Skechers’s Q1 Earnings Call: Our Top 5 Analyst Questions

Skechers’ first quarter results were met with a negative market reaction, following a modest revenue shortfall versus Wall Street expectations despite year-on-year sales growth. Management attributed this outcome to robust demand for its comfort-focused footwear in most regions, but highlighted persistent challenges in China due to macroeconomic pressures. Chief Operating Officer David Weinberg noted that, excluding China, Asia Pacific sales grew 12%, and emphasized strong direct-to-consumer performance in the U.S. and Europe. Chief Financial Officer John Vandemore added that higher promotional activity in select markets, along with elevated distribution and labor costs, weighed on operating margins.

Is now the time to buy SKX? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Skechers’s Q1 Earnings Call

• Jay Sole (UBS) asked about the company’s ability to reduce U.S. exposure to China-sourced production amid higher tariffs. CFO John Vandemore reiterated ongoing use of sourcing flexibility and vendor partnerships but declined to give specific percentages or timelines.

• Laurent Vasilescu (BNP Paribas) pressed for clarity on market volatility and which regions are most affected. Vandemore highlighted the U.S. and China as areas of greatest uncertainty, while noting continued strength in Europe and Asia Pacific outside China.

• Peter McGoldrick (Stifel) inquired about the company’s willingness to raise prices and whether this could be applied outside the U.S. Vandemore explained that price increases are a last resort and would be communicated carefully to consumers, tailored by region.

• Adrienne Yih-Tennant (Barclays) questioned the feasibility and speed of shifting sourcing away from China, especially for kids’ footwear. Vandemore said all options are being considered, with kids’ products presenting unique challenges due to manufacturing specialization.

• John Keeman (TD Cowen) sought details on direct-to-consumer growth targets and the pace of new store openings. Management emphasized international store expansion based on localized profitability analyses, with ongoing evaluation of the macroeconomic environment.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will watch (1) the pace and effectiveness of Skechers’ tariff mitigation efforts and pricing strategies in the U.S., (2) whether international markets can sustain double-digit growth despite global economic uncertainty, and (3) signs of stabilization or recovery in China. Progress on direct-to-consumer expansion and the impact of new product launches will also be important indicators of execution.

Skechers currently trades at $62.32, up from $50.44 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

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