Skechers Analysis
Q1 2025 Results
Released: April 24, 2025For the quarter ended March 31, 2025
Net Sales
$ 2.4B(ZAR 44.6B)
+7.1% YoY
Gross Margin
52.0%-50 bps YoY
Diluted EPS
$ 1.3-2.0% YoY
Quarterly Revenue Trend
Regional Growth (YoY)
International sales: 65% of total revenue
Sales Channel Distribution
Wholesale growth: +7.8% YoY | DTC growth: +6.0% YoY
Additional Highlights
- Operating Income: $ 265.1M, down 11.3% YoY
- Net Earnings: $ 202.4M, slightly below prior year's $ 206.6M
- Global Store Count: 5,318 locations, adding 26 net new stores
- 2025 Guidance: Withdrawn due to macroeconomic uncertainty related to global trade policies
3G Capital Acquisition
Announced: May 2025Landmark $9.42 Billion Deal
Acquisition Price
$ 9.4B
Largest footwear industry buyout
Per Share Price
$ 63
28-30% premium
Expected Closing
Q3 2025
Pending approvals
Acquisition Details
Skechers has agreed to be acquired by investment firm 3G Capital in a $9.42 billion deal that will take the company private. The transaction has been unanimously approved by Skechers' board and will result in the company's delisting from the New York Stock Exchange upon completion.
- Leadership Continuity: Current leadership, including Chairman and CEO Robert Greenberg, will remain in place
- Headquarters: Will continue to operate from Manhattan Beach, California
- Strategic Rationale: Greater flexibility to navigate global trade uncertainties and pursue long-term growth without public market scrutiny
- Market Reaction: Stock surged by 25% following the announcement
Current Challenges
- Foot Traffic: 3% decline in foot traffic in Q1 2025
- In-Store Sales: Nearly 3% drop in in-store sales
- Customer Demographics: Older customer cohorts (Gen X and Boomers) visiting less frequently
- Macroeconomic Pressures: Including tariffs on imports from China