Skechers U.S.A., Inc.

Skechers reported first-quarter 2025 revenue of $2.41 billion, up 7.1% year over year, or $2.46 billion on a constant-currency basis, up 9%. EPS was $1.34 per diluted share, essentially flat year over year, on 151.5 million weighted average diluted shares. Gross margin was 52%, down 50 basis points year over year; operating margin was 11% versus 13.3% last year; earnings from operations were $265.1 million, down 11%; and the effective tax rate was 22.3% versus 19% last year. The company did not provide revenue or earnings guidance, saying the current environment is too dynamic; it said Q2 and Q3 should see the most acute tariff impacts if current conditions persist, with some ability to resolve starting in Q4.

David Weinberg framed the quarter as proof that Skechers’ comfort and innovation-led product mix continues to resonate globally, calling Q1 a new sales record. He emphasized that international is the company’s primary growth engine, noted 65% of the business is outside the U.S., and said the company is investing in stores, distribution, and product technologies to support long-term growth. His tone was confident but cautious, repeatedly stressing flexibility and the need to navigate a volatile macro and trade backdrop.

John Vandemore highlighted strong worldwide demand and said the quarter was in line with expectations, but he spent most of his remarks on tariffs and planning uncertainty. He said the company is using three main levers—cost-sharing with vendors, sourcing optimization, and price adjustments—and noted an effective tariff rate of about 59% on China-to-U.S. goods is a major challenge. On the balance sheet, he cited $1.24 billion in cash, cash equivalents and investments, $1.85 billion of liquidity including the revolver, inventories of $1.77 billion (up 30% year over year but down 7.6% sequentially), and capex of $147.1 million, including $68.9 million for distribution infrastructure.

Analysts focused heavily on tariffs, sourcing exposure to China, and how quickly Skechers could shift production or raise prices. Management said it would not give sourcing-by-destination percentages, but acknowledged it is working to minimize U.S.-bound production from high-cost locations, with kids footwear particularly hard to move because most of it currently comes from China. On demand and China, management said U.S. consumer behavior has become more uncertain, China remains modest in the back half of the year, and the company has not seen evidence of anti-Americanism; it also said April trends have been broadly consistent with late Q1 rather than materially worse.