
|
|||||||||||||||
|
(in millions, except per share data) |
|
Reported GAAP Measure |
|
|
Constant Currency Adjustment |
|
|
Adjusted for Non-GAAP Measures |
|
|
Reported GAAP Measure |
|
|
$ |
|
|
% |
|
||||||
|
Sales |
|
$ |
3,687.4 |
|
|
$ |
93.0 |
|
|
$ |
3,780.4 |
|
|
$ |
3,096.3 |
|
|
|
684.1 |
|
|
|
22.1 |
|
|
Cost of sales |
|
|
1,965.7 |
|
|
|
57.0 |
|
|
|
2,022.7 |
|
|
|
1,557.0 |
|
|
|
465.7 |
|
|
|
29.9 |
|
|
Gross profit |
|
|
1,721.7 |
|
|
|
36.0 |
|
|
|
1,757.7 |
|
|
|
1,539.3 |
|
|
|
218.4 |
|
|
|
14.2 |
|
|
Operating expenses |
|
|
1,391.7 |
|
|
|
30.0 |
|
|
|
1,421.7 |
|
|
|
1,180.4 |
|
|
|
241.3 |
|
|
|
20.4 |
|
|
Earnings from operations |
|
|
330.1 |
|
|
|
6.0 |
|
|
|
336.0 |
|
|
|
358.9 |
|
|
|
(22.9 |
) |
|
|
(6.4 |
) |
|
Other income (expense) |
|
|
(25.1 |
) |
|
|
18.7 |
|
|
|
(6.4 |
) |
|
|
(12.1 |
) |
|
|
5.7 |
|
|
|
(47.1 |
) |
|
Income tax expense |
|
|
62.7 |
|
|
|
1.3 |
|
|
|
64.0 |
|
|
|
70.5 |
|
|
|
(6.5 |
) |
|
|
(9.2 |
) |
|
Less: Noncontrolling interests |
|
|
30.7 |
|
|
|
0.2 |
|
|
|
30.9 |
|
|
|
40.4 |
|
|
|
(9.5 |
) |
|
|
(23.5 |
) |
|
Net earnings |
|
$ |
211.6 |
|
|
$ |
23.2 |
|
|
$ |
234.7 |
|
|
$ |
235.9 |
|
|
|
(1.2 |
) |
|
|
(0.5 |
) |
|
Diluted earnings per share |
|
$ |
1.35 |
|
|
$ |
0.14 |
|
|
$ |
1.49 |
|
|
$ |
1.51 |
|
|
|
(0.02 |
) |
|
|
(1.3 |
) |
Document And Entity Information |
Jul. 26, 2022 |
|---|---|
| Cover [Abstract] | |
| Document Type | 8-K |
| Amendment Flag | false |
| Document Period End Date | Jul. 26, 2022 |
| Entity Registrant Name | SKECHERS USA INC |
| Entity Central Index Key | 0001065837 |
| Entity Emerging Growth Company | false |
| Entity File Number | 001-14429 |
| Entity Incorporation, State or Country Code | DE |
| Entity Tax Identification Number | 95-4376145 |
| Entity Address, Address Line One | 228 Manhattan Beach Boulevard |
| Entity Address, City or Town | Manhattan Beach |
| Entity Address, State or Province | CA |
| Entity Address, Postal Zip Code | 90266 |
| City Area Code | 310 |
| Local Phone Number | 318-3100 |
| Written Communications | false |
| Soliciting Material | false |
| Pre-commencement Tender Offer | false |
| Pre-commencement Issuer Tender Offer | false |
| Title of 12(b) Security | Class A Common Stock, par value of $0.001 per share |
| Trading Symbol | SKX |
| Security Exchange Name | NYSE |
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