Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Title of 12(b) Security | Class A Common Stock, par value $0.001 per share | |
Trading Symbol | SKX | |
Security Exchange Name | NYSE | |
Entity Registrant Name | SKECHERS USA INC | |
Entity Central Index Key | 0001065837 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity File Number | 001-14429 | |
Entity Tax Identification Number | 95-4376145 | |
Entity Address, Address Line One | 228 Manhattan Beach Blvd. | |
Entity Address, City or Town | Manhattan Beach | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90266 | |
City Area Code | 310 | |
Local Phone Number | 318-3100 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 134,172,217 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 20,949,425 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 1,284,540 | $ 1,370,826 |
Short-term investments | 106,028 | 100,767 |
Trade accounts receivable, less allowances of $47,468 and $48,562 | 798,836 | 619,800 |
Other receivables | 70,758 | 69,222 |
Total receivables | 869,594 | 689,022 |
Inventory | 1,067,437 | 1,016,774 |
Prepaid expenses and other current assets | 137,138 | 166,962 |
Total current assets ($920,986 and $862,954 related to VIEs) | 3,464,737 | 3,344,351 |
Property, plant and equipment, net | 992,512 | 935,441 |
Operating lease right-of-use assets | 1,159,339 | 1,171,521 |
Deferred tax assets | 63,339 | 63,884 |
Long-term investments | 124,379 | 108,412 |
Goodwill | 93,497 | 93,497 |
Other assets, net | 87,763 | 95,263 |
Total non-current assets ($686,035 and $682,068 related to VIEs) | 2,520,829 | 2,468,018 |
TOTAL ASSETS | 5,985,566 | 5,812,369 |
Current liabilities | ||
Current installments of long-term borrowings | 60,942 | 52,250 |
Short-term borrowings | 1,138 | 3,297 |
Accounts payable | 807,949 | 744,077 |
Operating lease liabilities | 217,241 | 204,370 |
Accrued expenses | 184,109 | 208,712 |
Total current liabilities ($544,355 and $526,466 related to VIEs) | 1,271,379 | 1,212,706 |
Long-term borrowings, excluding current installments | 717,595 | 679,415 |
Long-term operating lease liabilities | 1,039,763 | 1,065,069 |
Deferred tax liabilities | 10,835 | 11,439 |
Other long-term liabilities | 114,448 | 118,077 |
Total non-current liabilities ($385,807 and $365,235 related to VIEs) | 1,882,641 | 1,874,000 |
Total liabilities | 3,154,020 | 3,086,706 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity | ||
Preferred Stock, $0.001 par value; 10,000 shares authorized; none issued and outstanding | ||
Additional paid-in capital | 377,350 | 372,165 |
Accumulated other comprehensive loss | (36,349) | (27,285) |
Retained earnings | 2,234,973 | 2,136,400 |
Skechers U.S.A., Inc. equity | 2,576,129 | 2,481,435 |
Noncontrolling interests | 255,417 | 244,228 |
Total stockholders' equity | 2,831,546 | 2,725,663 |
TOTAL LIABILITIES AND EQUITY | 5,985,566 | 5,812,369 |
Class A Common Stock [Member] | ||
Stockholders’ equity | ||
Common Stock | 134 | 134 |
Class B Common Stock [Member] | ||
Stockholders’ equity | ||
Common Stock | $ 21 | $ 21 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Trade accounts receivable, allowances | $ 47,468 | $ 48,562 |
Current assets related to VIEs | 3,464,737 | 3,344,351 |
Non-current assets related to VIEs | 2,520,829 | 2,468,018 |
Current liabilities related to VIEs | 1,271,379 | 1,212,706 |
Non-current liabilities related to VIEs | $ 1,882,641 | $ 1,874,000 |
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] | ||
Current assets related to VIEs | $ 920,986 | $ 862,954 |
Non-current assets related to VIEs | 686,035 | 682,068 |
Current liabilities related to VIEs | 544,355 | 526,466 |
Non-current liabilities related to VIEs | $ 385,807 | $ 365,235 |
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 | 134,172,000 | 133,618,000 |
Common Stock, shares outstanding | 134,172,000 | 133,618,000 |
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 | 20,949,000 | 21,016,000 |
Common Stock, shares outstanding | 20,949,000 | 21,016,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Sales | $ 1,428,418 | $ 1,242,345 |
Cost of sales | 748,796 | 694,677 |
Gross profit | 679,622 | 547,668 |
Royalty income | 6,037 | 5,248 |
Operating income | 685,659 | 552,916 |
Operating expenses | ||
Selling | 85,296 | 74,055 |
General and administrative | 442,695 | 434,051 |
Selling, general and administrative | 527,991 | 508,106 |
Earnings from operations | 157,668 | 44,810 |
Other income (expense) | ||
Interest income | 796 | 2,307 |
Interest expense | (4,113) | (1,999) |
Other, net | (10,857) | 3,471 |
Total other income (expense) | (14,174) | 3,779 |
Earnings before income tax expense | 143,494 | 48,589 |
Income tax expense | 28,985 | 7,429 |
Net earnings | 114,509 | 41,160 |
Less: Net earnings (loss) attributable to noncontrolling interests | 15,936 | (7,941) |
Net earnings attributable to Skechers U.S.A., Inc. | $ 98,573 | $ 49,101 |
Net earnings per share attributable to Skechers U.S.A., Inc. | ||
Basic | $ 0.64 | $ 0.32 |
Diluted | $ 0.63 | $ 0.32 |
Weighted-average shares used in calculating net earnings per share attributable to Skechers U.S.A, Inc. | ||
Basic | 154,818 | 153,555 |
Diluted | 155,936 | 154,652 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net earnings | $ 114,509 | $ 41,160 |
Other comprehensive income, net of tax | ||
Loss on foreign currency translation adjustment | (12,505) | (29,764) |
Comprehensive income | 102,004 | 11,396 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 12,495 | (14,879) |
Comprehensive income attributable to Skechers U.S.A., Inc. | $ 89,509 | $ 26,275 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity - USD ($) | 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] | NON CONTROLLING INTEREST [Member] |
Beginning Balance at Dec. 31, 2019 | $ 2,536,107,000 | $ 131,000 | $ 22,000 | $ 306,669,000 | $ (29,993,000) | $ 2,037,836,000 | $ 2,314,665,000 | $ 221,442,000 | ||
Beginning Balance, Shares at Dec. 31, 2019 | 131,071,000 | 22,408,000 | ||||||||
Net earnings | 41,160,000 | 49,101,000 | 49,101,000 | (7,941,000) | ||||||
Foreign currency translation adjustment | (29,764,000) | (22,826,000) | (22,826,000) | (6,938,000) | ||||||
Distributions to noncontrolling interests | (14,865,000) | (14,865,000) | ||||||||
Noncontrolling interest of acquired businesses | 49,045,000 | 49,045,000 | ||||||||
Stock compensation expense | 12,441,000 | 12,441,000 | 12,441,000 | |||||||
Shares issued under the incentive award plan, Shares | 376,000 | |||||||||
Shares redeemed for employee tax withholdings | (5,659,000) | (5,659,000) | (5,659,000) | |||||||
Shares redeemed for employee tax withholdings, Shares | (171,000) | |||||||||
Ending Balance at Mar. 31, 2020 | 2,588,465,000 | 131,000 | 22,000 | 313,451,000 | (52,819,000) | 2,086,937,000 | 2,347,722,000 | 240,743,000 | ||
Ending Balance, Shares at Mar. 31, 2020 | 131,276,000 | 22,408,000 | ||||||||
Beginning Balance at Dec. 31, 2020 | 2,725,663,000 | 134,000 | 21,000 | 372,165,000 | (27,285,000) | 2,136,400,000 | 2,481,435,000 | 244,228,000 | ||
Beginning Balance, Shares at Dec. 31, 2020 | 133,618,000 | 21,016,000 | ||||||||
Net earnings | 114,509,000 | 98,573,000 | 98,573,000 | 15,936,000 | ||||||
Foreign currency translation adjustment | (12,505,000) | (9,064,000) | (9,064,000) | (3,441,000) | ||||||
Contribution from noncontrolling interests | 14,000 | 14,000 | ||||||||
Purchase of noncontrolling interest | (9,928,000) | (6,856,000) | (6,856,000) | (3,072,000) | ||||||
Net unrealized gain on derivative contract | 1,752,000 | 1,752,000 | ||||||||
Stock compensation expense | 12,041,000 | 12,041,000 | 12,041,000 | |||||||
Shares issued under the incentive award plan, Shares | 487,000 | |||||||||
Conversion of Class B Common Stock into Class A Common Stock, Shares | 67,000 | (67,000) | ||||||||
Ending Balance at Mar. 31, 2021 | $ 2,831,546,000 | $ 134,000 | $ 21,000 | $ 377,350,000 | $ (36,349,000) | $ 2,234,973,000 | $ 2,576,129,000 | $ 255,417,000 | ||
Ending Balance, Shares at Mar. 31, 2021 | 134,172,000 | 20,949,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities | ||
Net earnings | $ 114,509 | $ 41,160 |
Adjustments to reconcile net earnings to net cash from operating activities | ||
Depreciation and amortization | 33,008 | 39,559 |
Provision for bad debts and returns | 7,348 | 26,277 |
Stock compensation | 12,041 | 12,441 |
Deferred income taxes | (446) | (4,885) |
Net settlement gain | (13,877) | |
Net foreign currency adjustments | 6,015 | 6,513 |
Changes in operating assets and liabilities | ||
Receivables | (196,331) | (187,786) |
Inventory | (57,392) | 77,539 |
Other assets | 29,705 | 29,733 |
Accounts payable | 69,184 | (141,815) |
Other liabilities | (31,415) | (19,840) |
Net cash used in operating activities | (13,774) | (134,981) |
Cash flows from investing activities | ||
Capital expenditures | (84,237) | (74,887) |
Purchases of investments | (71,132) | (43,788) |
Proceeds from sales and maturities of investments | 49,905 | 42,418 |
Net cash used in investing activities | (105,464) | (76,257) |
Cash flows from financing activities | ||
Repayments on long-term borrowings | (46) | (107) |
Proceeds from long-term borrowings | 46,918 | 570,767 |
Proceeds from (repayments on) short-term borrowings, net | (2,159) | 7,912 |
Payments for employee taxes related to stock compensation | (5,659) | |
Purchase of noncontrolling interest | (9,928) | |
Contributions from noncontrolling interests | 14 | |
Distributions to noncontrolling interests | (14,865) | |
Net cash provided by financing activities | 34,799 | 558,048 |
Effect of exchange rate changes on cash and cash equivalents | (1,847) | (12,920) |
Net change in cash and cash equivalents | (86,286) | 333,890 |
Cash and cash equivalents at beginning of the period | 1,370,826 | 824,876 |
Cash and cash equivalents at end of the period | 1,284,540 | 1,158,766 |
Cash paid during the period for | ||
Interest | 3,992 | 2,000 |
Income taxes, net | 18,291 | 13,044 |
Non-cash transactions | ||
ROU assets exchanged for lease liabilities | $ 42,143 | $ 9,581 |
General
General | 3 Months Ended |
Mar. 31, 2021 | |
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, 2020 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 2020 Annual Report on Form 10-K. As previously disclosed in the Company’s 2020 Annual Report on Form 10-K, the duration and magnitude of the COVID-19 pandemic remains uncertain. The COVID-19 pandemic has had and may continue to have a significant impact on the Company’s consolidated results of operations, financial position and cash flows. 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. In March 2021, the minority interest related to the Hong Kong joint venture was purchased for $10.0 million. Other than the change in the Company’s ownership of the Hong Kong entity, which continues to be included in the Company’s condensed consolidated financial statements 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 and U.S. Treasury securities; Level 2 investments primarily include corporate notes and bonds, asset-backed securities, U.S. Agency securities, and actively traded mutual funds; 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 related to the refinancing of its U.S. distribution center (see Note 4 – Financial Commitments) classified as other long-term liabilities . 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, 2021, all counterparties to the interest rate swap had performed in accordance with their contractual obligations. Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, |
Cash, Cash Equivalents, Short-T
Cash, Cash Equivalents, Short-Term And Long-Term Investments | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 (in thousands) Adjusted Cost Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 866,621 $ 866,621 $ 866,621 $ — $ — Level 1 Money market funds 417,919 417,919 417,919 — — U.S. Treasury securities 22,551 22,551 — 8,362 14,189 Total level 1 440,470 440,470 417,919 8,362 14,189 Level 2 Corporate notes and bonds 138,507 138,507 — 93,422 45,085 Asset-backed securities 25,831 25,831 — 2,257 23,574 U.S. Agency securities 1,987 1,987 — 1,987 — Mutual funds 41,531 41,531 — — 41,531 Total level 2 207,856 207,856 — 97,666 110,190 TOTAL $ 1,514,947 $ 1,514,947 $ 1,284,540 $ 106,028 $ 124,379 As of December 31, 2020 (in thousands) Adjusted Cost Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 946,961 $ 946,961 $ 946,961 $ — $ — Level 1 Money market funds 423,865 423,865 423,865 — — U.S. Treasury securities 21,146 21,146 — 8,067 13,079 Total level 1 445,011 445,011 423,865 8,067 13,079 Level 2 Corporate notes and bonds 117,253 117,253 — 83,521 33,732 Asset-backed securities 28,253 28,253 — 5,498 22,755 U.S. Agency securities 3,681 3,681 — 3,681 — Mutual funds 38,846 38,846 — — 38,846 Total level 2 188,033 188,033 — 92,700 95,333 TOTAL $ 1,580,005 $ 1,580,005 $ 1,370,826 $ 100,767 $ 108,412 The Company’s investments consist of United States (“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. When evaluating an investment for its current expected credit losses, the Company reviews factors such as historical experience with defaults, losses, credit ratings, term, market sector 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, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | (3) ACCRUED EXPENSES Accrued expenses at March 31, 2021 and December 31, 2020 are summarized as follows: As of March 31, As of December 31, (in thousands) 2021 2020 Accrued payroll, taxes, and other $ 71,013 $ 104,004 Return reserve liability 77,675 77,219 Accrued inventory purchases 35,421 27,489 Accrued expenses $ 184,109 $ 208,712 |
Financial Commitments
Financial Commitments | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Financial Commitments | (4) FINANCIAL COMMITMENTS The Company had $37.0 million Long-term borrowings were as follows: As of March 31, As of December 31, (in thousands) 2021 2020 Revolving Credit Facility $ 452,500 $ 452,500 HF-T1 Distribution Center Loan 129,505 129,505 HF-T2 Distribution Center Construction Loan 36,532 22,169 China Distribution Center Construction Loan 78,302 77,501 China Operational Loans 80,497 48,743 Other 1,201 1,247 Subtotal 778,537 731,665 Less: Current installments (60,942 ) (52,250 ) Total long-term borrowings $ 717,595 $ 679,415 Revolving Credit Facility The weighted-average annual interest rate on borrowings under the 2019 revolving credit facility was approximately 1.37% during the three months ended March 31, 2021 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. As of March 31, 2021 and December 31, 2020, the unused credit capacity March 31, 2021 HF-T1 Distribution Center Loan T he 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 LIBOR 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. The Company’s objective in using the Swap Agreement is to stabilize interest expense and manage exposure to interest rate volatility. 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 2019 Credit Agreement. 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. As of both March 31, 2021 and December 31, 2020, the Interest Rate Swap had an aggregate notional amount of $ . HF-T2 Distribution Center Construction Loan The weighted-average annual interest rate on borrowings under the 2020 distribution center construction loan was approximately 2.02% during the three months ended March 31, 2021 China Distribution Center Construction Loan The interest rate at March 31, 2021 was 4.15% and may increase or decrease over the life of the loan, and will be evaluated every 12 months. Beginning in 2021, the principal of the loan will be repaid in semi-annual installments of variable amounts. The obligations of the China distribution center construction loan, entered through the Company’s Taicang Subsidiary are jointly and severally guaranteed by the Company’s China joint venture. As of March 31, 2021, the outstanding balance under this loan included approximately $13.9 million classified as short-term borrowings in the Company’s condensed consolidated balance sheets. China Operational Loans The balance of working capital loans was approximately $61.4 million with interest rates ranging from 1.73% to 3.65% per annum as of March 31, 2021. The balance of working capital loans as of December 31, 2020 was approximately $30.1 million with interest rates ranging from 1.75% to 3.92% per annum. |
Stock Compensation
Stock Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Compensation | ( 5 ) STOCK COMPENSATION INCENTIVE AWARD PLAN As of March 31, 2021, there were 5,121,800 shares available for grant as equity awards under the 2017 Incentive Award Plan. In the first quarter of 2021, 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 in relation to its peer companies as well as a financial performance condition tied to annual EPS growth. The vesting and ultimate payout of performance awards is determined at the end of the three-year The Company issued the following stock-based instruments: Three Months Ended March 31, 2021 2020 Granted Weighted-Average Grant-Date Fair Value Granted Weighted-Average Grant-Date Fair Value Restricted stock 406,250 $ 39.53 1,013,500 $ 36.96 Performance-based restricted stock 108,750 $ 38.95 — $ — Market-based restricted stock 108,750 $ 54.34 — $ — 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, 2020 3,112,023 $ 35.06 Granted 623,750 $ 42.01 Vested (487,550 ) $ 36.59 Cancelled (8,500 ) $ 37.31 Unvested at March 31, 2021 3,239,723 $ 36.16 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 that have 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. For the three months ended March 31, 2021 and 2020 , the Company recognized $12.0 million and $12.4 million of compensation expense for grants under the 2017 Incentive Award Plan. As of March 31, 2021, the balance of unamortized stock compensation was $92.9 million which is expected to be recognized over a weighted-average period of 2.06 . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
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) 2021 2020 Net earnings attributable to Skechers U.S.A., Inc. $ 98,573 $ 49,101 Weighted-average common shares outstanding, basic 154,818 153,555 Dilutive effect of nonvested shares 1,118 1,097 Weighted-average common shares outstanding, diluted 155,936 154,652 Anti-dilutive common shares excluded above 52,792 36,766 Net earnings attributable to Skechers U.S.A., Inc. per common share Basic $ 0.64 $ 0.32 Diluted $ 0.63 $ 0.32 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (7) INCOME TAXES The tax provisions for the three months ended March 31, 2021 and 2020 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 tax rate is subject to management’s quarterly review and revision, as necessary. 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 0.0% to 34.0%, which is on average significantly lower than the U.S. federal and state combined statutory rate of approximately 24.5%. The Company’s effective tax rate was 20.2% and 15.3% for the three months ended March 31, 2021 and 2020. The increase primarily reflects the increased profitability in certain higher tax jurisdictions such as China and the United States. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
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 also officers and directors of the Foundation. The terms of the sale were no less favorable than could be obtained from an unrelated third party. |
Segment and Geographic Informat
Segment and Geographic Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | (9) SEGMENT AND GEOGRAPHIC INFORMATION The Company has three reportable segments – Domestic Wholesale, International Wholesale and Direct-to-Consumer. Management evaluates segment performance based primarily on sales and gross margin. All 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 for the periods indicated: Three Months Ended March 31, (in thousands) 2021 2020 Sales Domestic Wholesale $ 374,665 $ 377,962 International Wholesale 712,175 575,199 Direct-to-Consumer 341,578 289,184 Total $ 1,428,418 $ 1,242,345 Gross profit Domestic Wholesale $ 139,924 $ 145,277 International Wholesale 320,781 240,475 Direct-to-Consumer 218,917 161,916 Total $ 679,622 $ 547,668 Sales (1) United States $ 602,117 $ 555,174 International 826,301 687,171 Total $ 1,428,418 $ 1,242,345 (1) March 31, 2021 and 2020, ales in China were $250.6 million and $91. . The Company’s sales to its five largest customers accounted for approximately 9.5% and 11.4% of total sales for the three months ended March 31, 2021 and 2020. The following summarizes the Company’s assets by segment and geographic area for the periods indicated: (in thousands) As of March 31, 2021 As of December 31, 2020 Identifiable assets Domestic Wholesale $ 1,971,630 $ 1,945,681 International Wholesale 2,616,429 2,436,568 Direct-to-Consumer 1,397,507 1,430,120 Total $ 5,985,566 $ 5,812,369 Three Months Ended March 31, (in thousands) 2021 2020 Additions to property, plant and equipment Domestic Wholesale $ 64,121 $ 11,818 International Wholesale 10,813 44,900 Direct-to-Consumer 9,303 18,169 Total $ 84,237 $ 74,887 (in thousands) As of March 31, 2021 As of December 31, 2020 Property, plant and equipment, net (1) United States $ 588,542 $ 535,648 International 403,970 399,793 Total $ 992,512 $ 935,441 ( 1 ) . 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 $3.7 billion and $3.1 billion at March 31, 2021 and December 31, 2020, respectively. 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 credit losses charged to expense for the three months ended March 31, 2021 and 2020 were $6.3 million and $1.5 million. The Company’s accounts receivables, excluding the allowance for bad debts, sales returns and chargebacks, in different geographic areas are summarized as follows: (in thousands) As of March 31, 2021 As of December 31, 2020 Domestic Accounts Receivable $ 314,131 $ 230,546 Foreign Accounts Receivable 532,173 437,816 For the periods presented below, the Company’s top five manufacturers produced, as a percentage of total production, the following: Three Months Ended March 31, 2021 2020 Manufacturer #1 18.6 % 24.9 % Manufacturer #2 5.0 % 7.5 % Manufacturer #3 4.8 % 6.7 % Manufacturer #4 4.8 % 3.9 % Manufacturer #5 4.3 % 3.7 % 37.5 % 46.7 % |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
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 as of March 31, 2021, 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. |
General (Policies)
General (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2020 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 2020 Annual Report on Form 10-K. As previously disclosed in the Company’s 2020 Annual Report on Form 10-K, the duration and magnitude of the COVID-19 pandemic remains uncertain. The COVID-19 pandemic has had and may continue to have a significant impact on the Company’s consolidated results of operations, financial position and cash flows. |
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. In March 2021, the minority interest related to the Hong Kong joint venture was purchased for $10.0 million. Other than the change in the Company’s ownership of the Hong Kong entity, which continues to be included in the Company’s condensed consolidated financial statements |
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 and U.S. Treasury securities; Level 2 investments primarily include corporate notes and bonds, asset-backed securities, U.S. Agency securities, and actively traded mutual funds; 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 related to the refinancing of its U.S. distribution center (see Note 4 – Financial Commitments) classified as other long-term liabilities . 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, 2021, all counterparties to the interest rate swap had performed in accordance with their contractual obligations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, |
Cash, Cash Equivalents, Short_2
Cash, Cash Equivalents, Short-Term And Long-Term Investments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 (in thousands) Adjusted Cost Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 866,621 $ 866,621 $ 866,621 $ — $ — Level 1 Money market funds 417,919 417,919 417,919 — — U.S. Treasury securities 22,551 22,551 — 8,362 14,189 Total level 1 440,470 440,470 417,919 8,362 14,189 Level 2 Corporate notes and bonds 138,507 138,507 — 93,422 45,085 Asset-backed securities 25,831 25,831 — 2,257 23,574 U.S. Agency securities 1,987 1,987 — 1,987 — Mutual funds 41,531 41,531 — — 41,531 Total level 2 207,856 207,856 — 97,666 110,190 TOTAL $ 1,514,947 $ 1,514,947 $ 1,284,540 $ 106,028 $ 124,379 As of December 31, 2020 (in thousands) Adjusted Cost Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 946,961 $ 946,961 $ 946,961 $ — $ — Level 1 Money market funds 423,865 423,865 423,865 — — U.S. Treasury securities 21,146 21,146 — 8,067 13,079 Total level 1 445,011 445,011 423,865 8,067 13,079 Level 2 Corporate notes and bonds 117,253 117,253 — 83,521 33,732 Asset-backed securities 28,253 28,253 — 5,498 22,755 U.S. Agency securities 3,681 3,681 — 3,681 — Mutual funds 38,846 38,846 — — 38,846 Total level 2 188,033 188,033 — 92,700 95,333 TOTAL $ 1,580,005 $ 1,580,005 $ 1,370,826 $ 100,767 $ 108,412 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables And Accruals [Abstract] | |
Summary of Accrued Expenses | Accrued expenses at March 31, 2021 and December 31, 2020 are summarized as follows: As of March 31, As of December 31, (in thousands) 2021 2020 Accrued payroll, taxes, and other $ 71,013 $ 104,004 Return reserve liability 77,675 77,219 Accrued inventory purchases 35,421 27,489 Accrued expenses $ 184,109 $ 208,712 |
Financial Commitments (Tables)
Financial Commitments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Borrowings | Long-term borrowings were as follows: As of March 31, As of December 31, (in thousands) 2021 2020 Revolving Credit Facility $ 452,500 $ 452,500 HF-T1 Distribution Center Loan 129,505 129,505 HF-T2 Distribution Center Construction Loan 36,532 22,169 China Distribution Center Construction Loan 78,302 77,501 China Operational Loans 80,497 48,743 Other 1,201 1,247 Subtotal 778,537 731,665 Less: Current installments (60,942 ) (52,250 ) Total long-term borrowings $ 717,595 $ 679,415 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Summary of Stock-Based Instruments | The Company issued the following stock-based instruments: Three Months Ended March 31, 2021 2020 Granted Weighted-Average Grant-Date Fair Value Granted Weighted-Average Grant-Date Fair Value Restricted stock 406,250 $ 39.53 1,013,500 $ 36.96 Performance-based restricted stock 108,750 $ 38.95 — $ — Market-based restricted stock 108,750 $ 54.34 — $ — |
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, 2020 3,112,023 $ 35.06 Granted 623,750 $ 42.01 Vested (487,550 ) $ 36.59 Cancelled (8,500 ) $ 37.31 Unvested at March 31, 2021 3,239,723 $ 36.16 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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) 2021 2020 Net earnings attributable to Skechers U.S.A., Inc. $ 98,573 $ 49,101 Weighted-average common shares outstanding, basic 154,818 153,555 Dilutive effect of nonvested shares 1,118 1,097 Weighted-average common shares outstanding, diluted 155,936 154,652 Anti-dilutive common shares excluded above 52,792 36,766 Net earnings attributable to Skechers U.S.A., Inc. per common share Basic $ 0.64 $ 0.32 Diluted $ 0.63 $ 0.32 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | Three Months Ended March 31, (in thousands) 2021 2020 Sales Domestic Wholesale $ 374,665 $ 377,962 International Wholesale 712,175 575,199 Direct-to-Consumer 341,578 289,184 Total $ 1,428,418 $ 1,242,345 Gross profit Domestic Wholesale $ 139,924 $ 145,277 International Wholesale 320,781 240,475 Direct-to-Consumer 218,917 161,916 Total $ 679,622 $ 547,668 Sales (1) United States $ 602,117 $ 555,174 International 826,301 687,171 Total $ 1,428,418 $ 1,242,345 (1) March 31, 2021 and 2020, ales in China were $250.6 million and $91. . |
Geographic Information | The following summarizes the Company’s assets by segment and geographic area for the periods indicated: (in thousands) As of March 31, 2021 As of December 31, 2020 Identifiable assets Domestic Wholesale $ 1,971,630 $ 1,945,681 International Wholesale 2,616,429 2,436,568 Direct-to-Consumer 1,397,507 1,430,120 Total $ 5,985,566 $ 5,812,369 Three Months Ended March 31, (in thousands) 2021 2020 Additions to property, plant and equipment Domestic Wholesale $ 64,121 $ 11,818 International Wholesale 10,813 44,900 Direct-to-Consumer 9,303 18,169 Total $ 84,237 $ 74,887 (in thousands) As of March 31, 2021 As of December 31, 2020 Property, plant and equipment, net (1) United States $ 588,542 $ 535,648 International 403,970 399,793 Total $ 992,512 $ 935,441 ( 1 ) . |
Summary of Accounts Receivables Excluding the Allowance for Bad Debts Sales Returns and Chargebacks | The Company’s accounts receivables, excluding the allowance for bad debts, sales returns and chargebacks, in different geographic areas are summarized as follows: (in thousands) As of March 31, 2021 As of December 31, 2020 Domestic Accounts Receivable $ 314,131 $ 230,546 Foreign Accounts Receivable 532,173 437,816 |
Company's Top Five Manufacturers Produced, as Percentage of Total Production | For the periods presented below, the Company’s top five manufacturers produced, as a percentage of total production, the following: Three Months Ended March 31, 2021 2020 Manufacturer #1 18.6 % 24.9 % Manufacturer #2 5.0 % 7.5 % Manufacturer #3 4.8 % 6.7 % Manufacturer #4 4.8 % 3.9 % Manufacturer #5 4.3 % 3.7 % 37.5 % 46.7 % |
General - Additional Informatio
General - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended |
Mar. 31, 2021USD ($)Derivative | Mar. 31, 2021Derivative | |
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Change in accounting principle, accounting standards update, adopted | true | true |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 | Jan. 1, 2021 |
Change in accounting principle, accounting standards update, immaterial effect | true | true |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201912Member | |
Interest Rate Swap [Member] | Level 2 [Member] | ||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Number of derivative instrument | Derivative | 1 | 1 |
Skechers Hong Kong Limited [Member] | ||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Purchase of joint venture | $ | $ 10 |
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 ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Cash and cash equivalents | $ 1,284,540 | $ 1,370,826 | $ 1,158,766 | $ 824,876 |
Short-Term Investments | 106,028 | 100,767 | ||
Long-Term Investments | 124,379 | 108,412 | ||
Adjusted Cost | 1,514,947 | 1,580,005 | ||
Fair Value | 1,514,947 | 1,580,005 | ||
Level 1 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Cash and cash equivalents | 417,919 | 423,865 | ||
Short-Term Investments | 8,362 | 8,067 | ||
Long-Term Investments | 14,189 | 13,079 | ||
Adjusted Cost | 440,470 | 445,011 | ||
Fair Value | 440,470 | 445,011 | ||
Level 2 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Short-Term Investments | 97,666 | 92,700 | ||
Long-Term Investments | 110,190 | 95,333 | ||
Adjusted Cost | 207,856 | 188,033 | ||
Fair Value | 207,856 | 188,033 | ||
Money market funds [Member] | Level 1 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Cash and cash equivalents | 417,919 | 423,865 | ||
Adjusted Cost | 417,919 | 423,865 | ||
Fair Value | 417,919 | 423,865 | ||
U.S. Treasury Securities [Member] | Level 1 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Short-Term Investments | 8,362 | 8,067 | ||
Long-Term Investments | 14,189 | 13,079 | ||
Adjusted Cost | 22,551 | 21,146 | ||
Fair Value | 22,551 | 21,146 | ||
Corporate Notes and Bonds [Member] | Level 2 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Short-Term Investments | 93,422 | 83,521 | ||
Long-Term Investments | 45,085 | 33,732 | ||
Adjusted Cost | 138,507 | 117,253 | ||
Fair Value | 138,507 | 117,253 | ||
Asset-backed Securities [Member] | Level 2 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Short-Term Investments | 2,257 | 5,498 | ||
Long-Term Investments | 23,574 | 22,755 | ||
Adjusted Cost | 25,831 | 28,253 | ||
Fair Value | 25,831 | 28,253 | ||
U.S. Agency Securities [Member] | Level 2 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Short-Term Investments | 1,987 | 3,681 | ||
Adjusted Cost | 1,987 | 3,681 | ||
Fair Value | 1,987 | 3,681 | ||
Mutual Funds [Member] | Level 2 [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Long-Term Investments | 41,531 | 38,846 | ||
Adjusted Cost | 41,531 | 38,846 | ||
Fair Value | 41,531 | 38,846 | ||
Cash [Member] | ||||
Cash Cash Equivalents Short Term And Long Term Investments [Line Items] | ||||
Cash and cash equivalents | 866,621 | 946,961 | ||
Fair Value | $ 866,621 | $ 946,961 |
Cash, Cash Equivalents, Short_4
Cash, Cash Equivalents, Short-Term and Long-Term Investments - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Accrued payroll, taxes, and other | $ 71,013 | $ 104,004 |
Return reserve liability | 77,675 | 77,219 |
Accrued inventory purchases | 35,421 | 27,489 |
Accrued expenses | $ 184,109 | $ 208,712 |
Financial Commitments - Additio
Financial Commitments - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 18, 2020 | |
Debt Instrument [Line Items] | |||
Outstanding letters of credit | $ 37,000,000 | $ 38,700,000 | |
Short-term borrowings | 1,138,000 | 3,297,000 | |
Interest Rate Swap [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate notional amount | $ 129,500,000 | $ 129,500,000 | |
Weighted-average fixed rate | 0.795% | 0.795% | |
Derivative, fixed interest rate | 4.08% | 4.08% | |
China Distribution Center Construction Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument variable rate | 4.15% | ||
Line of credit facility, frequency of payment and payment term | The interest rate at March 31, 2021 was 4.15% and may increase or decrease over the life of the loan, and will be evaluated every 12 months. Beginning in 2021, the principal of the loan will be repaid in semi-annual installments of variable amounts. | ||
Outstanding balance | $ 13,900,000 | ||
Other China Operational Loans [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding balance | 47,000,000 | ||
Maximum amount of credit facility | 61,400,000 | $ 30,100,000 | |
Other China Operational Loans [Member] | Shanghai | |||
Debt Instrument [Line Items] | |||
Maximum amount of credit facility | $ 19,100,000 | 18,600,000 | |
Joint Venture with HF Logistics [Member] | HF-T2 Distribution Center Construction Loan [Member] | |||
Debt Instrument [Line Items] | |||
Weighted-average annual interest rate | 2.02% | ||
Interest Rate Swap [Member] | Joint Venture with HF Logistics [Member] | 2020 Amendment Loan [Member] | LIBOR Loans [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument basis spread on variable rate | LIBOR Daily Floating Rate plus a margin of 1.75% per annum. | ||
Interest Rate Swap [Member] | Joint Venture with HF Logistics [Member] | Construction Loan Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate swap agreement date | Aug. 14, 2015 | ||
2019 Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Weighted-average annual interest rate | 1.37% | ||
Debt instrument unused credit capacity | $ 10,500,000 | $ 8,800,000 | |
2019 Revolving Credit Facility [Member] | Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Increase in leverage ratio | 4.25% | ||
2019 Revolving Credit Facility [Member] | Line of Credit [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Adjusted net leverage ratio | 3.75 | ||
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] | Interest Rate Swap [Member] | Joint Venture with HF Logistics [Member] | 2020 Amendment Loan [Member] | LIBOR Loans [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate of line of credit agreement | 1.75% | ||
HF-T1 Distribution Center Loan [Member] | Interest Rate Swap [Member] | Joint Venture with HF Logistics [Member] | Construction Loan Agreement [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 1.84% to 3.87% per Annum [Member] | Maximum [Member] | Other China Operational Loans [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument variable rate | 3.65% | 3.92% | |
Interests at a Range of 1.84% to 3.87% per Annum [Member] | Minimum [Member] | Other China Operational Loans [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument variable rate | 1.73% | 1.75% | |
Interest at 4.28% per Annum [Member] | Other China Operational Loans [Member] | Shanghai | |||
Debt Instrument [Line Items] | |||
Debt instrument variable rate | 4.28% | 4.28% |
Financial Commitments - Long-Te
Financial Commitments - Long-Term Borrowings (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 778,537 | $ 731,665 |
Less: Current installments | (60,942) | (52,250) |
Long-term borrowings, excluding current installments | 717,595 | 679,415 |
China Operational Loans [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 80,497 | 48,743 |
China Distribution Center Construction Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 78,302 | 77,501 |
Other [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 1,201 | 1,247 |
2019 Credit Agreement [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 452,500 | 452,500 |
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 | $ 36,532 | $ 22,169 |
Stock Compensation - Additional
Stock Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Performance-Based Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance period | 3 years | |
Performance-Based Awards [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payout percentage of performance awards | 0.00% | |
Performance-Based Awards [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payout percentage of performance awards | 200.00% | |
2017 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares that remain available for grant | 5,121,800 | |
Recognized compensation expense | $ 12 | $ 12.4 |
Unrecognized compensation cost related to nonvested common shares | $ 92.9 | |
Weighted average period for recognition of cost | 2 years 21 days |
Stock Compensation - Summary of
Stock Compensation - Summary of Stock-Based Instruments (Detail) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, shares | 623,750 | |
Weighted-Average Grant-Date Fair Value, shares | $ 42.01 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, shares | 406,250 | 1,013,500 |
Weighted-Average Grant-Date Fair Value, shares | $ 39.53 | $ 36.96 |
Performance-Based Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, shares | 108,750 | |
Weighted-Average Grant-Date Fair Value, shares | $ 38.95 | |
Market-Based Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, shares | 108,750 | |
Weighted-Average Grant-Date Fair Value, shares | $ 54.34 |
Stock Compensation - Summary _2
Stock Compensation - Summary of Unvested Shares (Detail) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Unvested, Shares, Beginning of Period | shares | 3,112,023 |
Granted, Shares | shares | 623,750 |
Vested, Shares | shares | (487,550) |
Cancelled, Shares | shares | (8,500) |
Unvested, Shares, End of Period | shares | 3,239,723 |
Unvested, Weighted Average Grant-Date Fair Value, Beginning of Period | $ / shares | $ 35.06 |
Granted, Weighted Average Grant-Date Fair Value | $ / shares | 42.01 |
Vested, Weighted Average Grant-Date Fair Value | $ / shares | 36.59 |
Cancelled, Weighted Average Grant-Date Fair Value | $ / shares | 37.31 |
Unvested, Weighted Average Grant-Date Fair Value, End of Period | $ / shares | $ 36.16 |
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, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net earnings attributable to Skechers U.S.A., Inc. | $ 98,573 | $ 49,101 |
Weighted-average common shares outstanding, basic | 154,818 | 153,555 |
Dilutive effect of nonvested shares | 1,118 | 1,097 |
Weighted-average common shares outstanding, diluted | 155,936 | 154,652 |
Anti-dilutive common shares excluded above | 52,792 | 36,766 |
Net earnings attributable to Skechers U.S.A., Inc. per common share | ||
Basic | $ 0.64 | $ 0.32 |
Diluted | $ 0.63 | $ 0.32 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule Of Income Taxes [Line Items] | ||
U.S. federal and state statutory rate | 24.50% | |
Effective tax rate | 20.20% | 15.30% |
Foreign Jurisdictions [Member] | Minimum [Member] | ||
Schedule Of Income Taxes [Line Items] | ||
Statutory federal rate | 0.00% | |
Foreign Jurisdictions [Member] | Maximum [Member] | ||
Schedule Of Income Taxes [Line Items] | ||
Statutory federal rate | 34.00% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2021USD ($)Property | Mar. 31, 2021USD ($)Property | Mar. 31, 2020USD ($) | |
Management [Member] | |||
Related Party Transaction [Line Items] | |||
Contribution to Skechers Foundation for various charitable purposes | $ 500,000 | $ 500,000 | |
Entity Controlled by President [Member] | |||
Related Party Transaction [Line Items] | |||
Number of purchased properties | Property | 2 | 2 | |
Purchases during the period | $ 2,700,000 |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Detail) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)SegmentCustomer | Mar. 31, 2020USD ($)Customer | Dec. 31, 2020USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 3 | ||
Credit losses attributable to expense | $ 7,348 | $ 26,277 | |
Non-US [Member] | |||
Segment Reporting Information [Line Items] | |||
Net assets held outside the United States | 3,700,000 | $ 3,100,000 | |
Credit losses attributable to expense | $ 6,300 | $ 1,500 | |
Sales [Member] | Customer Concentration Risk [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of largest customers | Customer | 5 | 5 | |
Percentage of concentration risk | 9.50% | 11.40% |
Segment and Geographic Inform_4
Segment and Geographic Information - Segment Reporting Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Sales | $ 1,428,418 | $ 1,242,345 | |
Gross profit | 679,622 | 547,668 | |
Identifiable assets | 5,985,566 | $ 5,812,369 | |
Additions to property, plant and equipment | 84,237 | 74,887 | |
Domestic Wholesale [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 374,665 | 377,962 | |
Gross profit | 139,924 | 145,277 | |
Identifiable assets | 1,971,630 | 1,945,681 | |
Additions to property, plant and equipment | 64,121 | 11,818 | |
International Wholesale [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 712,175 | 575,199 | |
Gross profit | 320,781 | 240,475 | |
Identifiable assets | 2,616,429 | 2,436,568 | |
Additions to property, plant and equipment | 10,813 | 44,900 | |
Direct-to-Consumer [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 341,578 | 289,184 | |
Gross profit | 218,917 | 161,916 | |
Identifiable assets | 1,397,507 | $ 1,430,120 | |
Additions to property, plant and equipment | $ 9,303 | $ 18,169 |
Segment and Geographic Inform_5
Segment and Geographic Information - Geographic Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Sales | $ 1,428,418 | $ 1,242,345 | |
Property, plant and equipment, net | |||
Property, plant and equipment, net | 992,512 | $ 935,441 | |
Domestic [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 602,117 | 555,174 | |
Property, plant and equipment, net | |||
Property, plant and equipment, net | 588,542 | 535,648 | |
International [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 826,301 | $ 687,171 | |
Property, plant and equipment, net | |||
Property, plant and equipment, net | $ 403,970 | $ 399,793 |
Segment and Geographic Inform_6
Segment and Geographic Information - Geographic Information (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Sales | $ 1,428,418 | $ 1,242,345 | |
Property, plant and equipment, net | 992,512 | $ 935,441 | |
China [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 250,600 | $ 91,000 | |
Property, plant and equipment, net | $ 245,400 | $ 241,600 |
Segment and Geographic Inform_7
Segment and Geographic Information - Summary of Accounts Receivables Excluding the Allowance for Bad Debts Sales Returns and Chargebacks (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Domestic [Member] | ||
Segment Reporting Information [Line Items] | ||
Accounts receivable | $ 314,131 | $ 230,546 |
Non-US [Member] | ||
Segment Reporting Information [Line Items] | ||
Accounts receivable | $ 532,173 | $ 437,816 |
Segment and Geographic Inform_8
Segment and Geographic Information - Company's Top Five Manufacturers Produced, as Percentage of Total Production (Detail) - Cost of Goods, Total [Member] - Supplier Concentration Risk [Member] | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Percentage of Total Production | 37.50% | 46.70% |
Manufacturer One [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of Total Production | 18.60% | 24.90% |
Manufacturer Two [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of Total Production | 5.00% | 7.50% |
Manufacturer Three [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of Total Production | 4.80% | 6.70% |
Manufacturer Four [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of Total Production | 4.80% | 3.90% |
Manufacturer Five [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of Total Production | 4.30% | 3.70% |