The Annual Sales Exceeded 60 Billion Yuan, And The Second Largest Footwear Brand In The United States Set A Record In 2024

As early as February 6, US time, SKECH announced its financial results for the fourth quarter and the whole year as of December 31, 2024. The Chinese market continued to face adverse factors, but the sales in the Americas, Europe, the Middle East and Africa increased by 25%, and the sales in the Asia Pacific region increased by 3%. Other financial data are as follows:

Financial performance in the fourth quarter of 2024

The sales volume in the fourth quarter was 2.21 billion US dollars, with a year-on-year growth of 12.8%, including 18.0% domestic growth and 9.8% international growth. Wholesale increased by 17.5% and direct to consumers by 8.4%. Due to the favorable channel mix, the gross profit margin was 53.3%, up 20 basis points.

In terms of expenses: in the fourth quarter, operating expenses increased by $101.7 million, or 11.2%, and the percentage in sales decreased by 70 basis points to 45.8%. Selling expenses increased by $14.2 million, or 7.7%, and the percentage of sales decreased by 40 basis points to 8.9%. This increase was mainly due to demand creating expenditure, which increased as a percentage of sales. General and administrative expenses increased by $87.5 million, or 12.0%, and their percentage in sales decreased by 30 basis points to 36.9%. The increase in expenses is mainly driven by the cost of labor and facilities (including rent and depreciation).

The operating income was 165.5 million dollars, up 35.2 million dollars or 27.0% year on year.

Financial performance in 2024

In 2024, the annual sales will be 8.97 billion US dollars, with a year-on-year growth of 12.1%, and both international and domestic sales will increase by 12.1%. Wholesale increased by 13.2% and direct to consumers by 10.7%. The gross profit margin was 53.2%, an increase of 120 basis points, due to the reduction of freight and cost per unit.

In terms of expenses: operating expenses increased by 495.5 million dollars or 14.7%. Operating expenses as a percentage of sales increased by 100 basis points to 43.1%. Selling expenses increased by $123.7 million (18.3%), mainly due to the increase in global demand creation expenditure. General and administrative expenses increased by $371.8 million or 13.8%, mainly driven by labor and facility costs (including rent and depreciation).

Operating income increased by $119.5 million to $904.3 million, with an operating profit margin of 10.1%.

Annual inventory

Inventory in 2024 was $1.92 billion, an increase of $394 million or 25.8% from December 31, 2023, due to the growth of our business, including the increase of goods in transit, partly due to the disruption of the Suez Canal.

In 2024, the annual sales of SKECH will reach the highest value in the brand sales history. David Weinberg, chief operating officer of SKECH, said: "SKECH has such performance results, reflecting the continuous strong global consumer demand supported by effective marketing activities. In addition, we are still committed to investing in our operations, including expanding our distribution centers in North America, China and Europe, and providing superior customer experience in direct to consumers "

Robert Greenberg, CEO of SKECH "We believe that our performance departments such as basketball, football, golf, running and PEAK shoes also have huge growth opportunities worldwide. We believe that the strategic products, marketing and operation plans implemented by our professional teams will achieve significant achievements and continue to grow in the coming year."

In addition, the management of SKECH agreed that by 2025, the total capital expenditure will be between 60 and 700 million dollars, including investment in expanding the distribution centers of brands in the United States and China, to achieve future growth.

About Skechers

Skechers is a company headquartered in Southern California, The Comfort Technology Company ®， Design, develop and sell various lifestyle and high-performance footwear, clothing and accessories for men, women and children. The product series is sold in about 180 countries and regions through third-party retailers, markets, brand websites and about 5300 Skechers retail stores.