UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission File Number
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) |
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(Address of principal executive office) |
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(Zip Code) |
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(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
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Trading symbol |
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Name of each exchange on which registered |
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Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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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. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
As of July 26, 2024
As of July 26, 2024
SKECHERS U.S.A., INC. AND SUBSIDIARIES
Form 10-Q
Table of Contents
PART I – FINANCIAL INFORMATION
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Item 1. |
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3 |
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4 |
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Condensed Consolidated Statements of Comprehensive Income (Unaudited) |
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6 |
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8 |
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Notes to Condensed Consolidated Financial Statements (Unaudited) |
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Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. |
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Item 4. |
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Item 1. |
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Item 1A. |
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Item 2. |
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Item 3. |
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Item 4. |
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Item 5. |
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Item 6. |
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2
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
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, except par value) |
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June 30, 2024 |
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December 31, 2023 |
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ASSETS |
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Current assets |
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Cash and cash equivalents |
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$ |
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Short-term investments |
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Trade accounts receivable, less allowances of $ |
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Other receivables |
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Inventory |
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Prepaid expenses and other |
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Total current assets ($ |
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Property, plant and equipment, net |
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Operating lease right-of-use assets |
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Deferred tax assets |
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Long-term investments |
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Goodwill |
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Other assets, net |
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Total non-current assets ($ |
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TOTAL ASSETS |
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$ |
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$ |
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LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS' EQUITY |
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Current liabilities |
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Accounts payable |
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$ |
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$ |
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Accrued expenses |
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Operating lease liabilities |
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Current installments of long-term borrowings |
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Short-term borrowings |
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Total current liabilities ($ |
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Long-term operating lease liabilities |
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Long-term borrowings |
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Deferred tax liabilities |
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Other long-term liabilities |
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Total non-current liabilities ($ |
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Total liabilities |
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Redeemable noncontrolling interest (Note 1) |
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Stockholders’ equity |
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Preferred Stock, $ |
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Class A Common Stock, $ |
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Class B Common Stock, $ |
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Additional paid-in capital |
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Accumulated other comprehensive loss |
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Retained earnings |
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Skechers U.S.A., Inc. equity |
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Noncontrolling interests (Note 1) |
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Total stockholders' equity |
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TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS' EQUITY |
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$ |
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$ |
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See accompanying notes to unaudited condensed consolidated financial statements.
3
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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2024 |
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2023 |
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2024 |
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2023 |
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Sales |
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$ |
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$ |
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$ |
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$ |
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Cost of sales |
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Gross profit |
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Operating expenses |
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Selling |
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General and administrative |
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Total operating expenses |
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Earnings from operations |
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Other (expense) income |
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Earnings before income taxes |
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Income tax expense |
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Net earnings |
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Less: Net earnings attributable to noncontrolling interests and redeemable noncontrolling interest (Note 1) |
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Net earnings attributable to Skechers U.S.A., Inc. |
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$ |
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$ |
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$ |
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$ |
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Net earnings per share attributable to Skechers U.S.A., Inc. |
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Basic |
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$ |
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$ |
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$ |
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$ |
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Diluted |
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$ |
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$ |
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$ |
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$ |
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Weighted-average shares used in calculating net earnings per share attributable to Skechers U.S.A., Inc. |
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Basic |
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Diluted |
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See accompanying notes to unaudited condensed consolidated financial statements.
4
SKECHERS U.S.A., INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Income
(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) |
2024 |
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2023 |
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2024 |
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2023 |
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Net earnings |
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$ |
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$ |
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$ |
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$ |
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Other comprehensive income, net of tax |
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Net unrealized (loss) gain on derivative contract |
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( |
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( |
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( |
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Loss on foreign currency translation adjustment |
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( |
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( |
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( |
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Comprehensive income |
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Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest (Note 1) |
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Comprehensive income attributable to Skechers U.S.A., Inc. |
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$ |
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$ |
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$ |
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$ |
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See accompanying notes to unaudited condensed consolidated financial statements.
5
SKECHERS U.S.A., INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Stockholders' Equity and Redeemable Noncontrolling Interest
(Unaudited)
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Shares |
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Amount |
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(in thousands) |
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Class A |
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Class B |
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Class A |
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Class B |
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Additional paid–in capital |
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Accumulated other comprehensive loss |
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Retained |
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Skechers U.S.A., Inc. equity |
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Noncontrolling interests |
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Total stockholders' equity |
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Redeemable noncontrolling interest |
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Balance at March 31, 2024 |
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$ |
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$ |
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$ |
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$ |
( |
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$ |
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$ |
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$ |
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$ |
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$ |
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Net earnings |
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— |
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— |
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— |
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— |
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— |
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— |
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Foreign currency translation adjustment |
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— |
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— |
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— |
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— |
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— |
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( |
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— |
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( |
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( |
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( |
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( |
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Distributions to noncontrolling interests |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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( |
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( |
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— |
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Net unrealized loss on derivative contract |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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( |
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( |
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— |
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Stock compensation expense |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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Proceeds from the employee stock purchase plan |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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Shares issued under the incentive award plan |
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— |
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— |
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( |
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— |
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— |
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— |
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— |
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— |
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— |
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Shares redeemed for employee tax withholdings |
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( |
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— |
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— |
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— |
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( |
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— |
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— |
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( |
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— |
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( |
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— |
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Repurchases of common stock |
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( |
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— |
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— |
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( |
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— |
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— |
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( |
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— |
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( |
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— |
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Conversion of Class B Common Stock into Class A Common Stock |
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( |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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Balance at June 30, 2024 |
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$ |
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$ |
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$ |
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$ |
( |
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$ |
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$ |
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$ |
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$ |
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$ |
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Balance at March 31, 2023 |
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$ |
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$ |
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$ |
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$ |
( |
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$ |
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$ |
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$ |
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$ |
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$ |
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Net earnings |
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— |
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— |
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— |
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— |
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— |
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— |
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Foreign currency translation adjustment |
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— |
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— |
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— |
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— |
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— |
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( |
) |
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— |
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( |
) |
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( |
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( |
) |
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Net unrealized gain on derivative contract |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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Stock compensation expense |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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Proceeds from the employee stock purchase plan |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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Shares issued under the incentive award plan |
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— |
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— |
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( |
) |
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— |
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— |
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— |
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— |
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— |
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— |
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Shares redeemed for employee tax withholdings |
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( |
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— |
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— |
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— |
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( |
) |
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— |
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— |
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( |
) |
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— |
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( |
) |
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— |
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Repurchases of common stock |
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( |
) |
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— |
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( |
) |
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— |
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( |
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— |
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— |
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( |
) |
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— |
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( |
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— |
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Conversion of Class B Common Stock into Class A Common Stock |
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( |
) |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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Balance at June 30, 2023 |
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$ |
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$ |
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$ |
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$ |
( |
) |
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$ |
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$ |
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$ |
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$ |
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$ |
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See accompanying notes to unaudited condensed consolidated financial statements.
6
SKECHERS U.S.A., INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Stockholders' Equity and Redeemable Noncontrolling Interest
(Unaudited)
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Shares |
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Amount |
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(in thousands) |
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Class A |
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Class B |
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Class A |
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Class B |
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Additional paid–in capital |
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Accumulated other comprehensive loss |
|
|
Retained |
|
|
Skechers U.S.A., Inc. equity |
|
|
Noncontrolling interests |
|
|
Total stockholders' equity |
|
|
Redeemable noncontrolling interest |
|
|||||||||||
Balance at December 31, 2023 |
|
|
|
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||||
Net earnings |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Foreign currency translation adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Distributions to noncontrolling interests |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
Net unrealized loss on derivative contract |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
Stock compensation expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|
|
— |
|
|||
Proceeds from the employee stock purchase plan |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|
|
— |
|
||||
Shares issued under the incentive award plan |
|
|
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
||
Shares redeemed for employee tax withholdings |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
|
|
— |
|
Repurchases of common stock |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
|
|
— |
|
Conversion of Class B Common Stock into Class A Common Stock |
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Balance at June 30, 2024 |
|
|
|
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance at December 31, 2022 |
|
|
|
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||||
Net earnings |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Foreign currency translation adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|||||||||||||||