| Segment and Geographic Information |
(9)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
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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(in thousands) |
|
2025 |
|
|
2024 |
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|
2025 |
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|
2024 |
|
Wholesale sales |
|
$ |
1,301,428 |
|
|
$ |
1,132,111 |
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|
$ |
2,833,636 |
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|
$ |
2,553,809 |
|
Cost of sales |
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|
763,041 |
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|
635,129 |
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|
1,620,079 |
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|
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1,420,787 |
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Gross profit |
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538,387 |
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496,982 |
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1,213,557 |
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1,133,022 |
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Gross margin |
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41.4 |
% |
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43.9 |
% |
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42.8 |
% |
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44.4 |
% |
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Direct-to-Consumer sales |
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$ |
1,138,596 |
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$ |
1,025,532 |
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$ |
2,017,959 |
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$ |
1,855,421 |
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Cost of sales |
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|
375,680 |
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|
338,077 |
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|
675,839 |
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|
622,372 |
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Gross profit |
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762,916 |
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|
687,455 |
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1,342,120 |
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1,233,049 |
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Gross margin |
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67.0 |
% |
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67.0 |
% |
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|
66.5 |
% |
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|
66.5 |
% |
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Total sales |
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$ |
2,440,024 |
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|
$ |
2,157,643 |
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|
$ |
4,851,595 |
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|
$ |
4,409,230 |
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Cost of sales |
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|
1,138,721 |
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|
973,206 |
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2,295,918 |
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2,043,159 |
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Gross profit |
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1,301,303 |
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1,184,437 |
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2,555,677 |
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2,366,071 |
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Gross margin |
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53.3 |
% |
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54.9 |
% |
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52.7 |
% |
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53.7 |
% |
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(in thousands) |
|
As of
June 30, 2025 |
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As of
December 31, 2024 |
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Identifiable assets |
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Wholesale |
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$ |
4,287,423 |
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$ |
3,915,362 |
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Direct-to-Consumer |
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4,990,693 |
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4,540,396 |
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Total |
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$ |
9,278,116 |
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$ |
8,455,758 |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
|
(in thousands) |
|
2025 |
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2024 |
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2025 |
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|
2024 |
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Additions to property, plant and equipment |
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Wholesale |
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$ |
117,668 |
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$ |
64,598 |
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$ |
220,202 |
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$ |
97,361 |
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Direct-to-Consumer |
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65,954 |
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47,852 |
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|
110,521 |
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|
|
72,176 |
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Total |
|
$ |
183,622 |
|
|
$ |
112,450 |
|
|
$ |
330,723 |
|
|
$ |
169,537 |
|
Geographic Information
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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(in thousands) |
|
2025 |
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2024 |
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|
2025 |
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|
2024 |
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Geographic sales |
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Domestic Wholesale |
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$ |
413,293 |
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$ |
446,915 |
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$ |
909,460 |
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$ |
922,865 |
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Domestic Direct-to-Consumer |
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448,767 |
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416,930 |
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806,303 |
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739,784 |
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Total domestic sales |
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862,060 |
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863,845 |
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1,715,763 |
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1,662,649 |
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International Wholesale |
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888,135 |
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685,196 |
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1,924,176 |
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1,630,944 |
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International Direct-to-Consumer |
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689,829 |
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608,602 |
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1,211,656 |
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1,115,637 |
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Total international sales |
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1,577,964 |
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1,293,798 |
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3,135,832 |
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2,746,581 |
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Total sales |
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$ |
2,440,024 |
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$ |
2,157,643 |
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$ |
4,851,595 |
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$ |
4,409,230 |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
|
(in thousands) |
|
2025 |
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|
2024 |
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|
2025 |
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|
2024 |
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Regional sales |
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Americas (AMER) |
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$ |
1,112,991 |
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$ |
1,100,929 |
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$ |
2,217,361 |
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$ |
2,120,397 |
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Europe, Middle East & Africa (EMEA) |
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731,551 |
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492,534 |
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1,449,762 |
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1,120,186 |
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Asia Pacific (APAC) |
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595,482 |
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564,180 |
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1,184,472 |
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1,168,647 |
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Total sales |
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$ |
2,440,024 |
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$ |
2,157,643 |
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$ |
4,851,595 |
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$ |
4,409,230 |
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China sales |
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$ |
287,154 |
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$ |
312,742 |
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$ |
555,815 |
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$ |
632,256 |
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(in thousands) |
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As of
June 30, 2025 |
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As of
December 31, 2024 |
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Property, plant and equipment, net |
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Domestic |
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$ |
1,395,313 |
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$ |
1,236,882 |
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International |
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|
679,943 |
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|
598,048 |
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Total |
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$ |
2,075,256 |
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$ |
1,834,930 |
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China property plant and equipment, net |
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$ |
337,651 |
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$ |
303,607 |
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CONCENTRATIONS OF RISK
The Company’s sales to its five largest customers accounted for approximately 9.7% and 9.0% of total sales for the three months ended June 30, 2025 and 2024, and for the six months ended June 30, 2025 and 2024 were 8.8% and 8.7%.
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 $6.3 billion and $5.6 billion as of June 30, 2025 and December 31, 2024.
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 three months ended June 30, 2025 and 2024 were $1.0 million and $1.3 million, and $2.7 million for each of the six months ended June 30, 2025 and 2024.
The Company’s accounts receivables, excluding allowances for credit losses and chargebacks, by geography are summarized as follows:
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(in thousands) |
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As of
June 30, 2025 |
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As of
December 31, 2024 |
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Domestic accounts receivable |
|
$ |
347,494 |
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$ |
345,488 |
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International accounts receivable |
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877,506 |
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|
711,686 |
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The Company’s top five manufacturers produced the following percentages of total production:
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Three Months Ended June 30, |
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Six Months Ended June 30, |
|
(percentage of total production) |
2025 |
|
|
2024 |
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|
2025 |
|
|
2024 |
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Manufacturer #1 |
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21.1 |
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19.5 |
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20.9 |
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19.8 |
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Manufacturer #2 |
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6.2 |
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6.5 |
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6.0 |
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7.6 |
|
Manufacturer #3 |
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4.6 |
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6.3 |
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4.8 |
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|
5.7 |
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Manufacturer #4 |
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3.5 |
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6.0 |
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3.7 |
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5.7 |
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Manufacturer #5 |
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3.3 |
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4.3 |
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3.5 |
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|
3.9 |
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Total |
|
38.7 |
|
|
|
42.6 |
|
|
|
38.9 |
|
|
|
42.7 |
|
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