Annual report [Section 13 and 15(d), not S-K Item 405]

Segment and Geographic Information

v3.25.0.1
Segment and Geographic Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment and Geographic Information
(13)
Segment and Geographic Information

The Company has two reportable segments, Wholesale and Direct-to-Consumer. Wholesale includes Skechers-branded stores operated by third-party franchisees and licensees, family shoe stores, specialty athletic and sporting goods retailers, department stores and big box club stores, and distributors in select international markets. Direct-to-Consumer includes Company-owned Skechers-branded stores, Company-owned e-commerce sites and leading third-party marketplaces and digital platforms. The Company’s Chief Operating Decision Maker ("CODM") is its Chief Operating Officer, who evaluates segment performance based on sales and gross margin. This information is used by the CODM to analyze the growth of each segment and then makes decisions about how to allocate capital and other resources to each segment. Other costs and expenses of the Company are analyzed on an aggregate basis and not allocated to the segments. The following summarizes the Company’s operations by segment and geographic area:

Segment Information

 

 

Year Ended December 31,

 

(in thousands)

 

2024

 

 

2023

 

 

2022

 

Wholesale sales

 

$

5,100,479

 

 

$

4,504,776

 

 

$

4,632,429

 

Cost of sales

 

 

2,892,883

 

 

 

2,657,957

 

 

 

2,963,153

 

Gross profit

 

 

2,207,596

 

 

 

1,846,819

 

 

 

1,669,276

 

Gross margin

 

 

43.3

%

 

 

41.0

%

 

 

36.0

%

 

 

 

 

 

 

 

 

 

 

Direct-to-Consumer sales

 

$

3,868,872

 

 

$

3,495,566

 

 

$

2,812,121

 

Cost of sales

 

 

1,309,029

 

 

 

1,189,981

 

 

 

966,040

 

Gross profit

 

 

2,559,843

 

 

 

2,305,585

 

 

 

1,846,081

 

Gross margin

 

 

66.2

%

 

 

66.0

%

 

 

65.6

%

 

 

 

 

 

 

 

 

 

 

Total sales

 

$

8,969,351

 

 

$

8,000,342

 

 

$

7,444,550

 

Cost of sales

 

 

4,201,912

 

 

 

3,847,938

 

 

 

3,929,193

 

Gross profit

 

 

4,767,439

 

 

 

4,152,404

 

 

 

3,515,357

 

Gross margin

 

 

53.2

%

 

 

51.9

%

 

 

47.2

%

 

 

 

As of December 31,

 

(in thousands)

 

2024

 

 

2023

 

Identifiable assets

 

 

 

 

 

 

Wholesale

 

$

3,915,362

 

 

$

3,607,537

 

Direct-to-Consumer

 

 

4,540,396

 

 

 

3,939,814

 

Total

 

$

8,455,758

 

 

$

7,547,351

 

 

 

 

Year Ended December 31,

 

(in thousands)

 

2024

 

 

2023

 

 

2022

 

Additions to property, plant and equipment

 

 

 

 

 

 

 

 

 

Wholesale

 

$

236,968

 

 

$

225,217

 

 

$

255,311

 

Direct-to-Consumer

 

 

179,826

 

 

 

98,505

 

 

 

103,681

 

Total

 

$

416,794

 

 

$

323,722

 

 

$

358,992

 

 

Geographic Information

 

 

Year Ended December 31,

 

(in thousands)

 

2024

 

 

2023

 

 

2022

 

Geographic sales

 

 

 

 

 

 

 

 

 

Domestic Wholesale

 

$

1,867,183

 

 

$

1,567,806

 

 

$

1,831,642

 

Domestic Direct-to-Consumer

 

 

1,553,021

 

 

 

1,482,392

 

 

 

1,243,511

 

Total domestic sales

 

 

3,420,204

 

 

 

3,050,198

 

 

 

3,075,153

 

 

 

 

 

 

 

 

 

 

 

International Wholesale

 

 

3,233,296

 

 

 

2,936,970

 

 

 

2,800,787

 

International Direct-to-Consumer

 

 

2,315,851

 

 

 

2,013,174

 

 

 

1,568,610

 

Total international sales

 

 

5,549,147

 

 

 

4,950,144

 

 

 

4,369,397

 

 

 

 

 

 

 

 

 

 

 

Total sales

 

$

8,969,351

 

 

$

8,000,342

 

 

$

7,444,550

 

 

Regional Sales

 

 

 

 

 

 

 

 

 

Americas (AMER)

 

$

4,367,887

 

 

$

3,945,735

 

 

$

3,854,392

 

Europe, Middle East & Africa (EMEA)

 

 

2,224,390

 

 

 

1,831,848

 

 

 

1,699,215

 

Asia Pacific (APAC)

 

 

2,377,074

 

 

 

2,222,759

 

 

 

1,890,943

 

Total sales

 

$

8,969,351

 

 

$

8,000,342

 

 

$

7,444,550

 

 

 

 

 

 

 

 

 

 

 

China sales

 

$

1,218,186

 

 

$

1,228,630

 

 

$

1,062,724

 

 

 

 

As of December 31,

 

(in thousands)

 

2024

 

 

2023

 

Property, plant and equipment, net

 

 

 

 

 

 

Domestic

 

$

1,236,882

 

 

$

957,569

 

International

 

 

598,048

 

 

 

549,121

 

Total

 

$

1,834,930

 

 

$

1,506,690

 

 

 

 

 

 

 

 

China property plant and equipment, net

 

$

303,607

 

 

$

286,854

 

CONCENTRATIONS OF RISK

The Company’s sales to its five largest customers accounted for approximately 10.3%, 8.4%, and 9.6% of total sales for the years ended December 31, 2024, 2023 and 2022.

Assets located outside the U.S. consist primarily of cash, accounts receivable, inventory, property, plant and equipment, and other assets. Assets held outside the U.S. were $5.6 billion and $5.1 billion at December 31, 2024 and 2023.

The Company performs regular evaluations concerning the ability of customers to satisfy their obligations and provides for estimated credit losses. Domestic accounts receivable generally do not require collateral. Foreign accounts receivable are generally collateralized by letters of credit. The Company’s additions to the provision for expected credit losses for the years ended December 31, 2024, 2023 and 2022 were $5.3 million, $3.9 million, and $5.3 million.

The Company’s accounts receivables, excluding allowances for credit losses and chargebacks, by geography are summarized as follows:

 

 

 

As of December 31,

 

(in thousands)

 

2024

 

 

2023

 

Domestic accounts receivable

 

$

345,488

 

 

$

276,918

 

International accounts receivable

 

 

711,686

 

 

 

641,249

 

 

The Company’s top five manufacturers produced the following:

 

 

Year Ended December 31,

 

(percentage of total production)

 

2024

 

 

2023

 

 

2022

 

Manufacturer #1

 

 

20.4

 

 

 

21.4

 

 

 

16.5

 

Manufacturer #2

 

 

6.5

 

 

 

7.5

 

 

 

7.0

 

Manufacturer #3

 

 

6.3

 

 

 

6.7

 

 

 

5.2

 

Manufacturer #4

 

 

5.6

 

 

 

5.6

 

 

 

5.2

 

Manufacturer #5

 

 

3.6

 

 

 

4.5

 

 

 

5.1

 

Total

 

 

42.4

 

 

 

45.7

 

 

 

39.0