Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 26, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Title of 12(b) Security | Class A Common Stock, par value $0.001 per share | |
Trading Symbol | SKX | |
Security Exchange Name | NYSE | |
Entity Registrant Name | SKECHERS USA INC | |
Entity Central Index Key | 0001065837 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity File Number | 001-14429 | |
Entity Tax Identification Number | 95-4376145 | |
Entity Address, Address Line One | 228 Manhattan Beach Blvd. | |
Entity Address, City or Town | Manhattan Beach | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90266 | |
City Area Code | 310 | |
Local Phone Number | 318-3100 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 132,395,249 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 20,121,358 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 1,020,458 | $ 1,189,910 |
Short-term investments | 88,564 | 72,595 |
Trade accounts receivable, less allowances of $57,021 and $57,867 | 1,158,384 | 860,300 |
Other receivables | 76,632 | 82,253 |
Inventory | 1,360,630 | 1,525,409 |
Prepaid expenses and other | 225,726 | 222,137 |
Total current assets ($1,273,167 and $1,252,372 related to VIEs) | 3,930,394 | 3,952,604 |
Property, plant and equipment, net | 1,519,463 | 1,506,690 |
Operating lease right-of-use assets | 1,298,349 | 1,276,171 |
Deferred tax assets | 447,085 | 450,574 |
Long-term investments | 143,503 | 123,996 |
Goodwill | 101,230 | 101,230 |
Other assets, net | 127,416 | 136,086 |
Total non-current assets ($642,570 and $641,879 related to VIEs) | 3,637,046 | 3,594,747 |
TOTAL ASSETS | 7,567,440 | 7,547,351 |
Current liabilities | ||
Accounts payable | 828,824 | 1,008,001 |
Accrued expenses | 302,213 | 320,105 |
Operating lease liabilities | 277,733 | 274,296 |
Current installments of long-term borrowings | 233,756 | 46,571 |
Short-term borrowings | 0 | 11,894 |
Total current liabilities ($690,370 and $600,337 related to VIEs) | 1,642,526 | 1,660,867 |
Long-term operating lease liabilities | 1,122,157 | 1,108,110 |
Long-term borrowings | 112,536 | 242,944 |
Deferred tax liabilities | 12,167 | 12,594 |
Other long-term liabilities | 124,363 | 122,794 |
Total non-current liabilities ($201,013 and $329,219 related to VIEs) | 1,371,223 | 1,486,442 |
Total liabilities | 3,013,749 | 3,147,309 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity | ||
Preferred Stock, $0.001 par value; 10,000 shares authorized; none issued and outstanding | 0 | 0 |
Additional paid-in capital | 228,594 | 295,847 |
Accumulated other comprehensive loss | (86,020) | (73,388) |
Retained earnings | 4,003,352 | 3,796,730 |
Skechers U.S.A., Inc. equity | 4,146,078 | 4,019,342 |
Noncontrolling interests | 407,613 | 380,700 |
Total stockholders' equity | 4,553,691 | 4,400,042 |
TOTAL LIABILITIES AND EQUITY | 7,567,440 | 7,547,351 |
Class A Common Stock [Member] | ||
Stockholders’ equity | ||
Common Stock | 132 | 133 |
Class B Common Stock [Member] | ||
Stockholders’ equity | ||
Common Stock | $ 20 | $ 20 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Trade accounts receivable, allowances | $ 57,021 | $ 57,867 |
Assets, Current | 3,930,394 | 3,952,604 |
Assets, Noncurrent | 3,637,046 | 3,594,747 |
Liabilities, Current | 1,642,526 | 1,660,867 |
Liabilities, Noncurrent | $ 1,371,223 | $ 1,486,442 |
Preferred Stock, par value | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Variable interest entity, primary beneficiary [Member] | ||
Assets, Current | $ 1,273,167 | $ 1,252,372 |
Assets, Noncurrent | 642,570 | 641,879 |
Liabilities, Current | 690,370 | 600,337 |
Liabilities, Noncurrent | $ 201,013 | $ 329,219 |
Class A Common Stock [Member] | ||
Common Stock, par value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 500,000,000 | 500,000,000 |
Common Stock, shares issued | 132,333,000 | 132,837,000 |
Common Stock, shares outstanding | 132,333,000 | 132,837,000 |
Class B Common Stock [Member] | ||
Common Stock, par value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 75,000,000 | 75,000,000 |
Common Stock, shares issued | 20,182,000 | 20,182,000 |
Common Stock, shares outstanding | 20,182,000 | 20,182,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Sales | $ 2,251,587 | $ 2,001,928 |
Cost of sales | 1,069,953 | 1,023,349 |
Gross profit | 1,181,634 | 978,579 |
Operating expenses | ||
Selling | 156,501 | 128,560 |
General and administrative | 726,335 | 626,442 |
Total operating expenses | 882,836 | 755,002 |
Earnings from operations | 298,798 | 223,577 |
Other (expense) income | (2,050) | 9,923 |
Earnings before income taxes | 296,748 | 233,500 |
Income tax expense | 56,370 | 43,216 |
Net earnings | 240,378 | 190,284 |
Less: Net earnings attributable to noncontrolling interests | 33,756 | 29,841 |
Net earnings attributable to Skechers U.S.A., Inc. | $ 206,622 | $ 160,443 |
Net earnings per share attributable to Skechers U.S.A., Inc. | ||
Basic | $ 1.35 | $ 1.03 |
Diluted | $ 1.33 | $ 1.02 |
Weighted-average shares used in calculating net earnings per share attributable to Skechers U.S.A., Inc. | ||
Basic | 152,918 | 155,140 |
Diluted | 155,119 | 156,755 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 240,378 | $ 190,284 |
Other comprehensive income, net of tax | ||
Net unrealized loss on derivative contract | (639) | (1,416) |
(Loss) gain on foreign currency translation adjustment | (18,436) | 6,851 |
Comprehensive income | 221,303 | 195,719 |
Less: Comprehensive income attributable to noncontrolling interests | 27,313 | 30,596 |
Comprehensive income attributable to Skechers U.S.A., Inc. | $ 193,990 | $ 165,123 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Class A Common Stock [Member] | Class B Common Stock [Member] | Common Stock [Member] Class A Common Stock [Member] | Common Stock [Member] Class B Common Stock [Member] | Additional Paid-in-Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Skechers U.S.A., Inc. Equity [Member] | Noncontrolling Interests [Member] |
Beginning Balance at Dec. 31, 2022 | $ 3,871,586 | $ 134 | $ 21 | $ 403,799 | $ (84,897) | $ 3,250,931 | $ 3,569,988 | $ 301,598 | ||
Beginning Balance, Shares at Dec. 31, 2022 | 134,473,000 | 20,810,000 | ||||||||
Net earnings | 190,284 | 160,443 | 160,443 | 29,841 | ||||||
Foreign currency translation adjustment | 6,851 | 4,680 | 4,680 | 2,171 | ||||||
Distributions to noncontrolling interests | (750) | (750) | ||||||||
Net unrealized loss on derivative contract | (1,416) | (1,416) | ||||||||
Stock compensation expense | 14,252 | 14,252 | 14,252 | |||||||
Shares issued under the incentive award plan, Shares | 225,000 | |||||||||
Shares redeemed for employee tax withholdings | (4,498) | (4,498) | (4,498) | |||||||
Shares redeemed for employee tax withholdings, Shares | (99,000) | |||||||||
Repurchases of common stock | $ (30,014) | $ (1) | (30,013) | (30,014) | ||||||
Repurchases of common stock, Shares | (676,190) | (676,000) | ||||||||
Conversion of Class B Common Stock into Class A Common Stock | $ 1 | $ (1) | ||||||||
Conversion of Class B Common Stock into Class A Common Stock, Shares | 336,000 | (336,000) | ||||||||
Ending Balance at Mar. 31, 2023 | $ 4,046,295 | $ 134 | $ 20 | 383,540 | (80,217) | 3,411,374 | 3,714,851 | 331,444 | ||
Ending Balance, Shares at Mar. 31, 2023 | 134,259,000 | 20,474,000 | ||||||||
Beginning Balance at Dec. 31, 2023 | 4,400,042 | $ 133 | $ 20 | 295,847 | (73,388) | 3,796,730 | 4,019,342 | 380,700 | ||
Beginning Balance, Shares at Dec. 31, 2023 | 132,837,000 | 20,182,000 | 132,837,000 | 20,182,000 | ||||||
Net earnings | 240,378 | 206,622 | 206,622 | 33,756 | ||||||
Foreign currency translation adjustment | (18,436) | (12,632) | (12,632) | (5,804) | ||||||
Distributions to noncontrolling interests | (400) | (400) | ||||||||
Net unrealized loss on derivative contract | (639) | (639) | ||||||||
Stock compensation expense | 20,693 | 20,693 | 20,693 | |||||||
Shares issued under the incentive award plan | $ 1 | (1) | ||||||||
Shares issued under the incentive award plan, Shares | 960,000 | |||||||||
Shares redeemed for employee tax withholdings | (27,927) | $ (1) | (27,926) | (27,927) | ||||||
Shares redeemed for employee tax withholdings, Shares | (470,000) | |||||||||
Repurchases of common stock | $ (60,020) | $ (1) | (60,019) | (60,020) | ||||||
Repurchases of common stock, Shares | (994,215) | (994,000) | ||||||||
Ending Balance at Mar. 31, 2024 | $ 4,553,691 | $ 132 | $ 20 | $ 228,594 | $ (86,020) | $ 4,003,352 | $ 4,146,078 | $ 407,613 | ||
Ending Balance, Shares at Mar. 31, 2024 | 132,333,000 | 20,182,000 | 132,333,000 | 20,182,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities | ||
Net earnings | $ 240,378 | $ 190,284 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 49,325 | 41,424 |
Provision for bad debts and returns | 12,749 | 9,792 |
Stock compensation | 20,693 | 14,252 |
Deferred income taxes | 3,648 | (6,146) |
Net foreign currency adjustments | 4,929 | (9,605) |
Changes in operating assets and liabilities | ||
Receivables | (322,773) | (185,430) |
Inventory | 147,535 | 325,478 |
Other assets | (37,635) | (76,533) |
Accounts payable | (162,862) | (70,945) |
Other liabilities | 6,407 | 2,549 |
Net cash provided by (used in) operating activities | (37,606) | 235,120 |
Cash flows from investing activities | ||
Capital expenditures | (57,087) | (71,213) |
Purchases of investments | (65,065) | (37,942) |
Proceeds from sales and maturities of investments | 29,589 | 40,356 |
Net cash used in investing activities | (92,563) | (68,799) |
Cash flows from financing activities | ||
Repayments on long-term borrowings | (904) | (3,875) |
Proceeds from long-term borrowings | 57,679 | 14,947 |
Net (repayments on) proceeds from short-term borrowings | (11,894) | 10,836 |
Payments for employee taxes related to stock compensation | (27,927) | (4,498) |
Repurchases of common stock | (60,020) | (30,014) |
Distributions to noncontrolling interests | (400) | (750) |
Net cash used in financing activities | (43,466) | (13,354) |
Effect of exchange rate changes on cash and cash equivalents | 4,183 | (8,660) |
Net change in cash and cash equivalents | (169,452) | 144,307 |
Cash and cash equivalents at beginning of the period | 1,189,910 | 615,733 |
Cash and cash equivalents at end of the period | 1,020,458 | 760,040 |
Cash paid during the period for | ||
Interest | 4,630 | 4,910 |
Income taxes, net | 28,295 | 25,687 |
Non-cash transactions | ||
Right-of-use assets exchanged for lease liabilities | $ 105,285 | $ 86,643 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 206,622 | $ 160,443 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
General
General | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
General | (1) General Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Skechers U.S.A., Inc. (the “Company”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”), for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S‑X. In the opinion of management, all normal adjustments and accruals considered necessary to provide a fair statement of the results of operations for the interim periods presented have been included. The December 31, 2023 balance sheet data was derived from audited financial statements; however, the accompanying notes to condensed consolidated financial statements do not include all of the annual disclosures required under GAAP and should be read in conjunction with the Company’s 2023 Annual Report on Form 10-K. Noncontrolling Interests The Company has equity interests in several joint ventures that were established either to exclusively distribute the Company’s products throughout Mexico, Asia and the Middle East or to construct the Company’s domestic distribution facility. These joint ventures are variable interest entities (“VIE”), and the Company is considered the primary beneficiary. This determination is based on the relationships between the Company and the VIE, including management agreements, governance documents and other contractual arrangements. Specifically, the Company has both of the following characteristics: (a) the power to direct the activities of the entity that most significantly impact the entity’s economic performance; and (b) the obligation to absorb losses of the entity that could potentially be significant to the VIE, or the right to receive benefits from the entity that could potentially be significant to the VIE. The assets and liabilities and results of operations of these entities are included in the Company’s condensed consolidated financial statements, even though the Company may not hold a majority equity interest. The Company continues to reassess these relationships quarterly. The assets of these joint ventures are restricted, as they are not available for general business use outside the context of such joint ventures. The holders of the liabilities of each joint venture have no recourse to the Company. FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value hierarchy as defined by applicable accounting standards prioritizes the use of inputs used in valuation techniques into the following three levels: • Level 1: Quoted market prices in active markets for identical assets or liabilities. • Level 2: Other observable market-based inputs or unobservable inputs that are corroborated by market data. • Level 3: Unobservable inputs that cannot be corroborated by market data that reflect the reporting entity’s own assumptions. The Company’s Level 1 investments primarily include money market funds, United States (“U.S.”) Treasury securities and actively traded mutual funds; Level 2 investments primarily include corporate notes and bonds, asset-backed securities and U.S. Agency securities; and the Company does not currently have any Level 3 assets or liabilities. The Company has one Level 2 derivative instrument which is an interest rate swap (see Note 4 – Financial Commitments) classified as prepaid expenses and other at March 31, 2024 and as other assets, net at December 31, 2023. The fair value of the interest rate swap was determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipt was based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. Credit valuation adjustments were incorporated to appropriately reflect both the Company’s nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. The carrying amount of receivables, payables and other amounts arising out of the normal course of business approximates fair value because of the relatively short maturity of such instruments. The carrying amount of the Company’s short-term and long-term borrowings, which are considered Level 2 liabilities, approximates fair value based on current rates and terms available to the Company for similar debt. DERIVATIVE INSTRUMENTS The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage exposure to interest rate movements . To accomplish this objective, the Company uses an interest rate swap as part of its interest rate risk management strategy. The Company’s interest rate swap, designated as a cash flow hedge, involves the receipt of variable amounts from a counterparty in exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. By utilizing an interest rate swap, the Company is exposed to credit-related losses in the event that the counterparty fails to perform under the terms of the derivative contract. To mitigate this risk, the Company enters into derivative contracts with major financial institutions based upon credit ratings and other factors. The Company continually assesses the creditworthiness of its counterparties. As of March 31, 2024 , all counterparties to the interest rate swap had performed in accordance with their contractual obligations. RECENT ACCOUNTING PRONOUNCEMENTS In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. Among other new disclosure requirements, ASU 2023-07 requires companies to disclose significant segment expenses that are regularly provided to the chief operating decision maker. ASU 2023-07 will be effective for annual periods beginning on January 1, 2024 and interim periods beginning on January 1, 2025. ASU 2023-07 must be applied retrospectively to all prior periods presented in the financial statements. We are currently evaluating the disclosure impact of ASU 2023-07. In December 2023, the FASB issued ASU No. 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires companies to disclose, on an annual basis, specific categories in the effective tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. In addition, ASU 2023-09 requires companies to disclose additional information about income taxes paid. ASU 2023-09 will be effective for annual periods beginning January 1, 2025 and will be applied on a prospective basis with the option to apply the standard retrospectively. We are currently evaluating the disclosure impact of ASU 2023-09. RecentLY ADOPTED Accounting Pronouncements In March 2023, the FASB issued ASU 2023-01 Leases (Topic 842): Common Control Arrangements , which requires all lessees to amortize leasehold improvements associated wit h common control leases over their useful life to the common control group. The Company adopted ASU 2023-01 on January 1, 2024, and the adoption of this ASU did not have a material impact on its condensed consolidated financial statements. |
Cash, Cash Equivalents, Short-T
Cash, Cash Equivalents, Short-Term And Long-Term Investments | 3 Months Ended |
Mar. 31, 2024 | |
Cash Cash Equivalents And Short Term And Long Term Investments [Abstract] | |
Cash, Cash Equivalents, Short-Term and Long-Term Investments | (2) Cash, Cash Equivalents, Short-term and Long-term Investments The following tables show the Company’s cash, cash equivalents, short-term and long-term investments by significant investment category: As of March 31, 2024 (in thousands) Adjusted Cost Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 989,632 $ 989,632 $ 989,632 $ — $ — Level 1 Money market funds 12,646 12,646 12,646 — — U.S. Treasury securities 19,301 19,301 4,997 12,833 1,471 Mutual funds N/A 6,391 — — 6,391 Total level 1 31,947 38,338 17,643 12,833 7,862 Level 2 Corporate notes and bonds 121,604 121,604 13,183 57,864 50,557 Asset-backed securities 19,853 19,853 — 1,199 18,654 U.S. Agency securities 23,506 23,506 — 16,668 6,838 Total level 2 164,963 164,963 13,183 75,731 76,049 Total $ 1,186,542 $ 1,192,933 $ 1,020,458 $ 88,564 $ 83,911 As of December 31, 2023 (in thousands) Adjusted Cost Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 972,278 $ 972,278 $ 972,278 $ — $ — Level 1 Money market funds 176,317 176,317 176,317 — — U.S. Treasury securities 39,769 39,769 29,942 9,827 — Mutual funds N/A 8,535 — — 8,535 Total level 1 216,086 224,621 206,259 9,827 8,535 Level 2 Corporate notes and bonds 97,795 97,795 9,374 50,949 37,472 Asset-backed securities 11,159 11,159 — — 11,159 U.S. Agency securities 27,269 27,269 1,999 11,819 13,451 Total level 2 136,223 136,223 11,373 62,768 62,082 Total $ 1,324,587 $ 1,333,122 $ 1,189,910 $ 72,595 $ 70,617 The Company’s investments consist of U.S. Treasury securities, corporate notes and bonds, asset-backed securities and U.S. agency securities, which the Company has the intent and ability to hold to maturity and therefore are classified as held-to-maturity. The Company holds mutual funds in its deferred compensation plan which are classified as trading securities. The Company may sell certain of its investments prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and duration management. The maturities of the Company’s long-term investments are less than two years . The Company minimizes the potential risk of principal loss by investing in highly-rated securities and limiting the amount of credit exposure to any one issuer. Fair values were determined for each individual security in the investment portfolio. Included in long-term investments on the Condensed Consolidated Balance Sheets are company owned life insurance contracts of $ 59.6 million and $ 53.4 million at March 31, 2024 and December 31, 2023. Interest income was $ 8.5 million and $ 2.6 million for three months ended March 31, 2024 and 2023. When evaluating an investment for its current expected credit losses, the Company reviews factors such as historical experience with defaults, losses, credit ratings, term and macroeconomic trends, including current conditions and forecasts to the extent they are reasonable and supportable. |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | (3) Accrued Expenses Accrued expenses were as follows: As of As of (in thousands) March 31, 2024 December 31, 2023 Accrued payroll, taxes, and other $ 177,694 $ 166,132 Return reserve liability 90,038 80,968 Accrued inventory purchases 34,481 73,005 Accrued expenses $ 302,213 $ 320,105 |
Financial Commitments
Financial Commitments | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Financial Commitments | (4) Financial Commitments The Company had $ 32.4 million and $ 32.5 million letters of credit at March 31, 2024 and December 31, 2023, and $ 11.9 million in short-term borrowings at December 31, 2023. Interest expense was $ 4.7 million and $ 5.1 million for the three months ended March 31, 2024 and 2023. Long-term borrowings were as follows: As of As of (in thousands) March 31, 2024 December 31, 2023 HF-T1 Distribution Center Loan $ 129,505 $ 129,505 HF-T2 Distribution Center Construction Loan 73,017 73,017 China Distribution Center Expansion Construction Loan 39,496 40,330 China Operational Loans 103,908 46,228 Other 366 435 Subtotal 346,292 289,515 Less: Current installments 233,756 46,571 Total long-term borrowings $ 112,536 $ 242,944 Revolving Credit Facility The Company maintains a revolving credit facility which allows for a senior unsecured credit facility of $ 750.0 million, which may be increased by up to $ 250.0 million under certain conditions and provides for the issuance of letters of credit up to a maximum of $ 100.0 million and swingline loans up to a maximum of $ 50.0 million. The expiration date is December 15, 2026 . At March 31, 2024 and December 31, 2023, there was no outstanding balance under the revolving credit facility. The unused credit capacity was $ 746.9 million at March 31, 2024 and December 31, 2023 . The Company is required to maintain a maximum total adjusted net leverage ratio of 3.75 :1, except in the event of an acquisition in which case the ratio may be increased at the Company’s election to 4.25 :1 for the quarter in which such acquisition occurs and for the next three quarters thereafter. The Company was in compliance with the financial covenants at March 31, 2024 . Additionally, the Company maintains various credit facilities within our international market with an aggregate capacity of approximately $ 117.3 million that is available for working capital needs and issuance of letters of credit. At March 31, 2024, there were no borrowings outstanding under these credit facilities. At December 31, 2023, we had $ 11.9 million of borrowings outstanding under these credit facilities included in short-term borrowings. HF-T1 Distribution Center Loan To finance construction and improvements to the Company’s North American distribution center, the Company’s joint venture with HF Logistics I, LLC (“HF”), HF Logistics-SKX, LLC (the “JV”), through a wholly-owned subsidiary of the JV (“HF-T1”), entered into a $ 129.5 million construction loan agreement which matures on March 18, 2025 (the “HF-T1 2020 Loan”) with interest of SOFR Daily Floating Rate plus a margin of 1.75 % per annum. HF-T1 also entered into an ISDA master agreement (together with the schedule related thereto, the “Swap Agreement”) with Bank of America, N.A. to govern derivative and/or hedging transactions that HF-T1 concurrently entered into with Bank of America, N.A. Pursuant to the Swap Agreement, on August 14, 2015 , HF-T1 entered into a confirmation of swap transactions (the “Interest Rate Swap”) as amended (the “Swap Agreement Amendment”) on March 18, 2020 with Bank of America, N.A. with a maturity date of March 18, 2025 . The Swap Agreement Amendment fixes the effective interest rate on the HF-T1 2020 Loan at 2.55 % per annum. The HF-T1 2020 Loan and Swap Agreement Amendment are subject to customary covenants and events of default. Bank of America, N.A. also acts as a lender and syndication agent under the Company’s revolving credit facility. The obligations of the JV under this loan are guaranteed by HF. The Interest Rate Swap involves the receipt of variable amounts from a counterparty in exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. At March 31, 2024 and December 31, 2023 , the Interest Rate Swap had an aggregate notional amount of $ 129.5 million. Under the terms of the Swap Agreement Amendment, the Company will pay a weighted-average fixed rate of 0.778 % on the notional amount and receive payments from the counterparty based on the 30-day SOFR rate, effectively modifying the Company’s exposure to interest rate risk by converting floating-rate debt to a fixed rate of 2.63 %. At March 31, 2024, the outstanding balance under the HF-T1 2020 Loan is classified as current installments of long-term borrowings. HF-T2 Distribution Center Construction Loan On April 3, 2020, the JV, through HF Logistics-SKX T2, LLC, a wholly-owned subsidiary of the JV (“HF-T2”), entered into a construction loan agreement of up to $ 73.0 million with Bank of America, N.A. to expand the North American distribution center. The maturity date is April 3, 2025 . The interest rate is based on the Bloomberg Short-Term Bank Yield Index Daily Floating Rate plus a margin of 190 basis points, reducing to 175 basis points upon substantial completion of the construction and certain other conditions being satisfied. The weighted-average annual interest rate on borrowings was 7.12 % during the three months ended March 31, 2024. The obligations of the JV under this loan are guaranteed by TGD Holdings I, LLC, which is an affiliate of HF. China Distribution Center Expansion Construction Loan On October 18, 2022, the Company entered into a loan agreement for 1.1 billion yuan with Bank of China Co., Ltd to finance the construction of its distribution center expansion in China. Interest is paid quarterly. The interest rate at March 31, 2024 was 3.3 % and may increase or decrease over the life of the loan, and will be evaluated every 12 months. This loan matures 10 years from the initial receipt of funds. Beginning in 2026, the principal of the loan will be repaid in semi-annual installments of variable amounts. The obligations of this loan entered through the Company’s Taicang Subsidiary are jointly and severally guaranteed by the Company’s China joint venture. China Operational Loans The Company has certain secured credit facilities to support the operations of its China joint venture. The interest rate was 2.60 % per annum at March 31, 2024 and had interest rates ranging from 2.75 % to 2.90 % per annum at December 31, 2023 . The outstanding balances under these working capital loans are classified as current installments of long-term borrowings. |
Stockholders Equity and Stock C
Stockholders Equity and Stock Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders Equity and Stock Compensation | (5) Stockholders Equity and Stock Compensation SHARE REPURCHASE PROGRAM On January 31, 2022, the Company’s Board of Directors authorized a share repurchase program (the “Share Repurchase Program”), pursuant to which the Company may, from time to time, purchase shares of its Class A common stock, for an aggregate repurchase price not to exceed $ 500 million. The Share Repurchase Program expires on January 31, 2025 and does not obligate the Company to acquire any particular amount of shares. At March 31, 2024, there was $ 205.7 million remaining to repurchase shares under the Share Repurchase Program. The following table provides a summary the Company’s stock repurchase activities: Three Months Ended March 31, 2024 2023 Shares repurchased 994,215 676,190 Average cost per share $ 60.37 $ 44.39 Total cost of shares repurchased (in thousands) $ 60,020 $ 30,014 INCENTIVE AWARD PLAN In the three months ended March 31, 2024 , the Company granted restricted stock with time-based vesting as well as performance-based awards. The performance-based awards include a market condition tied to the Company’s total shareholder return (“TSR”) in relation to its peer companies as well as a financial performance condition tied to annual earnings per share (“EPS”) growth. The vesting and ultimate payout of performance awards is determined at the end of the three-year performance period and can vary from zero to 200 % based on actual results. At March 31, 2024, there were 5,457,960 shares available for grant as equity awards under the 2023 Incentive Award Plan if target levels are achieved for performance-based awards and 4,873,510 if maximum levels are achieved. The Company issued the following stock-based instruments: Three Months Ended March 31, 2024 2023 Granted Weighted-Average Grant-Date Fair Value Granted Weighted-Average Grant-Date Fair Value Restricted stock 1,136,710 $ 58.56 300,970 $ 43.77 Performance-based restricted stock 93,500 $ 60.64 121,225 $ 43.34 Market-based restricted stock 93,500 $ 78.80 121,225 $ 59.71 The Company determines the fair value of restricted stock awards and any performance-related components based on the closing market price of the Company’s common stock on the date of grant. For share-based awards with a performance-based vesting requirement, the Company evaluates the probability of achieving the performance criteria throughout the performance period and will adjust stock compensation expense up or down based on its estimated probable outcome. Certain performance-based awards contain market condition components which are valued on the date of grant using a Monte Carlo simulation model. A summary of the status and changes of the Company’s unvested shares is presented below: Shares Weighted-Average Grant-Date Fair Value Unvested at December 31, 2023 3,462,705 $ 43.54 Granted 1,323,710 60.14 Vested ( 960,016 ) 44.35 Cancelled ( 11,600 ) 44.42 Performance Adjustment 224,809 46.87 Unvested at March 31, 2024 4,039,608 $ 48.97 For the three months ended March 31, 2024, shares were issued based on achievement of certain EPS and TSR metrics. A summary of the payout for EPS and TSR grants is presented below: Three Months Ended March 31, 2024 Target Shares Payout Factor Performance Adjustment December 2020 EPS Grant 125,000 133 % 41,665 December 2020 TSR Grant 125,000 162 % 77,250 March 2021 EPS Grant 108,750 133 % 36,250 March 2021 TSR Grant 108,750 164 % 69,644 Total Performance Adjustments 224,809 For the three months ended March 31, 2024 and 2023, the Company recognized $ 19.7 million and $ 13.5 million of incentive stock compensation expense. At March 31, 2024, the unamortized stock compensation of $ 142.4 million is expected to be recognized over a weighted-average period of 1.66 years. STOCK PURCHASE PLAN A total of 5,000,000 shares of Class A Common Stock are available for sale under the 2018 Employee Stock Purchase Plan (“2018 ESPP”). The 2018 ESPP provides eligible employees of the Company and its subsidiaries the opportunity to purchase shares of the Company’s Class A Common Stock at a purchase price equal to 85 % of the fair market value on the first trading day or last trading day of each purchase period, whichever is lower. Eligible employees can invest up to 15 % of their compensation through payroll deductions during each purchase period. The purchase price discount and the look-back feature cause the 2018 ESPP to be compensatory and the Company recognizes compensation expense, which is computed using the Black-Scholes valuation model. For the three months ended March 31, 2024 and 2023, the Company recognized $ 1.0 million and $ 0.7 million ESPP stock compensation expense. At March 31, 2024, there w ere 3,573,580 shares available for sale under the 2018 ESPP. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (6) Earnings Per Share Basic EPS and diluted EPS are calculated by dividing net earnings by the following: for basic EPS, the weighted-average number of common shares outstanding for the period; and for diluted EPS, the sum of the weighted-average number of both outstanding common shares and potentially dilutive common shares using the treasury stock method. The calculation of EPS is as follows: Three Months Ended March 31, (in thousands, except per share data) 2024 2023 Net earnings attributable to Skechers U.S.A., Inc. $ 206,622 $ 160,443 Weighted-average common shares outstanding, basic 152,918 155,140 Dilutive effect of nonvested shares 2,201 1,615 Weighted-average common shares outstanding, diluted 155,119 156,755 Anti-dilutive common shares excluded above 5 10 Net earnings per share attributable to Skechers U.S.A., Inc. Basic $ 1.35 $ 1.03 Diluted $ 1.33 $ 1.02 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (7) Income Taxes The tax provisions for the three months ended March 31, 2024 and 2023, were computed using the estimated effective tax rates applicable to each of the domestic and international taxable jurisdictions for the full year. The Company’s provision for income tax expense and effective income tax rate are significantly impacted by the mix of the Company’s domestic and foreign earnings (loss) before income taxes. In the foreign jurisdictions in which the Company has operations, the applicable statutory rates range from 0 % to 35 % , which is on average significantly lower than the U.S. federal and state combined statutory rate of 25 %. The Company’s effective tax rate was 19.0 % and 18.5 % for the three months ended March 31, 2024 and 2023. For the quarter, the increase in the effective tax rate is the result of the mix of earnings across foreign jurisdictions. Our U.S. federal tax returns are under examination by the Internal Revenue Service for fiscal years ended December 31, 2015 through December 31, 2022. We are unable to determine the impact of this examination due to the audit process having not been completed. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (8) Related Party Transactions The Skechers Foundation (the “Foundation”) is a 501(c)(3) non-profit entity and not a subsidiary or otherwise affiliated with the Company. The Company does not have a financial interest in the Foundation. However, two officers and directors of the Company, Michael Greenberg, the Company’s President, and David Weinberg, the Company’s Chief Operating Officer, are officers and directors of the Foundation. On January 30, 2024, the Company's Audit Committee approved contributions of $ 2.0 million to the Foundation in 2024. |
Segment and Geographic Informat
Segment and Geographic Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | (9) Segment and Geographic Information The Company has two reportable segments, Wholesale and Direct-to-Consumer. Management evaluates segment performance based primarily on sales and gross margin. 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 Three Months Ended March 31, (in thousands) 2024 2023 Wholesale sales $ 1,421,698 $ 1,294,558 Gross profit 636,040 511,999 Gross margin 44.7 % 39.6 % Direct-to-Consumer sales $ 829,889 $ 707,370 Gross profit 545,594 466,580 Gross margin 65.7 % 66.0 % Total sales $ 2,251,587 $ 2,001,928 Gross profit 1,181,634 978,579 Gross margin 52.5 % 48.9 % (in thousands) As of As of Identifiable assets Wholesale $ 3,750,122 $ 3,607,537 Direct-to-Consumer 3,817,318 3,939,814 Total $ 7,567,440 $ 7,547,351 Three Months Ended March 31, (in thousands) 2024 2023 Additions to property, plant and equipment Wholesale $ 32,763 $ 51,516 Direct-to-Consumer 24,324 19,697 Total $ 57,087 $ 71,213 Geographic Information Three Months Ended March 31, (in thousands) 2024 2023 Geographic sales Domestic Wholesale $ 475,950 $ 441,903 Domestic Direct-to-Consumer 322,854 298,963 Total domestic sales 798,804 740,866 International Wholesale 945,748 852,655 International Direct-to-Consumer 507,035 408,407 Total international sales 1,452,783 1,261,062 Total sales $ 2,251,587 $ 2,001,928 Regional Sales Americas (AMER) $ 1,019,467 $ 945,931 Europe, Middle East & Africa (EMEA) 627,652 534,494 Asia Pacific (APAC) 604,468 521,503 Total sales $ 2,251,587 $ 2,001,928 China sales $ 319,514 $ 281,953 (in thousands) As of As of Property, plant and equipment, net Domestic $ 969,810 $ 957,569 International 549,653 549,121 Total $ 1,519,463 $ 1,506,690 China property plant and equipment, net $ 285,337 $ 286,854 The Company’s sales to its five largest customers accounted for 8.5 % and 8.0 % of total sales for the three months ended March 31, 2024 and 2023. Assets located outside the U.S. consist primarily of cash, accounts receivable, inventory, property, plant and equipment, and other assets. Net assets held outside the U.S. were $ 5.2 billion and $ 5.1 billion at March 31, 2024 and December 31, 2023. The Company performs regular evaluations concerning the ability of customers to satisfy their obligations and provides for estimated doubtful accounts. 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 March 31, 2024 and 2023 were $ 1.3 million and $ 0.7 million. The Company’s accounts receivables, excluding allowances for bad debts and chargebacks, by geography are summarized as follows: (in thousands) As of As of Domestic Accounts Receivable $ 396,278 $ 276,918 International Accounts Receivable 819,126 641,249 The Company’s top five manufacturers produced the following: Three Months Ended March 31, (percentage of total production) 2024 2023 Manufacturer #1 20.0 23.2 Manufacturer #2 8.9 6.1 Manufacturer #3 5.4 5.8 Manufacturer #4 5.1 5.8 Manufacturer #5 3.7 5.3 Total 43.1 46.2 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (10) Commitments and Contingencies In accordance with GAAP, the Company records a liability in its condensed consolidated financial statements for loss contingencies when a loss is known or considered probable and the amount can be reasonably estimated. When determining the estimated loss or range of loss, significant judgment is required to estimate the amount and timing of a loss to be recorded. Estimates of probable losses resulting from litigation and governmental proceedings are inherently difficult to predict, particularly when the matters are in the procedural stages or with unspecified or indeterminate claims for damages, potential penalties, or fines. Accordingly, the Company cannot determine the final amount, if any, of its liability beyond the amount accrued in the condensed consolidated financial statements at March 31, 2024 , nor is it possible to estimate what litigation-related costs will be in the future; however, the Company believes that the likelihood that claims related to litigation would result in a material loss to the Company, either individually or in the aggregate, is remote. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2024 | |
Business Combinations [Abstract] | |
Business Combinations | (11) Business Combinations Business acquisitions are accounted for under the acquisition method by assigning the purchase consideration to tangible and intangible assets acquired and liabilities assumed. The results of businesses acquired in a business combination are included in the consolidated financial statements from the date of acquisition. Assets acquired and liabilities assumed are recorded at their fair values and the excess of the purchase consideration over the amounts assigned is recorded as goodwill. Purchased intangible assets with finite lives are amortized over their estimated useful lives. Fair value determinations require judgment and may involve the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, asset lives, and market multiples, among other items. On May 31, 2023, the Company acquired 100 % of the equity interests of Sports Connection Holdings ApS ("Sports Connection"), a Denmark-based company and a former distributor, to further broaden our reach in Europe. The total consideration was $ 83.7 million and consisted of an initial cash payment of $ 74.8 million, the settlement of pre-existing receivables of $ 1.7 million and a contingent consideration payable of up to $ 7.5 million, subject to the acquiree achieving certain 2023 financial results, and reduced by a working capital adjustment of $ 0.3 million. On the acquisition date, we re corded intangible assets of $ 54.4 million, goodwill of $ 7.7 million and other net assets of $ 21.6 million. The intangible assets have an estimated life of 7 years and are primarily related to reacquired rights. The acquisition is a non-taxable business combination and goodwill is not deductible for tax purposes. The contingent consideration was paid in February 2024, for $ 7.1 million based on the acquiree achieving certain financial results in 2023. The results of Sports Connection's operations have been included in, but are not material to, the Company's condensed consolidated results of operations since the date of acquisition. Unaudited supplemental pro forma results of operations have not been presented because the effect of the acquisition was not material to the Company's condensed consolidated financial statements. One-time acquisition related costs of $ 1.6 million were expensed as general and administrative expenses as incurred. The purchase accounting for the Sports Connection acquisition remains preliminary. Although the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, as well as any contingent consideration, the estimates are inherently uncertain and subject to refinement. As a result, any adjustments will be recognized in the reporting period in which the amounts are determined, but not to exceed twelve months from the acquisition date. |
General (Policies)
General (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Skechers U.S.A., Inc. (the “Company”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”), for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S‑X. In the opinion of management, all normal adjustments and accruals considered necessary to provide a fair statement of the results of operations for the interim periods presented have been included. The December 31, 2023 balance sheet data was derived from audited financial statements; however, the accompanying notes to condensed consolidated financial statements do not include all of the annual disclosures required under GAAP and should be read in conjunction with the Company’s 2023 Annual Report on Form 10-K. |
Noncontrolling Interests | Noncontrolling Interests The Company has equity interests in several joint ventures that were established either to exclusively distribute the Company’s products throughout Mexico, Asia and the Middle East or to construct the Company’s domestic distribution facility. These joint ventures are variable interest entities (“VIE”), and the Company is considered the primary beneficiary. This determination is based on the relationships between the Company and the VIE, including management agreements, governance documents and other contractual arrangements. Specifically, the Company has both of the following characteristics: (a) the power to direct the activities of the entity that most significantly impact the entity’s economic performance; and (b) the obligation to absorb losses of the entity that could potentially be significant to the VIE, or the right to receive benefits from the entity that could potentially be significant to the VIE. The assets and liabilities and results of operations of these entities are included in the Company’s condensed consolidated financial statements, even though the Company may not hold a majority equity interest. The Company continues to reassess these relationships quarterly. The assets of these joint ventures are restricted, as they are not available for general business use outside the context of such joint ventures. The holders of the liabilities of each joint venture have no recourse to the Company. |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value hierarchy as defined by applicable accounting standards prioritizes the use of inputs used in valuation techniques into the following three levels: • Level 1: Quoted market prices in active markets for identical assets or liabilities. • Level 2: Other observable market-based inputs or unobservable inputs that are corroborated by market data. • Level 3: Unobservable inputs that cannot be corroborated by market data that reflect the reporting entity’s own assumptions. The Company’s Level 1 investments primarily include money market funds, United States (“U.S.”) Treasury securities and actively traded mutual funds; Level 2 investments primarily include corporate notes and bonds, asset-backed securities and U.S. Agency securities; and the Company does not currently have any Level 3 assets or liabilities. The Company has one Level 2 derivative instrument which is an interest rate swap (see Note 4 – Financial Commitments) classified as prepaid expenses and other at March 31, 2024 and as other assets, net at December 31, 2023. The fair value of the interest rate swap was determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipt was based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. Credit valuation adjustments were incorporated to appropriately reflect both the Company’s nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. The carrying amount of receivables, payables and other amounts arising out of the normal course of business approximates fair value because of the relatively short maturity of such instruments. The carrying amount of the Company’s short-term and long-term borrowings, which are considered Level 2 liabilities, approximates fair value based on current rates and terms available to the Company for similar debt. |
Derivative Instruments | DERIVATIVE INSTRUMENTS The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage exposure to interest rate movements . To accomplish this objective, the Company uses an interest rate swap as part of its interest rate risk management strategy. The Company’s interest rate swap, designated as a cash flow hedge, involves the receipt of variable amounts from a counterparty in exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. By utilizing an interest rate swap, the Company is exposed to credit-related losses in the event that the counterparty fails to perform under the terms of the derivative contract. To mitigate this risk, the Company enters into derivative contracts with major financial institutions based upon credit ratings and other factors. The Company continually assesses the creditworthiness of its counterparties. As of March 31, 2024 , all counterparties to the interest rate swap had performed in accordance with their contractual obligations. |
Recently Adopted Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. Among other new disclosure requirements, ASU 2023-07 requires companies to disclose significant segment expenses that are regularly provided to the chief operating decision maker. ASU 2023-07 will be effective for annual periods beginning on January 1, 2024 and interim periods beginning on January 1, 2025. ASU 2023-07 must be applied retrospectively to all prior periods presented in the financial statements. We are currently evaluating the disclosure impact of ASU 2023-07. In December 2023, the FASB issued ASU No. 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires companies to disclose, on an annual basis, specific categories in the effective tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. In addition, ASU 2023-09 requires companies to disclose additional information about income taxes paid. ASU 2023-09 will be effective for annual periods beginning January 1, 2025 and will be applied on a prospective basis with the option to apply the standard retrospectively. We are currently evaluating the disclosure impact of ASU 2023-09. RecentLY ADOPTED Accounting Pronouncements In March 2023, the FASB issued ASU 2023-01 Leases (Topic 842): Common Control Arrangements , which requires all lessees to amortize leasehold improvements associated wit h common control leases over their useful life to the common control group. The Company adopted ASU 2023-01 on January 1, 2024, and the adoption of this ASU did not have a material impact on its condensed consolidated financial statements. |
Cash, Cash Equivalents, Short_2
Cash, Cash Equivalents, Short-Term And Long-Term Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Cash Cash Equivalents And Short Term And Long Term Investments [Abstract] | |
Summary of Cash, Cash Equivalents, Short-Term and Long-Term Investments by Significant Investment Category | The following tables show the Company’s cash, cash equivalents, short-term and long-term investments by significant investment category: As of March 31, 2024 (in thousands) Adjusted Cost Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 989,632 $ 989,632 $ 989,632 $ — $ — Level 1 Money market funds 12,646 12,646 12,646 — — U.S. Treasury securities 19,301 19,301 4,997 12,833 1,471 Mutual funds N/A 6,391 — — 6,391 Total level 1 31,947 38,338 17,643 12,833 7,862 Level 2 Corporate notes and bonds 121,604 121,604 13,183 57,864 50,557 Asset-backed securities 19,853 19,853 — 1,199 18,654 U.S. Agency securities 23,506 23,506 — 16,668 6,838 Total level 2 164,963 164,963 13,183 75,731 76,049 Total $ 1,186,542 $ 1,192,933 $ 1,020,458 $ 88,564 $ 83,911 As of December 31, 2023 (in thousands) Adjusted Cost Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 972,278 $ 972,278 $ 972,278 $ — $ — Level 1 Money market funds 176,317 176,317 176,317 — — U.S. Treasury securities 39,769 39,769 29,942 9,827 — Mutual funds N/A 8,535 — — 8,535 Total level 1 216,086 224,621 206,259 9,827 8,535 Level 2 Corporate notes and bonds 97,795 97,795 9,374 50,949 37,472 Asset-backed securities 11,159 11,159 — — 11,159 U.S. Agency securities 27,269 27,269 1,999 11,819 13,451 Total level 2 136,223 136,223 11,373 62,768 62,082 Total $ 1,324,587 $ 1,333,122 $ 1,189,910 $ 72,595 $ 70,617 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses | Accrued expenses were as follows: As of As of (in thousands) March 31, 2024 December 31, 2023 Accrued payroll, taxes, and other $ 177,694 $ 166,132 Return reserve liability 90,038 80,968 Accrued inventory purchases 34,481 73,005 Accrued expenses $ 302,213 $ 320,105 |
Financial Commitments (Tables)
Financial Commitments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Borrowings | Long-term borrowings were as follows: As of As of (in thousands) March 31, 2024 December 31, 2023 HF-T1 Distribution Center Loan $ 129,505 $ 129,505 HF-T2 Distribution Center Construction Loan 73,017 73,017 China Distribution Center Expansion Construction Loan 39,496 40,330 China Operational Loans 103,908 46,228 Other 366 435 Subtotal 346,292 289,515 Less: Current installments 233,756 46,571 Total long-term borrowings $ 112,536 $ 242,944 |
Stockholders Equity and Stock_2
Stockholders Equity and Stock Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Summary of Stock Repurchase Activities | The following table provides a summary the Company’s stock repurchase activities: Three Months Ended March 31, 2024 2023 Shares repurchased 994,215 676,190 Average cost per share $ 60.37 $ 44.39 Total cost of shares repurchased (in thousands) $ 60,020 $ 30,014 |
Summary of Stock-Based Instruments | The Company issued the following stock-based instruments: Three Months Ended March 31, 2024 2023 Granted Weighted-Average Grant-Date Fair Value Granted Weighted-Average Grant-Date Fair Value Restricted stock 1,136,710 $ 58.56 300,970 $ 43.77 Performance-based restricted stock 93,500 $ 60.64 121,225 $ 43.34 Market-based restricted stock 93,500 $ 78.80 121,225 $ 59.71 The Company determines the fair value of restricted stock awards and any performance-related components based on the closing market price of the Company’s common stock on the date of grant. For share-based awards with a performance-based vesting requirement, the Company evaluates the probability of achieving the performance criteria throughout the performance period and will adjust stock compensation expense up or down based on its estimated probable outcome. Certain performance-based awards contain market condition components which are valued on the date of grant using a Monte Carlo simulation model. |
Summary of Unvested Shares | A summary of the status and changes of the Company’s unvested shares is presented below: Shares Weighted-Average Grant-Date Fair Value Unvested at December 31, 2023 3,462,705 $ 43.54 Granted 1,323,710 60.14 Vested ( 960,016 ) 44.35 Cancelled ( 11,600 ) 44.42 Performance Adjustment 224,809 46.87 Unvested at March 31, 2024 4,039,608 $ 48.97 |
Summary of the Payout for EPS and TSR Grants | A summary of the payout for EPS and TSR grants is presented below: Three Months Ended March 31, 2024 Target Shares Payout Factor Performance Adjustment December 2020 EPS Grant 125,000 133 % 41,665 December 2020 TSR Grant 125,000 162 % 77,250 March 2021 EPS Grant 108,750 133 % 36,250 March 2021 TSR Grant 108,750 164 % 69,644 Total Performance Adjustments 224,809 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Summary of Calculation of EPS | The calculation of EPS is as follows: Three Months Ended March 31, (in thousands, except per share data) 2024 2023 Net earnings attributable to Skechers U.S.A., Inc. $ 206,622 $ 160,443 Weighted-average common shares outstanding, basic 152,918 155,140 Dilutive effect of nonvested shares 2,201 1,615 Weighted-average common shares outstanding, diluted 155,119 156,755 Anti-dilutive common shares excluded above 5 10 Net earnings per share attributable to Skechers U.S.A., Inc. Basic $ 1.35 $ 1.03 Diluted $ 1.33 $ 1.02 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | Segment Information Three Months Ended March 31, (in thousands) 2024 2023 Wholesale sales $ 1,421,698 $ 1,294,558 Gross profit 636,040 511,999 Gross margin 44.7 % 39.6 % Direct-to-Consumer sales $ 829,889 $ 707,370 Gross profit 545,594 466,580 Gross margin 65.7 % 66.0 % Total sales $ 2,251,587 $ 2,001,928 Gross profit 1,181,634 978,579 Gross margin 52.5 % 48.9 % (in thousands) As of As of Identifiable assets Wholesale $ 3,750,122 $ 3,607,537 Direct-to-Consumer 3,817,318 3,939,814 Total $ 7,567,440 $ 7,547,351 Three Months Ended March 31, (in thousands) 2024 2023 Additions to property, plant and equipment Wholesale $ 32,763 $ 51,516 Direct-to-Consumer 24,324 19,697 Total $ 57,087 $ 71,213 |
Geographic Information | Geographic Information Three Months Ended March 31, (in thousands) 2024 2023 Geographic sales Domestic Wholesale $ 475,950 $ 441,903 Domestic Direct-to-Consumer 322,854 298,963 Total domestic sales 798,804 740,866 International Wholesale 945,748 852,655 International Direct-to-Consumer 507,035 408,407 Total international sales 1,452,783 1,261,062 Total sales $ 2,251,587 $ 2,001,928 Regional Sales Americas (AMER) $ 1,019,467 $ 945,931 Europe, Middle East & Africa (EMEA) 627,652 534,494 Asia Pacific (APAC) 604,468 521,503 Total sales $ 2,251,587 $ 2,001,928 China sales $ 319,514 $ 281,953 (in thousands) As of As of Property, plant and equipment, net Domestic $ 969,810 $ 957,569 International 549,653 549,121 Total $ 1,519,463 $ 1,506,690 China property plant and equipment, net $ 285,337 $ 286,854 |
Summary of Accounts Receivables Excluding Allowances for Bad Debts and Chargebacks | The Company’s accounts receivables, excluding allowances for bad debts and chargebacks, by geography are summarized as follows: (in thousands) As of As of Domestic Accounts Receivable $ 396,278 $ 276,918 International Accounts Receivable 819,126 641,249 |
Company's Top Five Manufacturers Produced | The Company’s top five manufacturers produced the following: Three Months Ended March 31, (percentage of total production) 2024 2023 Manufacturer #1 20.0 23.2 Manufacturer #2 8.9 6.1 Manufacturer #3 5.4 5.8 Manufacturer #4 5.1 5.8 Manufacturer #5 3.7 5.3 Total 43.1 46.2 |
General - Additional Informatio
General - Additional Information (Detail) | Mar. 31, 2024 Derivative |
Interest Rate Swap [Member] | Level 2 [Member] | |
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | |
Number of derivative instrument | 1 |
Cash, Cash Equivalents, Short_3
Cash, Cash Equivalents, Short-Term and Long-Term Investments - Summary of Cash, Cash Equivalents, Short-Term and Long-Term Investments by Significant Investment Category (Detail) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||
Cash and Cash Equivalents | $ 1,020,458,000 | $ 1,189,910,000 |
Short-Term Investments | 88,564,000 | 72,595,000 |
Long-Term Investments | 83,911,000 | 70,617,000 |
Adjusted Cost | 1,186,542,000 | 1,324,587,000 |
Fair Value | 1,192,933,000 | 1,333,122,000 |
Level 1 [Member] | ||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||
Cash and Cash Equivalents | 17,643,000 | 206,259,000 |
Fair Value | 38,338,000 | 224,621,000 |
Short-Term Investments | 12,833,000 | 9,827,000 |
Long-Term Investments | 7,862,000 | 8,535,000 |
Adjusted Cost | 31,947 | 216,086,000 |
Level 2 [Member] | ||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||
Cash and Cash Equivalents | 13,183,000 | 11,373,000 |
Fair Value | 164,963,000 | 136,223,000 |
Short-Term Investments | 75,731,000 | 62,768,000 |
Long-Term Investments | 76,049,000 | 62,082,000 |
Adjusted Cost | 164,963,000 | 136,223,000 |
Money market funds [Member] | Level 1 [Member] | ||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||
Cash and Cash Equivalents | 12,646,000 | 176,317,000 |
Fair Value | 12,646,000 | 176,317,000 |
Adjusted Cost | 12,646 | 176,317,000 |
U.S. Treasury Securities [Member] | Level 1 [Member] | ||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||
Cash and Cash Equivalents | 4,997,000 | 29,942,000 |
Fair Value | 19,301,000 | 39,769,000 |
Short-Term Investments | 12,833,000 | 9,827,000 |
Long-Term Investments | 1,471,000 | |
Adjusted Cost | 19,301 | 39,769,000 |
Mutual Funds [Member] | Level 1 [Member] | ||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||
Fair Value | 6,391,000 | 8,535,000 |
Long-Term Investments | 6,391,000 | 8,535,000 |
Corporate Notes and Bonds [Member] | Level 2 [Member] | ||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||
Cash and Cash Equivalents | 13,183,000 | 9,374,000 |
Fair Value | 121,604,000 | 97,795,000 |
Short-Term Investments | 57,864,000 | 50,949,000 |
Long-Term Investments | 50,557,000 | 37,472,000 |
Adjusted Cost | 121,604,000 | 97,795,000 |
Asset-backed Securities [Member] | Level 2 [Member] | ||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||
Fair Value | 19,853,000 | 11,159,000 |
Short-Term Investments | 1,199,000 | |
Long-Term Investments | 18,654,000 | 11,159,000 |
Adjusted Cost | 19,853,000 | 11,159,000 |
Cash [Member] | ||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||
Cash and Cash Equivalents | 989,632,000 | 972,278,000 |
Fair Value | 989,632,000 | 972,278,000 |
U.S. Agency securities [Member] | Level 2 [Member] | ||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||
Cash and Cash Equivalents | 1,999,000 | |
Fair Value | 23,506,000 | 27,269,000 |
Short-Term Investments | 16,668,000 | 11,819,000 |
Long-Term Investments | 6,838,000 | 13,451,000 |
Adjusted Cost | $ 23,506,000 | $ 27,269,000 |
Cash, Cash Equivalents, Short_4
Cash, Cash Equivalents, Short-Term and Long-Term Investments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | |||
Interest income | $ 8,500 | $ 2,600 | |
Company owned life insurance contracts | 143,503 | $ 123,996 | |
Life Insurance Contracts [Member] | |||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | |||
Company owned life insurance contracts | $ 59,600 | $ 53,400 | |
Maximum [Member] | |||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | |||
Long-term investments maturity period | 2 years |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Accrued payroll, taxes, and other | $ 177,694 | $ 166,132 |
Return reserve liability | 90,038 | 80,968 |
Accrued inventory purchases | 34,481 | 73,005 |
Accrued expenses | $ 302,213 | $ 320,105 |
Financial Commitments - Additio
Financial Commitments - Additional Information (Detail) | 3 Months Ended | ||||||
Oct. 18, 2022 USD ($) | Dec. 15, 2021 | Apr. 03, 2020 USD ($) | Mar. 18, 2020 | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |||||||
Outstanding letters of credit | $ 32,400,000 | $ 32,500,000 | |||||
Short-term borrowings | 0 | 11,894,000 | |||||
Interest Expense | 4,700,000 | $ 5,100,000 | |||||
Interest Rate Swap [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate notional amount | $ 129,500,000 | $ 129,500,000 | |||||
Weighted-average fixed rate | 0.778% | 0.778% | |||||
Derivative, fixed interest rate | 2.63% | 2.63% | |||||
China Distribution Center Construction Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Loan amount | $ 1,100,000,000 | ||||||
Debt instrument rate | 3.30% | ||||||
Debt instrument, term | 10 years | ||||||
Other China Operational Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument variable rate | 2.60% | ||||||
Joint Venture with HF Logistics [Member] | 2020 Amendment Loan [Member] | SOFR Loans [Member] | Interest Rate Swap [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument basis spread on variable rate | SOFR Daily Floating Rate plus a margin of 1.75% per annum. | ||||||
Debt Instrument, Interest Rate Terms | SOFR Daily Floating Rate plus a margin of 1.75% per annum. | ||||||
Joint Venture with HF Logistics [Member] | Construction Loan Agreement [Member] | Interest Rate Swap [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate swap agreement date | Aug. 14, 2015 | ||||||
Joint Venture with HF Logistics [Member] | 2020 Construction Loan Agreement [Member] | HF-T2 Distribution Center Construction Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Weighted-average annual interest rate | 7.12% | ||||||
Debt instrument maturity date | Apr. 03, 2025 | ||||||
Interest rate of line of credit agreement | 1.90% | ||||||
Debt instrument basis spread on variable rate | The interest rate is based on the Bloomberg Short-Term Bank Yield Index Daily Floating Rate plus a margin of 190 basis points, reducing to 175 basis points upon substantial completion of the construction and certain other conditions being satisfied. | ||||||
Debt Instrument, Interest Rate Terms | The interest rate is based on the Bloomberg Short-Term Bank Yield Index Daily Floating Rate plus a margin of 190 basis points, reducing to 175 basis points upon substantial completion of the construction and certain other conditions being satisfied. | ||||||
Debt instrument, decrease in basis points | 1.75% | ||||||
Maximum [Member] | Joint Venture with HF Logistics [Member] | HF-T2 Distribution Center Construction Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Borrowing under loan agreement | $ 73,000,000 | ||||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facilities borrowings outstanding | $ 0 | $ 11,900,000 | |||||
International Market Credit Facilities [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum amount of credit facility | 117,300,000 | ||||||
Amended Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument unused credit capacity | 746,900,000 | 746,900,000 | |||||
Amended Credit Agreement [Member] | Unsecured Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum amount of credit facility | $ 750,000,000 | ||||||
Maturity date of credit agreement | Dec. 15, 2026 | ||||||
Amended Credit Agreement [Member] | Line of Credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Increase in leverage ratio | 4.25% | ||||||
Amended Credit Agreement [Member] | Line of Credit [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit, increase | $ 250,000,000 | ||||||
Adjusted net leverage ratio | 3.75 | ||||||
Amended Credit Agreement [Member] | Letters of Credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum amount of credit facility | 100,000,000 | ||||||
Amended Credit Agreement [Member] | Swingline Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum amount of credit facility | 50,000,000 | ||||||
Amended Credit Agreement [Member] | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Short-term borrowings | $ 0 | $ 0 | |||||
HF-T1 Distribution Center Loan [Member] | Joint Venture with HF Logistics [Member] | 2020 Amendment Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument maturity date | Mar. 18, 2025 | ||||||
HF-T1 Distribution Center Loan [Member] | Joint Venture with HF Logistics [Member] | 2020 Amendment Loan [Member] | SOFR Loans [Member] | Interest Rate Swap [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate of line of credit agreement | 1.75% | ||||||
HF-T1 Distribution Center Loan [Member] | Joint Venture with HF Logistics [Member] | Construction Loan Agreement [Member] | Interest Rate Swap [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Derivative maturity date | Mar. 18, 2025 | ||||||
Effective fixed interest rate of loan with swap | 2.55% | ||||||
HF-T1 Distribution Center Loan [Member] | Minimum [Member] | 2020 Amendment Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Borrowing under loan agreement | $ 129,500,000 | ||||||
Interests at a Range of 2.75% to 2.90% per Annum [Member] | Maximum [Member] | Other China Operational Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument variable rate | 2.90% | ||||||
Interests at a Range of 2.75% to 2.90% per Annum [Member] | Minimum [Member] | Other China Operational Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument variable rate | 2.75% |
Financial Commitments - Long-Te
Financial Commitments - Long-Term Borrowings (Detail) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 346,292 | $ 289,515 |
Current installments of long-term borrowings | 233,756 | 46,571 |
Long-term borrowings | 112,536 | 242,944 |
China Operational Loans [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 103,908 | 46,228 |
China Distribution Center Expansion Construction Loan | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 39,496 | 40,330 |
Other [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 366 | 435 |
HF-T1 Distribution Center Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 129,505 | 129,505 |
HF-T2 Distribution Center Construction Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 73,017 | $ 73,017 |
Stockholders Equity and Stock_3
Stockholders Equity and Stock Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Jan. 31, 2022 | |
Class Of Stock [Line Items] | |||
Stock repurchase program expiration date | Jan. 31, 2025 | ||
Remaining to repurchase shares under Share Repurchase Program | $ 205.7 | ||
Recognized stock compensation expense | 19.7 | $ 13.5 | |
Unrecognized compensation cost related to nonvested common shares | $ 142.4 | ||
Weighted average period for recognition of cost | 1 year 7 months 28 days | ||
ESPP | |||
Class Of Stock [Line Items] | |||
Recognized stock compensation expense | $ 1 | $ 0.7 | |
Performance-Based Awards [Member] | |||
Class Of Stock [Line Items] | |||
Performance period | 3 years | ||
Performance-Based Awards [Member] | Minimum [Member] | |||
Class Of Stock [Line Items] | |||
Payout percentage of performance awards | 0% | ||
Performance-Based Awards [Member] | Maximum [Member] | |||
Class Of Stock [Line Items] | |||
Payout percentage of performance awards | 200% | ||
2018 ESPP [Member] | |||
Class Of Stock [Line Items] | |||
Number of shares available for sale under employee stock purchase plan | 3,573,580 | ||
Percentage of price of common stock purchased | 85% | ||
Maximum percentage of employee's compensation to purchase common stock | 15% | ||
2023 Plan [Member] | Performance-Based Awards [Member] | |||
Class Of Stock [Line Items] | |||
Number of shares that remain available for grant | 5,457,960 | ||
2023 Plan [Member] | Performance-Based Awards [Member] | Maximum [Member] | |||
Class Of Stock [Line Items] | |||
Number of shares that remain available for grant | 4,873,510 | ||
Class A Common Stock [Member] | |||
Class Of Stock [Line Items] | |||
Stock repurchase program authorized amount | $ 500 | ||
Class A Common Stock [Member] | 2018 ESPP [Member] | |||
Class Of Stock [Line Items] | |||
Number of shares available for sale under employee stock purchase plan | 5,000,000 |
Stockholders Equity and Stock_4
Stockholders Equity and Stock Compensation - Summary of Stock Repurchase Activities (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Shares repurchased | 994,215 | 676,190 |
Average cost per share | $ 60.37 | $ 44.39 |
Total cost of shares repurchased (in thousands) | $ 60,020 | $ 30,014 |
Stockholders Equity and Stock_5
Stockholders Equity and Stock Compensation - Summary of Stock-Based Instruments (Detail) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted, shares | 1,323,710 | |
Weighted-Average Grant-Date Fair Value, shares | $ 60.14 | |
Restricted Stock [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted, shares | 1,136,710 | 300,970 |
Weighted-Average Grant-Date Fair Value, shares | $ 58.56 | $ 43.77 |
Performance-Based Restricted Stock [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted, shares | 93,500 | 121,225 |
Weighted-Average Grant-Date Fair Value, shares | $ 60.64 | $ 43.34 |
Market-Based Restricted Stock [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted, shares | 93,500 | 121,225 |
Weighted-Average Grant-Date Fair Value, shares | $ 78.8 | $ 59.71 |
Stockholders Equity and Stock_6
Stockholders Equity and Stock Compensation - Summary of Unvested Shares (Detail) | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | |
Unvested, Shares, Beginning of Period | shares | 3,462,705 |
Granted, Shares | shares | 1,323,710 |
Vested, Shares | shares | (960,016) |
Cancelled, Shares | shares | (11,600) |
Performance Adjustment, Shares | shares | 224,809 |
Unvested, Shares, End of Period | shares | 4,039,608 |
Unvested, Weighted Average Grant-Date Fair Value, Beginning of Period | $ / shares | $ 43.54 |
Granted, Weighted Average Grant-Date Fair Value | $ / shares | 60.14 |
Vested, Weighted Average Grant-Date Fair Value | $ / shares | 44.35 |
Cancelled, Weighted Average Grant-Date Fair Value | $ / shares | 44.42 |
Performance Adjustment, Weighted Average Grant-Date Fair Value | $ / shares | 46.87 |
Unvested, Weighted Average Grant-Date Fair Value, End of Period | $ / shares | $ 48.97 |
Stockholders Equity and Stock_7
Stockholders Equity and Stock Compensation - Summary of the Payout for EPS and TSR Grants (Detail) | 3 Months Ended |
Mar. 31, 2024 shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Performance Adjustment, Shares | 224,809 |
December 2020 EPS Grant [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Target Shares | 125,000 |
Payout Factor | 133% |
Performance Adjustment, Shares | 41,665 |
December 2020 TSR Grant [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Target Shares | 125,000 |
Payout Factor | 162% |
Performance Adjustment, Shares | 77,250 |
March 2021 EPS Grant [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Target Shares | 108,750 |
Payout Factor | 133% |
Performance Adjustment, Shares | 36,250 |
March 2021 TSR Grant [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Target Shares | 108,750 |
Payout Factor | 164% |
Performance Adjustment, Shares | 69,644 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Calculation of EPS (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Net Income (Loss) | $ 206,622 | $ 160,443 |
Weighted-average common shares outstanding, basic | 152,918 | 155,140 |
Dilutive effect of nonvested shares | 2,201 | 1,615 |
Weighted-average common shares outstanding, diluted | 155,119 | 156,755 |
Anti-dilutive common shares excluded above | 5 | 10 |
Net earnings per share attributable to Skechers U.S.A., Inc. | ||
Basic | $ 1.35 | $ 1.03 |
Diluted | $ 1.33 | $ 1.02 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Schedule Of Income Taxes [Line Items] | ||
U.S. federal and state statutory rate | 25% | |
Effective tax rate | 19% | 18.50% |
Non-U.S jurisdictions [Member] | Minimum [Member] | ||
Schedule Of Income Taxes [Line Items] | ||
Statutory federal rate | 0% | |
Non-U.S jurisdictions [Member] | Maximum [Member] | ||
Schedule Of Income Taxes [Line Items] | ||
Statutory federal rate | 35% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Millions | Jan. 30, 2024 USD ($) |
Related Party Transactions [Abstract] | |
Contributions to Skechers Foundation for various charitable purposes | $ 2 |
Segment and Geographic Inform_3
Segment and Geographic Information - Segment Reporting Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||
Sales | $ 2,251,587 | $ 2,001,928 | |
Gross profit | $ 1,181,634 | $ 978,579 | |
Gross margin | 52.50% | 48.90% | |
Identifiable assets | $ 7,567,440 | $ 7,547,351 | |
Additions to property, plant and equipment | 57,087 | $ 71,213 | |
Wholesale [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,421,698 | 1,294,558 | |
Gross profit | $ 636,040 | $ 511,999 | |
Gross margin | 44.70% | 39.60% | |
Identifiable assets | $ 3,750,122 | 3,607,537 | |
Additions to property, plant and equipment | 32,763 | $ 51,516 | |
Direct-to-Consumer [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 829,889 | 707,370 | |
Gross profit | $ 545,594 | $ 466,580 | |
Gross margin | 65.70% | 66% | |
Identifiable assets | $ 3,817,318 | $ 3,939,814 | |
Additions to property, plant and equipment | $ 24,324 | $ 19,697 |
Segment and Geographic Inform_4
Segment and Geographic Information - Geographic Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||
Sales | $ 2,251,587 | $ 2,001,928 | |
Property, plant and equipment, net | |||
Property, plant and equipment, net | 1,519,463 | $ 1,506,690 | |
Wholesale [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,421,698 | 1,294,558 | |
Direct-to-Consumer [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 829,889 | 707,370 | |
Domestic [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 798,804 | 740,866 | |
Property, plant and equipment, net | |||
Property, plant and equipment, net | 969,810 | 957,569 | |
Domestic [Member] | Wholesale [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 475,950 | 441,903 | |
Domestic [Member] | Direct-to-Consumer [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 322,854 | 298,963 | |
Americas (AMER) [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,019,467 | 945,931 | |
Europe, Middle East & Africa (EMEA) [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 627,652 | 534,494 | |
Asia Pacific (APAC) [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 604,468 | 521,503 | |
China Operational Loans [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 319,514 | 281,953 | |
Property, plant and equipment, net | |||
Property, plant and equipment, net | 285,337 | 286,854 | |
International [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,452,783 | 1,261,062 | |
Property, plant and equipment, net | |||
Property, plant and equipment, net | 549,653 | $ 549,121 | |
International [Member] | Wholesale [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 945,748 | 852,655 | |
International [Member] | Direct-to-Consumer [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | $ 507,035 | $ 408,407 |
Segment and Geographic Inform_5
Segment and Geographic Information - Additional Information (Detail) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) Customer | Mar. 31, 2023 USD ($) Customer | Dec. 31, 2023 USD ($) | |
Segment Reporting Information [Line Items] | |||
Provision for expected credit losses | $ 12,749 | $ 9,792 | |
International [Member] | |||
Segment Reporting Information [Line Items] | |||
Net assets held outside the United States | 5,200,000 | $ 5,100,000 | |
Provision for expected credit losses | $ 1,300 | $ 700 | |
Sales [Member] | Customer Concentration Risk [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of largest customers | Customer | 5 | 5 | |
Sales [Member] | Customer Concentration Risk [Member] | Five Largest Customers [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of concentration risk | 8.50% | 8% |
Segment and Geographic Inform_6
Segment and Geographic Information - Summary of Accounts Receivables Excluding Allowances for Bad Debts and Chargebacks (Detail) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Domestic [Member] | ||
Segment Reporting Information [Line Items] | ||
Accounts receivable | $ 396,278 | $ 276,918 |
International [Member] | ||
Segment Reporting Information [Line Items] | ||
Accounts receivable | $ 819,126 | $ 641,249 |
Segment and Geographic Inform_7
Segment and Geographic Information - Company's Top Five Manufacturers Produced (Detail) - Cost of Goods, Total [Member] - Supplier Concentration Risk [Member] | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Manufacturer One [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of Total Production | 20% | 23.20% |
Manufacturer Two [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of Total Production | 8.90% | 6.10% |
Manufacturer Three [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of Total Production | 5.40% | 5.80% |
Manufacturer Four [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of Total Production | 5.10% | 5.80% |
Manufacturer Five [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of Total Production | 3.70% | 5.30% |
Top Five Manufacturers [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of Total Production | 43.10% | 46.20% |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | |||
May 31, 2023 | Feb. 29, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | |
Business Acquisition [Line Items] | ||||
Business combination, cash payments | $ 7,100 | |||
Goodwill | $ 101,230 | $ 101,230 | ||
Other net assets | $ 127,416 | $ 136,086 | ||
Sports Connection Holdings Aps [Member] | ||||
Business Acquisition [Line Items] | ||||
Company acquired equity interest | 100% | |||
Business combination, consideration transferred | $ 83,700 | |||
Business combination, cash payments | 74,800 | |||
Business combination, settlement of pre-existing receivables | 1,700 | |||
Business combination, working capital adjustment | 300 | |||
Business combination, intangible assets acquired | 54,400 | |||
Goodwill | 7,700 | |||
Other net assets | $ 21,600 | |||
Intangible assets, estimated life | 7 years | |||
Sports Connection Holdings Aps [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Business combination, contingent consideration payable | $ 7,500 | |||
Sports Connection Holdings Aps [Member] | General and Administrative Expenses | ||||
Business Acquisition [Line Items] | ||||
Acquisition related costs | $ 1,600 |