Skechers U.S.A., Inc. ("Skechers" or the "Company") (NYSE:SKX), The Comfort Technology Company^® and a global footwear leader, today announced financial results for the second quarter ended June 30, 2025.

Second Quarter 2025 Highlights

Second quarter sales of $2.44 billion, a year-over-year increase of 13.1%, which includes a favorable impact due to foreign currency exchange rates of $33.9 million; sales of $2.41 billion on a constant currency basis, a year-over-year increase of 11.5%
Wholesale sales grew 15.0%
Direct-to-Consumer sales grew 11.0%
Diluted earnings per share of $1.13, which includes a favorable impact due to foreign currency exchange rates of $0.30 per share; diluted earnings per share on a constant currency basis of $0.83

Second Quarter 2025 Financial Results

	Three Months Ended June 30,						Change
(in millions, except per share data)	2025			2024			$			%
Sales	$	2,440.0		$	2,157.6			282.4			13.1
Gross profit		1,301.3			1,184.4			116.9			9.9
Gross margin		53.3	%		54.9	%					(160) bps
Operating expenses		1,128.2			977.9			150.3			15.4
As a % of sales		46.2	%		45.3	%				90 bps
Earnings from operations		173.1			206.5			(33.4	)		(16.2	)
Operating margin		7.1	%		9.6	%					(250) bps
Net earnings attributable to Skechers U.S.A., Inc.		170.5			140.3			30.2			21.5
Diluted earnings per share	$	1.13		$	0.91			0.22			24.2

Six Months 2025 Financial Results

	Six Months Ended June 30,						Change
(in millions, except per share data)	2025			2024			$			%
Sales	$	4,851.6		$	4,409.2			442.4			10.0
Gross profit		2,555.7			2,366.1			189.6			8.0
Gross margin		52.7	%		53.7	%					(100) bps
Operating expenses		2,117.5			1,860.7			256.7			13.8
As a % of sales		43.6	%		42.2	%				140 bps
Earnings from operations		438.2			505.3			(67.1	)		(13.3	)
Operating margin		9.0	%		11.5	%					(240) bps
Net earnings attributable to Skechers U.S.A., Inc.		372.9			346.9			26.0			7.5
Diluted earnings per share	$	2.46		$	2.24			0.22			9.8

About Skechers U.S.A., Inc.

Skechers (NYSE:SKX), 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 approximately 180 countries and territories through department and specialty stores, and direct to consumers through skechers.com and approximately 5,300 Skechers retail stores. A Fortune 500^® company, Skechers 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 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` delays or disruptions in our supply chain; international economic, political and market conditions including the effects of inflation, tariffs, and foreign currency exchange rate fluctuations around the world, the challenging consumer retail markets in the United States and the impact of wars, acts of war and other conflicts around the world; 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; the ability to complete our proposed merger (the "Merger"), on the proposed terms or on the anticipated timeline, or at all, including risks and uncertainties related to securing the necessary regulatory approvals and satisfaction of other closing conditions to consummate the proposed Merger; the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement relating to the proposed Merger; risks that the proposed Merger disrupts the Company's current plans and operations or diverts the attention of the Company's management or employees from ongoing business operations; the risk of potential difficulties with the Company's ability to retain and hire key personnel and maintain relationships with customers and other third parties as a result of the proposed Merger, including during the pendency of the Merger; the risk that the proposed Merger may involve unexpected costs and/or unknown or inestimable liabilities; the risk that the Company's business may suffer as a result of uncertainty surrounding the proposed Merger; the risk that stockholder litigation in connection with the proposed Merger may affect the timing or occurrence of the proposed Merger or result in significant costs of defense, indemnification and liability; effects relating to the announcement of the transaction or any further announcements or the consummation of the transaction on the market price of the Company's common stock; and other factors referenced or incorporated by reference in Skechers' annual report on Form 10-K for the year ended December 31, 2024 and its quarterly reports on Form 10-Q in 2025. Taking these and other risk factors 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. Skechers expressly disclaims any obligation to publicly release any updates or revisions to any forward-looking statements to reflect any change in Skechers' expectations or any change in events, conditions or circumstances on which any statement is based.

SKECHERS U.S.A., INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited)

	As of			As of
(in thousands)	June 30, 2025			December 31, 2024
ASSETS
Current assets
Cash and cash equivalents	$	1,377,152		$	1,116,516
Short-term investments		106,254			118,470
Trade accounts receivable, net		1,149,298			990,558
Other receivables		105,157			98,499
Inventory		1,871,805			1,919,386
Prepaid expenses and other		242,045			205,994
Total current assets		4,851,711			4,449,423
Property, plant and equipment, net		2,075,256			1,834,930
Operating lease right-of-use assets		1,536,161			1,363,596
Deferred tax assets		423,544			440,358
Long-term investments		157,452			146,687
Goodwill		103,945			94,494
Other assets, net		130,047			126,270
Total non-current assets		4,426,405			4,006,335
TOTAL ASSETS	$	9,278,116		$	8,455,758
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	1,159,891		$	1,241,838
Accrued expenses		356,295			330,251
Operating lease liabilities		303,370			297,926
Current installments of long-term borrowings		316,748			353,131
Short-term borrowings		179,633			33,338
Total current liabilities		2,315,937			2,256,484
Long-term operating lease liabilities		1,358,821			1,176,290
Long-term borrowings		87,965			68,450
Deferred tax liabilities		10,283			11,148
Other long-term liabilities		129,601			123,122
Total non-current liabilities		1,586,670			1,379,010
Total liabilities		3,902,607			3,635,494
Redeemable noncontrolling interest		102,374			90,099
Stockholders' equity
Preferred Stock		—			—
Class A Common Stock		131			130
Class B Common Stock		19			19
Additional paid-in capital		38,116			12,170
Accumulated other comprehensive loss		(71,989	)		(171,221	)
Retained earnings		4,809,135			4,436,201
Skechers U.S.A., Inc. equity		4,775,412			4,277,299
Noncontrolling interests		497,723			452,866
Total stockholders' equity		5,273,135			4,730,165
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS' EQUITY	$	9,278,116		$	8,455,758

SKECHERS U.S.A., INC. AND SUBSIDIARIES Condensed Consolidated Statements of Earnings (Unaudited)

	Three Months Ended June 30,					Six Months Ended June 30,
(in thousands, except per share data)	2025		2024			2025		2024
Sales	$	2,440,024	$	2,157,643		$	4,851,595	$	4,409,230
Cost of sales		1,138,721		973,206			2,295,918		2,043,159
Gross profit		1,301,303		1,184,437			2,555,677		2,366,071
Operating expenses
Selling		251,883		235,870			436,956		392,371
General and administrative		876,338		742,036			1,680,514		1,468,371
Total operating expenses		1,128,221		977,906			2,117,470		1,860,742
Earnings from operations		173,082		206,531			438,207		505,329
Other income (expense)		45,517		(1,652	)		70,047		(3,702	)
Earnings before income taxes		218,599		204,879			508,254		501,627
Income tax expense		35,894		40,355			100,477		96,725
Net earnings		182,705		164,524			407,777		404,902
Less: Net earnings attributable to noncontrolling interests and redeemable noncontrolling interest		12,207		24,222			34,843		57,978
Net earnings attributable to Skechers U.S.A., Inc.	$	170,498	$	140,302		$	372,934	$	346,924
Net earnings per share attributable to Skechers U.S.A., Inc.
Basic	$	1.14	$	0.92		$	2.49	$	2.27
Diluted	$	1.13	$	0.91		$	2.46	$	2.24
Weighted-average shares used in calculating net earnings per share attributable to Skechers U.S.A., Inc.
Basic		150,001		152,503			149,711		152,707
Diluted		151,305		154,176			151,395		154,640

SKECHERS U.S.A., INC. AND SUBSIDIARIES Supplemental Financial Information (Unaudited)

Segment Information

	Three Months Ended June 30,							Change
(in millions)	2025				2024			$		%
Wholesale sales		$	1,301.4		$	1,132.1			169.3		15.0
Cost of sales			763.0			635.2			127.9		20.1
Gross profit			538.4			496.9			41.4		8.3
Gross margin			41.4	%		43.9	%				(250) bps

Direct-to-Consumer sales		$	1,138.6		$	1,025.5			113.1		11.0
Cost of sales			375.7			338.0			37.6		11.1
Gross profit			762.9			687.5			75.5		11.0
Gross margin			67.0	%		67.0	%			0 bps

Total sales		$	2,440.0		$	2,157.6			282.4		13.1
Cost of sales			1,138.7			973.2			165.5		17.0
Gross profit			1,301.3			1,184.4			116.9		9.9
Gross margin			53.3	%		54.9	%				(160) bps

	Six Months Ended June 30,							Change
(in millions)	2025				2024			$		%
Wholesale sales		$	2,833.6		$	2,553.8			279.8		11.0
Cost of sales			1,620.1			1,420.7			199.3		14.0
Gross profit			1,213.5			1,133.1			80.5		7.1
Gross margin			42.8	%		44.4	%				(150) bps

Direct-to-Consumer sales		$	2,018.0		$	1,855.4			162.5		8.8
Cost of sales			675.8			622.4			53.5		8.6
Gross profit			1,342.2			1,233.0			109.1		8.8
Gross margin			66.5	%		66.5	%			0 bps

Total sales		$	4,851.6		$	4,409.2			442.4		10.0
Cost of sales			2,295.9			2,043.1			252.8		12.4
Gross profit			2,555.7			2,366.1			189.6		8.0
Gross margin			52.7	%		53.7	%				(100) bps

Additional Sales Information

	Three Months Ended June 30,					Change
(in millions)	2025			2024		$			%
Geographic sales
Domestic
Wholesale		$	413.3	$	446.9		(33.6	)		(7.5	)
Direct-to-Consumer			448.8		416.9		31.8			7.6
Total domestic sales			862.1		863.8		(1.8	)		(0.2	)

International
Wholesale			888.1		685.2		202.9			29.6
Direct-to-Consumer			689.8		608.6		81.2			13.3
Total international sales			1,577.9		1,293.8		284.2			22.0

Total sales		$	2,440.0	$	2,157.6		282.4			13.1

Regional sales
Americas (AMER)		$	1,113.0	$	1,100.9		12.1			1.1
Europe, Middle East & Africa (EMEA)			731.5		492.5		239.0			48.5
Asia Pacific (APAC)			595.5		564.2		31.3			5.5
Total sales		$	2,440.0	$	2,157.6		282.4			13.1

China sales		$	287.2	$	312.7		(25.6	)		(8.2	)

Distributor sales		$	136.1	$	112.8		23.3			20.6

	Six Months Ended June 30,					Change
(in millions)	2025			2024		$			%
Geographic sales
Domestic
Wholesale		$	909.5	$	922.9		(13.4	)		(1.5	)
Direct-to-Consumer			806.3		739.7		66.5			9.0
Total domestic sales			1,715.8		1,662.6		53.1			3.2

International
Wholesale			1,924.1		1,630.9		293.2			18.0
Direct-to-Consumer			1,211.7		1,115.7		96.0			8.6
Total international sales			3,135.8		2,746.6		389.3			14.2

Total sales		$	4,851.6	$	4,409.2		442.4			10.0

Regional sales
Americas (AMER)		$	2,217.4	$	2,120.4		97.0			4.6
Europe, Middle East & Africa (EMEA)			1,449.7		1,120.2		329.6			29.4
Asia Pacific (APAC)			1,184.5		1,168.6		15.8			1.4
Total sales		$	4,851.6	$	4,409.2		442.4			10.0

China sales		$	555.8	$	632.3		(76.4	)		(12.1	)

Distributor sales		$	272.1	$	238.7		33.3			14.0

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. Other companies that provide similar non-GAAP measures may calculate them differently than we do, and the definitions may not be the same as the definitions we use.

	Three Months Ended June 30,
	2025								2024			Change
(in millions, except per share data)	Reported GAAP Measure		Constant Currency Adjustment			Adjusted for Non-GAAP Measures			Reported GAAP Measure			$			%
Sales	$	2,440.0	$	(33.9	)	$	2,406.1		$	2,157.6		$	248.5			11.5
Cost of sales		1,138.7		(23.4	)		1,115.3			973.2			142.1			14.6
Gross profit		1,301.3		(10.5	)		1,290.8			1,184.4			106.4			9.0
Operating expenses		1,128.2		(14.4	)		1,113.9			977.9			136.0			13.9
Earnings from operations		173.1		3.8			176.9			206.5			(29.6	)		(14.3	)
Other income (expense)		45.5		(48.6	)		(3.1	)		(1.6	)		(1.4	)	n/m
Income tax expense (benefit)		35.9		(0.7	)		35.2			40.4			(5.1	)		(12.7	)
Less: Noncontrolling interests and redeemable noncontrolling interest		12.2		0.1			12.3			24.2			(11.9	)		(49.3	)
Net earnings attributable to Skechers U.S.A., Inc.	$	170.5	$	(44.2	)	$	126.3		$	140.3		$	(14.0	)		(10.0	)
Diluted earnings per share	$	1.13	$	(0.30	)	$	0.83		$	0.91		$	(0.08	)		(8.8	)

	Six Months Ended June 30,
	2025								2024			Change
(in millions, except per share data)	Reported GAAP Measure		Constant Currency Adjustment			Adjusted for Non-GAAP Measures			Reported GAAP Measure			$			%
Sales	$	4,851.6	$	9.6		$	4,861.2		$	4,409.2		$	451.9			10.3
Cost of sales		2,295.9		2.9			2,298.8			2,043.1			255.6			12.5
Gross profit		2,555.7		6.7			2,562.4			2,366.1			196.3			8.3
Operating expenses		2,117.5		0.2			2,117.6			1,860.7			256.9			13.8
Earnings from operations		438.2		6.7			444.9			505.3			(60.4	)		(12.0	)
Other income (expense)		70.0		(75.3	)		(5.3	)		(3.7	)		(1.6	)	n/m
Income tax expense (benefit)		100.5		(0.6	)		99.8			96.7			3.1			3.2
Less: Noncontrolling interests and redeemable noncontrolling interest		34.8		0.7			35.5			58.0			(22.5	)		(38.8	)
Net earnings attributable to Skechers U.S.A., Inc.	$	372.9	$	(68.7	)	$	304.2		$	346.9		$	(42.7	)		(12.3	)
Diluted earnings per share	$	2.46	$	(0.45	)	$	2.01		$	2.24		$	(0.23	)		(10.3	)

___________________________

Note: Amounts may not foot due to rounding.

n/m: not meaningful.

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Investor Relations

Sonia Reback

Eunice Han

investors@skechers.com

Press

Jennifer Clay

jennc@skechers.com

Skechers Announces Second Quarter 2025 Financial Results