SKX - Earnings call transcript Q4 2024

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Operator

Greetings, and welcome to the Skechers Fourth Quarter and Full Year 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to turn the call over to Skechers U.S.A., Inc. Thank you.

You may begin.

Unknown Executive

Good afternoon, everyone. Skechers and joining Earnings Year for Call. Conference you Fourth Full Quarter XXXX Thank Jason ], [ the is name My Dees team at cybersecurity and here Skechers. engineering lead I favorite from our basketball the XXXX, company I've Skechers' the been ] and line. with my SKXflow [ style since is

Joining us Chief are call Operating and Weinberg; David on Officer, Financial today's Chief John Skechers' Officer, Vandemore.

of expressed will company's of or quarterly any or reports XX-K performance by forward-looking results, current statements and to company's safe Before including, with such filed the on the report reports refer unknown future occur. Please made its today's These statements on we the risks, future beliefs, There SEC, Form XX-Q achievements actual of annual assurance implied for including statements no on to Form forward-looking our statements. the to I flows more results may begin, and and forward-looking the other addressing on remind company's David and certain results plans, factors, and I Weinberg. everyone which cash these statements may call of that affect over without limitation, information can financial turn conditions, operations. With Chief risks be on company objectives, business, contain events. the would and the to expectations, its uncertainties Operating expectations cause statement. that known Certain based Officer, like from statements materially and the uncertainties would involve that, actual call Skechers' like results harbor and estimates differ to

David Weinberg

a marked and categories milestone expansion year conference in innovative $X.XX, significant our earnings growth was delivered today operating the publicly XX% share margin performance of of fourth you of us and and a also margin double-digit of on year and constant XXth by strong worldwide. full recording the and products and Skechers diluted increase, financial another as increase thank year per marked of profitability, basis, while XX.X%. afternoon, billion, XX% sales Good traded gross $X history, new XXXX strong representing launch our a into It for XX.X% a currency a company. On over for Skechers, joining a call. achieving quarter our

to We quarter million X.X $X.XX. our a sheet. of during constant We healthy sales approximately through return repurchase of value and while a share the to also of shareholders currency shares note, ended strong on earnings per year maintaining fourth achieving continued year $X.XX billion, balance a the

domestically reported of as Our in performance well in with the growth direct-to-consumer, internationally. wholesale as broad-based XX% was and growth XX% sales growth X% XX% in quarter and

we've and upheld over of delivering For affordable X decades, style, our price. an at innovation core principles quality comfort,

we for markets available the are evolving and Elite drive with and commitment expanded footwear basketball the We We debut recognition with and athletes core, gain introduced globally. focused performance and the as of Pickleball have while apparel world-class in XXXX, strategically You our over [ Academy XXXX, available following of global and needs expanded Skechers' and legitimacy. In which ] Skechers the [ to this and broaden evident And past Cricket maintained of to pitch, offering to major established year on global demand. This these and soccer reach field, year. basketball we into sports now Skechers' we styles we soccer initially while category partnering and worldwide. India on momentum meet ] the deliver our to our the innovation again for trail. was Building adapting customers comfort green

League's, Sunil ] Ikar League Kudus roster Alanga Lazada and to as Henderson, [ Anthony Legos provide professional golfers Super Jackson. ], [ These of athletes the [ and ]; Matt footwear. In as Chetri others. Turkey's include of [indiscernible] athletes ]; we valuable comfort athletes WNBA Major players, XXXX, best La technical [ and Pickleball [ and FitzPatrick ] in Premier [indiscernible] on Our player Mohamad NBA in Pros, [ best our feedback development performance expanded Parental [ ], ] ] elite Indian baseball and player, [ join our National Brooke Star Tyson ] Clayton League and McGuffin [indiscernible], Kershaw Catherine [indiscernible], well among and and [

into and ] year. Leveraging commitment with [ to the beyond countries Additionally, we that and successful Bacia comfort needs we performs footwear building and more signing signature slip-ins a including players Rolling Mumbai Indians are and co-branded the well from and cricket announced performance Skechers technologies, this collaboration evolving the with as tremendous with extend product base. Further, see to Deere our unique to expand opportunities enhance ] Yastika new and reach of we the expertise collections of Stones. unlock consumer partnerships our our Arch technical with These Tishan meet Ishan, offering Free opportunities Hand Martha our and Stewart include innovative portfolio. and John new the to athletes Dog, Fit, designs, ], cricket Snoop on soccer [ Skechers accounts offering, our pursuing existing footwear as market [ joining focused and global

We and unconventional product are broad-based as engage television, perimeter as voids, traditional digital such stadium social on buses and across more. and continue and much airport magazines presence as media, to newspapers, well new to our These and security diverse areas featured offering existing linear trains, with campaigns support mediums customers.

] Howe [ Howe [ as efforts marketing talented roster footballers featured Mexico, in [indiscernible], others. Southeast Asia; diverse Pons David [ as that singer ], and Bismol like La Burke, [ Brook Singer, influencer, Lele and ], Spanish and regional well our Martha K-Pop Frank European Mandel, in lifestyle Stewart [indiscernible] among ambassadors ], former Buff includes Fabio Long, Canaveral Our Jamie

celebrate regional his able Andy We Kansas for as airing commercial our grow awareness should in Bowl their in store Coach, and purchase a and in we also direct-to-consumer on comfort. Believing an Canada, across our Building hands-free key shopping business with choice, partnered destination of and this wholesale drive to planning with media Super enhancing opinion further our we're impactful history an with moment to performance need be with year, leaders social Chiefs City are memorable platforms. Skechers campaigns influencers footwear shop-in-shops the takeovers. brand we in our impactful first and our consumers interactive experience in of business manner Reid,

globally. focused that distribution and network for ensure intent We enhancing products to are purchase us on are enabling our greater deliver innovation, and reach, drive more our available efficiency

at Looking fourth more in detail. results quarter our

$X.XX India, South with geographies continued United XX%, In partially strength in regional Korea States in was increased across strength Thailand. and by We This And EMEA the XX%. and XX% growth double-digit record decline quarter sales driven Our XX% and international Japan, APAC, Americas of growth reflected in Canada. with which by fourth of a and across in billion by improved saw of rose markets. breadth sales nearly led Domestic channels. the offset growth in China. X.X%, all

However, will established XX% to destinations to our network shopping that the return growth gives recovers. Wholesale and and confidence diverse market increased as portfolio product internationally. and of increases we XX% stores due us domestically of retail online XX%

wholesale, continued for across for our in Within saw increases products, across product reflects growth nearly all Our domestic resulting men, continued many lines wholesale demand demand international in our products, growth footwear for innovative we double-digit our markets. technology and which strong comfort women the kids. resulted

X.X%, international direct-to-consumer with segment. X.X% improving domestic Sales our and increased to Turning X.X%.

increase saw period, growth including with selling market, holiday important nearly we China. the shopping every For an in-store in

For both and by double our while EMEA impacted digits, Americas was China. e-commerce, the the in improved negatively APAC challenges

in areas concept stores, and of our ended quarter reach, product the big opened both stores company-owned XX to United in big continue and the and outlets stores in the locations, including stores and of branded Colombia Canada, Mexico. in awareness in and Skechers locations United global With We China, high-traffic are States, purchase which box XX locations including with stores the States. X,XXX Skechers X company-owned X,XXX and drive quality XX malls, in breadth and worldwide, XXX intent. We the quarter, each box

company-owned XX the stores and X in company-owned in We third-party in quarter. Also period, Philippines, total including our in in We Indonesia, the in Australia the stores X China, our of first opened, XX our end in in are to and third-party in China and also stores the XXX closed X first in XX count store Prague. States. each quarter first we've opened South in which note, Also brings X closed to at third-party and X,XXX. In United stores India, store China. the in date, quarter XX of XXX stores, This Africa. X Malaysia opened company-owned

largest We our X relocated concept store location, is Edmonton including pickleball. basketball for indoor our and now includes both and courts Mall also which West stores,

building and manage in include and the demand more additional our stores turn product our We these expected XXX to United John to expect our perspective, details an over to offering XXX Europe to XXXX. From our and on markets, expanding worldwide investment the for continuing efficiently to to while deliver product and in like Skechers results. footprint an our direct-to-consumer China now more priorities capabilities. And amplifying centers in distribution growth open States, call financial the strengthen company-owned our I would creation

John Vandemore

comfort Thank another rooted everyone. our outstanding you, David, which our proposition. technology and year we in compelling as XXXX, is of algorithm, innovative delivered value against and continued afternoon, good in growth Skechers long-term results products a executing

margin and of of XX%, sales were an an year, XX%. we currency of the increase per of earnings full billion, For Skechers XX.X%. a margins share and double-digit $X.XX obtained increase constant XX.X%, operating achieved of $X.XX, Gross

During XX% where and which quarter, currency after headwinds, up strengthening $X.XX. to particularly of resulted share U.S. XX%, exchange to the impacted fourth in reported the significantly sales rose grew the elections, unfavorable U.S. billion, $X.XX the per foreign earnings dollar results

accomplishments strength in rebound Our in abroad, noteworthy. region. XXXX wholesale the are to particularly sales From the incredible domestic EMEA

steady growth domestic following saw growth our of XX%. channel, last year's we addition, direct-to-consumer impressive in In

challenges regulatory disruptions the Sea abroad. difficult environment the crisis, considering and from experienced remarkable standards supply in resulting including throughout new is the China, macroeconomic chain this of All the we year, Red

and as to is made diversification global performance the have accessibility as effectiveness products. investments Our to of technology a awareness we our well our increase Comfort testament for the

throughout online in sales sales reported was to key year, XX% to and growth holiday across strength shopping channels. The robust with delivered both XX%, X.X% of across period increased in offset grew partially markets, XX%, by of marketplace e-commerce sales Turning quarter combined and demand for sales most billion. of the result China. International billion. sequential driven who billion, our domestic retail improvements and and International last by brand affordable Domestic the markets the X.X%, illustrate XX% with of to results array year-over-year comfortable of X.X%, increase $X.XX choose compelling continues $X.XX and by consumer Skechers and our grew products. sales results sales in quarter, reflecting characterized as year-over-year increased stores. XX%, the the $X.XX increased Skechers to growth healthier quarter most geographies. improved channels. strong resiliency growth following with Domestic a the consumer segments Direct-to-consumer an sales the Skechers sales sales These wholesale grew footwear. Wholesale double-digit fourth across in

Now to across nearly by for sales. and the the to in prior Americas, million. year to Asia fourth every increased sales steady businesses. In the strength wholesale regional double-digit business market. our growth the In quarter direct-to-consumer direct-to-consumer by our driven increased increased EMEA, domestic in in Pacific, to year-over-year growth our and $XXX.X driven billion, million, In versus XX% $X.XX $XXX.X sales sales channel turning wholesale year-over-year XX% both X.X%

And points as led macroeconomic market. China sales the robust fourth of percentage expenses well our a across to channel every China, was declined to primarily a primarily an points navigate mix. sales prior XX challenging XX%. versus compared XX%, expenses XX% strong excluding a to the higher the strength year. administrative of environment Gross X.X%, India quarter about double-digit the to on XX.X%. distribution However, due we educate XX were year points as full sales spending was last to of sales categories. of in Skechers and quarter year. percentage by of XX.X%, nearly prior for operating to favorable decreased by and lapped driven basis continues from awareness expenses compared brand a increase year, XX basis outside XX.X%. Selling to for sales $XXX.X a Pacific expenses. Earnings decreased a XX quarter as last points as up increase year, XX.X%, million, our the another other compared services basis leverage year-over-year to X.X%, percentage new in consumers margin the operations to Operating improvements decreased General prior with of achieved margin as delivering basis in Operating grew year and to comfort channels margin as and building and technologies X.X% gains Asia

quarter, represented the million expense other As $XX.X reflected year. unfavorable exchange rates item mentioned of and during P&L, the the currency $XX.X prior impact compared our million an increase the foreign to in totaled of earlier, of which is line

Our the was quarter effective reflecting losses. impacts jurisdictions in in tax currency tax year, a fourth mix and foreign XX.X% rate prior for of compared XX.X%, the lower earnings to favorable from

compared For the rate was full to prior tax year, XX.X% year. in XX.X%, our effective the

for further per weighted $X.XX prepare regulations an Earnings a in be consideration global prior outstanding. implementation the to on address minimum XXXX, we compared As share, of were XXX.X will tax increase will share XX% which shares per we guidance. the diluted our million important average diluted year

year. quarter inventory a sheet. of was per a share from were of to openings million In-transit improved inventory the or to our in $X.XX Canal, infrastructure, related Capital million, shipping in now billion distribution earnings billion, China, receivable prior at $X.XX remains turning in XX% billion $XX.X $XXX.X cash, higher Accounts of related million to cash including increase XX%, increase maintained the on constant to our facility. wholesale compared technologies, elevated, of sequentially. an of prior balance currency $XXX.X of reflecting our investments investments related to representing However, increased sales. We we and basis, $XXX when $XXX.X year-over-year. And the quarter year, the and times $X.XX, our revolving the million, compared $XX.X Inventory liquidity and million ended million, were an to actively with continue closure expansion the in $XX.X manage to Suez equivalents credit expenditures for which to quarter end million EMEA store increase and offices. particularly the direct-to-consumer new due our corporate $X.XX enhancing and were levels which

for we quarter, a approximately of A approximately at a shares the And million we repurchased at X.X the shares $XXX common repurchased cost million. stock year, During approximately cost of $XXX X.X million. million our of Class

durable with stated balance while ample philosophy, continue our a maintaining We and to deploy capital our liquidity. consistent sheet

turning guidance. Now to

emergence XXXX, several faced we foreign weakness As the and currency begin global tax length and unfavorable the continuing minimum of in the of macroeconomic rates, we China. including uncertainties, headwinds regulations and depth exchange

combination of certain has the recently concessions will China addition, guidance, have actions, fully including impacted In announced yet likely comprise tariffs goods U.S. we visibility. potential response pricing. incremental on not the factored from and our our it into impact while and their following And vendor a of the reallocation production,

reflecting rates, sales is For minimum XXX adjacent be to X expansion center the the support tax feet, approximately expenditures as to between Earnings to be organic impacts to and per remains and growth, further million in to center share decline growth operational and well application be the to be to million ongoing of end $X.X of the continued impact distribution invest expected foreign is early year year China, for reflects the of strategic be are $X.XX the to as expansions is currency continue includes range with anticipated America both as which which priorities. range the and regulations, are the to million interest to XXXX. to precise we for North mid-teens between This XXXX, distribution is capital global $X.XX, $XXX of the minority expected on billion our including of an exchange rate at although in a of tax operational prevailing assessed. The expected be full or XX%, square to we which to expect rate. year, our $XXX in effective our in XX% sales upcoming expected elevate basis Based anticipated rate $X.X XXXX, diluted million roughly billion. this foreign currency points, $XXX headwind exchange our

of quarter, demand taxes sales For as as per net in impacts we the in reflecting $X.X the and $X.XX of to first the spending. expect well share range pro to elevated roughly currency and share a foreign range billion rata aforementioned $X.XX, earnings some billion, of from creation $X.XXX the

presents time our delivering turn we style, at consistently to for while reinvesting year expect unknowns, on and updating business they strategies long-term We ahead the will sustainable thank for that, remain growth, consumers in you a in your the many to you and and results, Thursday, price. quality first reasonable committed XXXX. With remarks. release all the today comfort call on which confident our desire profitable While now to for quarter XX, April look we forward I financial over David to and our closing

David Weinberg

diverse constant robust to The annual to quality attainable and strength market for combines differentiated is attributable on at The demand a style billion an in new price. product global our sales led rate. our a position of our John. record innovation, that currency you, $X business comfort, Thank

with continue our Skechers existing performance our footwear advance Cricket to the India. We of as comfort Skechers to collections in latest technologies our offering, slip-ins from product as extensions well across hands-free our innovation expanding including in addition portfolio,

on of core growth marketing will team the includes believe soccer, our our exceptional will an and capabilities our sale dedicated increasingly our and ball our While and notable we of customer and by This Europe, needs profitable operations. continued believe through investing expansion retail worldwide, U.S., in remain executed business, through meet years story in achievements of with now an in centers performance delivering result direct-to-consumer with division consumers operational plans the of ] in evolving valuable the are experience strategic increasing come. to distribution partnerships. in China and channel, our our the product, points We our we globally. To improved footwear future, running pickle become focused golf, our we both [ the operational growth important part our and basketball,

entire are As always, organization. of grateful contribution we for the Skechers the

operator the like call questions. for I over turn to to the Now would

Operator

UBS. question And comes [Operator our with Sole Instructions] from first Jay

Jay Sole

for quarter. on first thanks giving in the John, 'XX and so much guidance David

a Just detail. looking for little

If it for what gross you're 'XX, thinking kind when should of margin? think comes about to about fiscal outlook margin gross modeling we

John Vandemore

Yes.

a in realize look regulations pretty is in the on rate guidance, which at a is to on definitely the going of take elaborate minimum to lot First something try encourage significant is we the all, a I everyone would I global bit. tax The year. there's why tax emphasis

cognizant certainly something be that's of. to So

starting rest level say in look we're years wholesale we proud channels, we're gross X last at one a think I business accretion look the anticipating gross looks would not the mean a change Right margin, the through and growth. margin, product I direct-to-consumer. -- delivered most of overall. if but things through business at of carrying the gross as the over we've balanced the in I of is and then margin in our we material in now, fairly the

So we historically, talked before strong emphasis us. but that we've and accretion international DTC across see good that of channels that's incremental much as a because not on might we're about thing from seeing the growth the

we need Now shown ability I do year. margins. in we unfurl in are say ] the the and throughout But that fully for these some more we announced going tariffs the believe to will how may [ the defend have to Certainly, we understand have recently quarters, fluctuations. see to the compensate and past

we've X on should anything last overall, say, else, offer continued years. a for basis. But gross the than to margin may opportunity year some small variability made overall. more There looking a So stability be the the improvement over appreciate think we us I quarter-to-quarter would

Jay Sole

sounds That right. great. All

a information answer. was in there lot So of that

DTC seeing you've going balanced that geographies. growth been saying also the channels to maybe across and across mix also This basically year, You're international. to and impact see you're

margin -- of saying, basically sort think like the correct? you're last think, kind we of sounds is what the one John, that's I it should similar So of if -- I'm about gross reason year,

John Vandemore

Yes, that's absolutely right.

Operator

comes Vasilescu next Laurent BNP Paribas. from our question with And

Laurent Vasilescu

the margins. know up I it about to wanted down but on Jay's I it like looks might you to be EBIT like it about don't XXX I be John. guide from, year David, to But question operating implies modeling this John. basis points. margins follow margins, for looks --

of answer in margin? with I'm flattish, is the margins Jay. gross there to is this the that to something the somewhat away pressure trying So SG&A going square operating are be to to source a If

John Vandemore

sounds to think a I that us. bit much

obviously be the We're Our to that push margin. factors operating were also recently we in in is do exchange. monitoring particularly we and obviously reflecting down quarter, this China objective on achieved sustain double-digit business around sequentially, as pull managing And that. way. know and we in foreign that be control, going aggressive it material some we a don't that inventory There's this to quite was to want

a going time FX would I that to mentioned that and I saw that think So it don't there, some move we this in to than our our control expect rate bit that would flat. we're cooperation If delivered of in is to factors we an are at suggest be a be what that, we rough. beyond get goal will year. And that indication again, what point off situations If materially guide forward, be we in probably kind our I are China. this different you is that objective sounds like there that need from some to consider. sustain to but

Laurent Vasilescu

it lap a hit I bit those helpful, to fiscal given a wholesale, $X.XX then John. housekeep so of fourth question was assumption long-term Do was a lower from for to the FX the great grow actually that know be this channel kind target year? another you on a you've could just then the growth Very that that XXXX, mid-singles. And rates surprised I Is Okay. quarter. than U.S. little FX. that? And right quarter.

spot? guide Just to FY 'XX current What and understand with of what's quarter embed is on terms the in your implication? FX EPS first

John Vandemore

domestic for pretty challenging marketing, fantastic by backed of to a our deliver a phenomenal. the one here mentioning we've I'm did to go worth a and more rebound side the that tremendous entire out seen wholesale on was delivering that's team first that. than I back job the we is pretty mentioned you think saw very again thanks because product And Laurent. I rebound question, year, excellent and would and this the the wholesale and great year sure a say, on like foremost, team certainly,

look as mid-single-digit think that down I you to towards kind a year, longer-term number back gravitating for of we're start I this do growth to of believe going wholesale. horizon

I'd there. So There's also than that. better opportunities number consider. a to obviously, that's pushing certainly to But say good we're do out

this wouldn't it's like to I market That's such at amazing. this be if we little would hard going So And not a year. What be year is current fantastic, that the shocked growth. duplicate that environment any above wholesale last of it's pretty XX% bit where be had to in nearly this point.

It As tell you abroad. hit. again, hit you, sheet look get denominated $X.XX the very in as levels this that those difficult on It's in dollar would beyond a that's look we elections, right over a a project of there where quarter weaken would And items think why of short to note, U.S. U.S. was we and quite an currencies the from from. lot are that perfect because and period move know $X.XX simply it's where fourth well. going extraordinary very why I'll and sizable and going U.S. as the order pretty high be the environment. transactional comes don't impact. expectation I the single-digit were is fairly probably now the next that of -- the down strengthening to that's to between revenue in our saw accuracy I pronounced of much foreign be presumably come year, remeasured. exactly with balance currencies of And relative to frankly, And the dollar, impact all the after currency FX And the that to forward. that's didn't so us instances, going some is all a it's are time. impact at the to having we how from a

to impacted turn impacts the the EPS if Now had need you well is when earnings below on of were But short we'll mentioned. also I you the FX, were things see which on extraordinary benefit it and But side above from side. look what share guided. the to the term, why previously as-reported both can adjust we us headline think the we -- in Certainly, the on per results around. that, for that you sales we

notice So sizable was recognizing that material us on I to and think impact with deal short important. for a fairly that, is

David Weinberg

Yes.

You balance even sheet don't doesn't any that the should currency items also get note better. the replicate if

to sheet we're the balance profitability. and go away. items The volumes of the So really impact some about talking

So little away and back. it as some issue takes of the you a bit gives come upside they

Operator

question next with Stanley. Our Alex from Morgan comes Straton

Alexandra Straton

I on just quickly focus decelerated the like It of business. wanted to quarter-over-quarter. a looks international part revenue bit the

year? for there? forward? you're So just does next should to trying understand something As is something change, changed well if on something what that just as that then we assuming XXXX? And going secondly, change tax this Or assume

John Vandemore

Yes.

maybe X geographies, X what On down was the Really quarter, the China, particularly gave was strength or very broad across of our across geography. mentioned it about international other markets, and was a comment prepared think XX%. the to side within things, this in absent remarks, I we on quite David frankly, China saw, channels the drag. you We across world,

very, some to robust say you, delivery that we table due for even very little anything frames that international weren't felt a market achieved. left So would I bit us. And the would the I time tell on

So we impact, to particularly size be its this China where and feel the disproportionate in international quarter really good going. Asia in it's region. about the -- Pacific where gives scale challenge that and the the us was continues

be swing factor. still a going digits, forward year, that's single level. look I mid- to expect high We teens to maybe think to we the As the

Some of that's impacted FX be to going though.

the around million So headwind going Obviously, it to when was into you think about only that a applies probably the overall, FX $XXX the we mentioned market. impact year. international

materially we'll move impact that So the as a tailwind as it's along it here, dollar we view or if extent change year be a go bit rates a back throughout stands the gets from update now. would to the because that And heavy right little weaker.

On the globe. new that's global tax in across that's the minimum going regime a tax,

efficient you've tax minimum you about And I apply much is but just matters curve this on jurisdictions historically. the we which global think because OECD's earlier they a that we're be talk and how very tax, with been the to leveraged global event. all very probably it going have

some see chatter You've lot some in well. The from take it do a and XX%, rate. push to are our measures definitely going up forthcoming below subject the near base no a just heard But established, to of -- that and administration pushes rate. We're as term, regulations going haven that about it almost that's And other it. dissatisfaction to the become there's administration, and companies likely mitigate we're is but it would be one about of stands, it going going regulatory kind to to to that recent naturally going I some some you're pulls. the to as in caveat be will think way

see we'll now of regimes that. there's prior But the into effect. any minimum supporter big they're and administration So coming was on a change if global tax

Operator

And our Adrienne next Barclays. with question comes from Yih

Adrienne Yih-Tennant

what the sort you about do there? And one big would region. of signs in higher that thought any actually I talk you you that's doing to anniversaried a tariff? you mitigate is, Asia stabilization? do you us last phenomenon remind quite mentioned [indiscernible] there sort can you I of my had bit us -- -- you had know you year, creation, inventory, see on China of to little John, like strategies you where are if when bit demand quite a direct sales have just mitigation the final of are where What where going? And and creation. then supply-demand Great. a a the can, if of then the demand you're going can

region, the can U.S., APAC probably not to remind us, what of just into there make be redirected So the half please. you but probably

John Vandemore

of sure pretty going you one questions. I'm have Okay. I'm repeat those to

with first about Let a to the talked conversations I that. And apply talk and avoid we're situations, have years and certainly some about for X ironically was involves strengthening we'll our long we structures. And -- foreign tactics. respects, helps tariffs, about this And we which redirecting the for same price. dollar to was some time in because origin tariffs tariff about that me ago. to talked going then last assume time at going coming. We've We're relationships exchange employed strategies look the go optimize with vendors. In to manufacturing

of have forward more effect these if the us things happens, to worst in stay think available tools all severely. those and if I be or to go rates case

those. we're to prepared with deal So

We will those. deal with

on a these approach rates. time is as of apply. we the quickly. But we And change inventory seems the those and like if have little to to because do, relatively have seen, policies it higher can they cleared We that's -- bit it won't subjected going hand be we're we've today

say, it's of are aspects success timing certainly the would a probably difference focused in bit to of our bit last On spot material around the little have our categories up a won't the see do strategy the products. good comfort ultimately, first this which we year, and incremental a a free. a overall, and little We coming weighted very the isn't technology the new year, on reinforcing say was within other more would a I on. we're quite our desire on heavier marketing unfortunately But frankly, I year weekend, messaging you but quarter. the be saw marketing, What spend. early

I all event. particular is not is a think diligently shoes address your to last China. styles. stepping they working This macroeconomic one this of Look, to one there category market. very or brand question can in the the back, But we or of or brand one what team recognize category I think was about is should

we demand we've overall still that of to and move probably will in to marketing the be beholden China to we little some sure some already exciting of than eye just inventory a to ultimately attempt right a free how put market be as And been talked We necessarily the well our we that. of about easily. And might. from for comfort the perspective, to of our for spur around good have have year, awareness lot an inventory we us we we go into requires in good a a forward the strategies position awareness And that to there technologies got in plans some with be market make in the also the bit quarter. able a quarter messaging room market. fourth But getting last did little tough will fit process do course looking a little it's think from perspective. a can given that so back And at to more to of make in an bit over towards of very bit that in be the of with that way. the the first quicker market. We've stays fresh that the that going time flow is new We'll where improvement started of this the

David Weinberg

has been in add like where other States outside out world come both than the and like businesses went of We've in larger places been changes, had situation. always our also situations in I'd India, to the tariff dealing as there one midstream, we've we've a Mexico, United America, we the just business, tariff Europe, South change better in. of we are international and with on parts the

So end. I what situation of one have is moved It where price we have would taken necessary. our and we tell going core you to that is while the production you competencies, know never and

to product can continue that a features products. have in carry basis more regular that We a that increase develop on

there and volumes a being if new year reinforce as in the the year. a because for and that because we taken develop hit for we I world we've throughout as we'll XX% think our our on keep seen, down. position not a we and this to world, product to concerned, if significant projection the continue grew in step this creation of growing far easy through to up move and the worst China. growth, China were and specifically any the to And coming are to we've new would first around in place important one in growth quarter we have it second in and include without doesn't support China, year an know the So well. And our the as ones product any, it to go. lick quite come to anybody while to growing. I China advertising that be we've it especially ago, demand year tell forefront, think past it is of the in We uneasiness decided and just is And as it's cut consider you that overly mean, look Chinese-oriented. -- we're where But

strength brand it it's shows the just So the and of moving there. how you

uncertainty. we think a a there though I lot as into of all place that even is this us puts comfortable very So good year, go of in

Operator

John our Kernan And from comes TD question with Cowen. next

John Kernan

rate think the at on going frame of you the curious lot sales, run are X%. spend closer closer to is Just the of X% on talk your this CapEx end. and that's $XXX A I million what to to normalized Can is? I us high where think. about peers

is going curious this at where just So is this to how remain going and long level? this

John Vandemore

campus Yes. had years, off think two the investment bite that center you our ongoing. would the those to now build there of a have its again, is I some two of really, thought it continue kind and here. are of out to bigger make there we because Its we at big someone for not distribution might have year. are ] in normal we distribution the that talked I Every investments kind really moment. One will. China underway make. X stores, XX is element to you investments technology. expansion [ investments we center some ask. XX, have always And corporate about. of run of we buckets, One continuation if about Obviously, of more And rate

the The build capacity in early the part other, York, we to the of U.S. mentioned storage need we additional New in in winter,

the drive relationship And prime will get and of storage kind timing timing bulk our We do have our of ultimately is it's processing. unfortunately, opportunity but that that because of facility, location don't efficient a in a of ability between choose advantage to we The also to unique. which adjacent now. existing to much now the needs, It's more take is that. to that part of

And so the in factor that's swing number. the big

that because I a think in a -- investment least. once if at it's you probably strip XX-year out

for much in to that is the be how of bit the timing rate The year. considerations project plan in are for this run more a little normalized. and of the big against width though, see range, reason China. we get You the going the project determinants far Those is

normalized the lot material because you a [ level spend So those carry kind a range of the you'd particular, bump aside, to from illustrate. timing trend a ] set we if wider and away In the a bit associated those portion more I is gave of projects a China with perspective. But U.S. think see of much

David Weinberg

also spend. I'd of like to U.S. the Yes, clarify some

now operate around growth couldn't lot have of because close move that a the us the caused the of we We to off-site and it are buildings after space X enough. we and product get and pandemic quite experienced needed expensive

joint so in this inefficiencies the in time. The So of is you will can the become imagine reason our expensive that this portion venture. part is U.S.

of half own it. we So

that the So partner, be a joint will It part obviously, but it. And of we own facility. cost. whole will we venture have we pick up

We we'll into it building process. phenomenal not will and all truck of This big at anything conclude to way get a us rid around own. will be able in And have hold direct-to-consumer require so such of our and sort e-com to be process in two buildings, one as move to will we will outside to facility. our

ended to makes half there, also out significant up there we've much less So the said e-comm. fact converted And piece XX% a of simply own a it little it and we'll we a that own bit behind significantly so reporting curve go I because it little it as as Europe, expensive, of time. we but efficient grew the John more direct-to-consumer in in a we we that more point make or will forward. And

had and earlier. So weeks Canal having because Suez in the and more. we're of to significantly pressure us the of put more of closing product get process simply a processing and more X taking that lot we've And on everything efficiently facility

we to then growth up a move existing we're this that I means process that we're our well e-com able piece new some the trying we'll be enhance building that and think on the all this because additional which we're exaggerated doing to for So there, automation-wise, build personally we'll have facility continue facility direct-to-consumer to quite time things quite wholesale new catch facility business and with there. to to

us, back more confluence that investment I things. efficiently X. believe, big it's of and rather come next That's or So a quickly the those a two to will in year

John Kernan

it related you see the selling the follow-up on in in maybe $XX helpful. long generated total long-term the margin incremental Is what's term? should All the margin to opportunities the in near top margin? EBIT do G&A we the not We're One for the in Is 'XX, and $XX opportunity billion line right. billion about -- business? The you gross XX% How at term. it where now and essentially margin you, in think That's profile revenue. of leverage?

David Weinberg

fast that. Well, I'll let John grow. on I take most But you, of tell depend how will we lot will a

If you at likely settle the with faster all would grow it is we've down think We rate. growth a made, yet. investments don't done the significantly curve

but have that's and just So invest on opinion. a to my basis, may worldwide especially we go

John Vandemore

not our we're billion hatch. going Yes. they also I before $XX that would count say to

comment. to we're David's would success sight. And So going in I echo refrain there. from we But certainly, it's ultimately, declaring get until

looking of new as worth at look near-term trend the it grow for we the 'XX as We'll planning to certainly as the we'll product, where XXXX, be investing we different illustration where still able to grow a guessed, our to But is on we opening have every P&L. our as grow above growth growth can represents subsides, for much investment say point business not But question because certainly push business. were this we're stores. contributes against to is of opens, we're margin $XX we operating. probably of of to continue leverage that the billion. it what deleverage the before year, there to that's up the the We our just and to of absolutely of opportunities think in. it a operating ahead our need investments sustain the significant has business in while look the harvest that's lot I achieved make. When from And to said, with how to investing trajectory being is we gets there the we're stop much. currently point because whole. can one key a a the you be come elements grow We're this for think Each investing backdrop the constantly and opportunity it store lot the won't business. the with that in business technologies, We business to And think from market. to

Operator

from next comes question with James. Rick our And Raymond Patel

Rakesh Patel

that this what growth year? of shape if and should in Guidance that from terms the beyond as about you talk to modeling channel? lumpiness of you may QX. to Curious you acceleration keeping there's perspective attribute be Can mind we seems in be a a the move apply caused modest anything by wholesale

John Vandemore

factor to be think is going probably there the China. biggest I single

of first and time that China quarter at the quarter business since deteriorated. obviously, in point has year, look you growth, If last with the last meaningful

a And so David also, lapping spring we're the bit can early shift mentioned, of China. timing guess difficult of in as always shipments. simply I a on some quarter comparison. We're last that

probably #X say in So we're is watching that carefully. But the there. factor I'd China

Rakesh Patel

XXXX you Okay. we the year in about as see Do And foray where basketball your also into terms And you hit going then so, opportunities? accelerator talk cleats can go-to-market you think and running. strategy the a about do how channel? these if of after by

David Weinberg

will of doing We push players to We're ] market the [ now we're us the trying try from introducing marketplace. will as be the We're around seeding product What Well, necessary getting rarely as receptive to marketplace. against go our to. fast we're very the is world. in in. allow the sort

athletes acceptance get through critical different As known continue and the more we will to move and we more expansion more mass, move world. we as get of get all kinds we around our out

about level. a outside players Right does. a it's United well professional is getting requests talking how So as very to now, on States basketball. soccer be as lot the to it fast And received, far doing depends our how basketball well it football it I'm we're as more doing. we're well seems very

beginning the at just we're So stage.

as year. And we we XXXX, although it push might what some go upside you see here the is think not in do through have a major

John Vandemore

think some see also play. sports would Rick, that I add, come other I you'll into

sports way Looking I that operated we've sports we've with in that reimagined performance the some we've a in at recent traditionally match of the will more tightly launched. think

take say yet. guess do starts way categories. I not this can, also in what invest measured of one yield we're to awareness of obviously market in so I in a started as We'll we that We'll around mentioned, to continue continue the So the mean the to us. is 'XX advantage build we to newer to awareness. that was done David things

Operator

And Wong our with comes from question Jesalyn next Evercore.

Yanling Wong

as of really quarter. the growth be? categories term, to of the EMEA's sales big Just also And during following well? it performance is Rick did up following right over well up how [indiscernible], Were specific that category, on held there medium this kind a as the contribution do now? grow category, I how -- you percentage this big you a of think what expect

John Vandemore

Yes.

opportunity the don't offer reenergizing what the they aware others to tremendous become an not ancillary provide benefit category you I we what I'll division then what out markets. of as our with awareness. also would latter, brand. call, in, I we're the characteristics then addressable the it business. the about is, that It broadly. the They upon categories build what build who does would sizable effect overweight tapping of, percentage have to more into new say consumers can They as. What existing not is market And that into we measured level of are On give today, a new addressable relative also is details. depend say rest most kind in tap somewhat is halo we exciting market of performance categories only we're that of call or we performance

say attractive performed the the would on of the fantastic back across through was year. the opportunities long-term It I fantastic really most most board. that's of quite we have. EMEA one So of performing frankly,

to in slip well, the to perform I We've has brand has continued at comfort resonate exceptionally and technologies comfort as That in retail. market think as the enormous. they're focused embrace product seen of wholesale. just consumer well the technologies continue level. technology the in Skechers We've hands-free -- other it technologies and and seen it been

Yanling Wong

just how positive are I point in there Maybe China progressively follow-up year. of -- second improve one on half this Like the China? term imagine of growth throughout it's are China. Is would expecting on to kind we any embedded we for thinking to cadence?

John Vandemore

Somewhat Rick's linked question. to

back the more was any QX other If robust go you quarters. than last of to year,

so the comparison face difficult than a And balance year. we the we the do more first of in quarter

expect a there for As to that where result, first most what better the the that see goes the should the we And means quarter the be as but time not to believe is after acute. year year year, on. first get turnaround a is we'll the in tremendous quarter, point improvement just the we impact

Operator

Bank. from our And with comes next Krisztina question Deutsche Katai

Krisztina Katai

ask and to just then I wanted on composition overall. inventory inventory the

growth? And your to made the which were relative little China on XX% to color You you some you love some levels, comments progress then elaborate XX%, ending said year Would to sales in do you inventory move bit a just the quicker? can But see just get inventory quarter-over-quarter. overall there. your how up

John Vandemore

inventory Yes. culprit there healthy. mean, the elongated I to year-on-year mean is transit. Europe we're merchandise seeing and incredibly contributor times. is the the biggest inventory Obviously, is transit increased where biggest I

that If just you still we're were still inventory. requires more last -- with where times, we compare year, elevated dealing transit and we're to that

the you So last about relative at that's not of for was quickly as going flavor markets, of on that's what inventory the end were need Single older of happened the to the feel around. bit [ inventory. a really to day, indicator inventory water anticipated. the Day, probably was, an that. The on of how at we than nature and ] comment that observe the had is use It's gives good move the to stuff we bound disappointing end act that sitting China to we of we said Singles a we day more quarter,

to room a that get We'll second make -- first to think to for to took for the we in for new those most is product, thing and units. the again get As for the some for the do to consumer. important the move that's there to and comfort do quarter. But result, objective our make best business to the we the us Ultimately, technologies room consumer. and actions

we We but So that's time. we'll made expedite channel of David's to the some the earlier after progress the comment new. the quarter, get about all and the And for to managing with of time. take out we'll something room in inventory [indiscernible] fourth action to We're were do again, it. pleased there's all inventory we make more, actively the

David Weinberg

very And should Yes. that quarter. our it try to a as could first specific for our early on get to Europe was as noted as be part much decision this into we

quarter is the of Canal, largest EMEA. First quarter the us in weeks for of it's Suez the in transit. because And an additional X closing

X the move So of in close everything be quarter. [indiscernible], the to at part to up of X weeks all we it trying to than in try rather to early used what play to transit get weeks the

buildup. its in, is early the it big way received the of on received, part or quarter, be either will which was in So the or

end all and year, year. would the after is this Chinese little later maybe gone have in So also year it new, Year, a the some a and on year early the times after some water to was it new closer little the we in of past, New the which would receive

So everything had be to done.

going together is we all and just that our at growth is inventory power think that means for excess to So not all some EMEA.

Operator

Chris America. Bank of next question our from comes Nardone And with

Christopher Nardone

on just are little if wholesale pricing of footwear the more at quarter? to channel? tariff from potential And XX% concerned John, you How the wholesale elaborate about navigate bit during environment all can situation the U.S. expecting levels worsens U.S. the are you drivers here? inventory you the a growth the within

John Vandemore

quite who that frankly, lift everything of in it We've well. got are Chris. the guess, I extraordinarily the certainly in a from that years now, this We up prior year, had technology. in doing got really to continued year. accounts of comfort wholesale our some the handful accounts X hadn't perform Domestic on point driven back time prior to embraced

So same to of side. seen a some marketing channel conducive drive some a events extraordinary source think what very from takeovers growth we partners, couple we actually and brand, wholesale perspective recently and that continuing wholesale that brand are of really really, to performed the well. even saw the that's domestic to on for And

are, comfort a done said, performed accounts the with overall of in Like inventory embracing concerns channel, sell-throughs. it again, to We're I no those Particularly that technologies. really of wholesale the terms sell-through strong We're In see also there. really continuing that brand well carefully. couple takeovers no, a there. watching great recently

do us That's that landscape. nothing that on well. the gives So domestic to inventory really pause continues

David Weinberg

Yes.

January slowdown perspective, looking to January in people closed. see they're I a fiscal haven't as to customers to early a through think February, indication until from from down had perspective we the on shipping in any. wholesale wanting year a the But no we [indiscernible] any pick come up has end shipping anybody's level some to of later slow clogged than

Operator

Needham. Nikic with comes from And next question our Tom

Tom Nikic

predominantly in this interest would year. be are that believe that's anything said else you Is I due Is sales line that the down expectation the mid-teens minority John, driving down China? that? there to

John Vandemore

business. guide going what's factor significant most the country, the not we're say pure is going But impacting on not are a minority but interest will I other in influencing by trend by there of driver number the the markets in downside, or China interest. item the line that main Well, with yes. to the minority pure It's reflection that's to a as

Tom Nikic

Understood.

shape are safe of for excluding Okay. say growth the of feel inventories high, And in you're that increase mean, and it that inventory transit, the in expecting your to kind that's to you is some in appropriate I 'XX? know to I then transit inventory. it's growth optically, the relative due

John Vandemore

up think were absolutely. hand I -- Yes, XX%. On were levels they

So majority we a out China, of, it said, improved as looking, And came of growth vast pretty improve the the on nicely. just I as we in-transit. said, was hand

couple again, a heavy heavy, has factor is the mean, the contributor inventory in of XX% Canal precisely because there XX% I in-transit lot year-on-year about the inventory, probably, in-transit Yes. it of increase Europe. Suez saw prices mention most a the quarters I'd we in-transit but a for enjoy again, not we talking of of So inventory, been make influencing now, And significant we the increases. say, to was because in-transit

moment. the So inventory. good shipping the geopolitical it's dynamics a of guess, But in I a the inventory. David's inventory. at again, It's way, to of And events. it's order reflection backed market point, It's healthy

can. that it So as out system and quickly process get and as into it we'll we absorb our

Operator

Anna And question comes from Sandler. our Piper next with Andreeva

Anna Andreeva

We had comfort on technologies. a question

are any And pipeline seen follow-up, as been technologies has time. do some or nice some to? And of under could applied pressure. go year? ASP we view the there slight You've innovation XQ through there just a for additional categories How the either traction as that for you be

new despite rolling you I think, technologies guys for in both 'XX. out the channels,

we reverse to should what's 'XX? decline? Or expect in been of the So driving price some that

John Vandemore

Sure.

see they're a touch a broader in on range comfort know that, the the role plays more technologies points so guys And would doing of U.S., dynamics. includes existed the that are is, well. the as technology, I But dynamics, the a seeing categories, I than spread we you advantage price previously. price individuals on me broader side. In taking of seeing while what what as across we're range. is the you're price across FX Let international separate U.S. which obviously, and can't international

appreciating as year, irritating will this are technologies Because we price going promotions. I who walk consumers as technology as that. Also, case throughout a the erosion. mentioned price promotional protecting becomes a more the to the little of fine next into So consumer, to I events. certain a the a was course in of some style ASP juncture, you result line And bit and with don't visiting as year, we've think say see as much would promotional be the it familiar the of include did that events. and decline is that of you the more the and between going year, at started anticipation a included see we're over

I variety think maybe you'd even see for little a a probably a reasons. stability of price of improvement bit and

that of of makes comfort It's our about style a used a across with a to There's showed integrated very [indiscernible] they the I think also category And think early much not so continuing of continues them you continue products. well. be really special. some broadly. guys what can them not amount wide which more think they're to technologies, would run be growth. other to tremendous particularly array as the around drive embedded or features can versions On of the that's that, perform a Fit rate particular technology winter. technology technologies I But I Arch Skechers in to we

performs, our line footwear. that's that's of in, and that not the we've taken focus, always They're driving out continues the but elements haven't some the they're all be going comfort those that but we of comfort level. product, And we're of features operated some they're We focused the traditionally thing, hitting we've primary that we're still thing delivering and because is on the And to our them the as performance grown while comfort coming put would that have performance last -- technologies and into categories, at new same into using our to categories consumers. I reinforce putting new early, consumer features it's newer products. market. to add,

around is. how Our comfort that particular unique offering and

And continuing delivered chase it to and we new business, to features the so for market has as and the we us opportunities across impact across the think some globe already well. what

Anna Andreeva

or May That's kind Did had a the I just I in gross see helpful. And you we of freight on we a year freight any to headwind? ask go I as that appreciate you XQ? super be headwind as expect it. instability one follow-up through in should margins. XQ. believe expected

John Vandemore

pressures mean us bit a rate coming to material for the wasn't impact -- the more bit was the QX. a and the in of really scale there business. gets past enough and there's what a in Yes. little The elements upon little I think crisis. was bit Canal little Qs Suez X then We will It There out. call depends size of the always summer us initial from X. that be

it watching expect But bit We So something in factor. it's there's a a don't driving certainly be to we're little there. carefully.

David Weinberg

somewhat depend amount people its has things and coming It the slowdown regime a New where in as sourcing new to United since States of of lot even come from a has significant and on anticipation Also, brought there a in the around also alternate we stuff will year. the into Chinese been tariffs. move of Yes. before Year have

holds So significantly, business the unless as ships there'll anticipate relief through. would on some that come up they you be

John Vandemore

seen You normalized a certainly to spot rates more have return level.

them but abated perfectly like be, they've summer since to we'd not significantly where Now that pressure.

Operator

from final question comes [ Williams our And Poser Trading. Sam with ]

Samuel Poser

EBIT quarter, or the us then you we can and we quarter that -- you -- first that, help you a a way? all into the back in of the because chunk and and the or that range think this idea help have can us a line impacts FX? So this here. forgot it One, of and give because big what us you as will of into did it. some other can with be what about couple previous EBIT with the -- -- you're us Can in planning of me. Thought so lot I could we to what us help back you we have margin, FX income margin help

John Vandemore

the it we terribly be impact talked as have top we've then loss depending I $X.XX, line the that. effect flow-through value quarter. normally don't acute impact. The impact, looked really establish this where so. half back XX the cited painful be at they're the would kind That's about much other in could that of impact not they we the the comes of impacts. a direction. you But when Yes. it, the to other have go bit those, when of than year, they you we've half, project as they the sizable we'd from $X.XX -- is project then That's like upon rate. FX And we them a other mind income don't rate as so to baseline more We're why normal about in know not in when $X.XX, did which $X.XX if tax little it would of they -- the fourth arrive to first and why year the out, say, the but as

changes, guiding those I actually fairly think we're adjustments you perfectly what the to you'll at comparable see you about a number, those for comparable to make ability look control. not big is neither really expectations we I but you baking which to historically admittedly, so, what and in the to fairly is but that, relative we've think talked were where and street really of if are all that have the

Samuel Poser

I for seems to understand. most year. the have What just QX in the -- movement I trying it to I'm full it. understand acute probably

the in thinking we have of rest an but because less acute. of make want can trying to situation number -- it into asking sort I'm it of range the you into of the I'm of idea don't know missed that and of because they're question or quarter. so you you're for around year falls full an EBIT the piecing where QX, the where where rest -- then I want just explanation. hit just so operating asking first to get And -- don't we have idea back we a you're for it, the can a thinking margin rest back we this we not I'm just of you've to is out the year, the of and gross us given but could of the way? Because

John Vandemore

get Yes. would up Look, the I the those for specific I'd SG&A see in first year. say, on and point, quarter, and into made certainly we I say at deleverage want second the don't [indiscernible]. this end of get to each to expect back in

XXX first quarter. You're impact or minus point there's that. it more in to plus to again, the XXX about But than talking basis

we frankly, line of So the that to quite that's of would a that shipping great that of we to outperform observed. pace into. I have subject based other there's lot and factors opportunity very broad sight upon note also range a don't

a trends that much up reflection could those develop? end of it So that be as encouraging more better than shipping we should some

Samuel Poser

than that headwind else everything a in else quarter, something in the change I there? the again, mean the Again, you the the what big -- first have like of big given anticipated seems China, a there really lastly, Or it then is And months ago much may year. revenue -- more for Okay. okay? -- how of is seems and few China

John Vandemore

where at from I'd quarter. last have would say been overall we the change of the FX Well, biggest end is the

fair of the than spoke anticipated. period most say we the say about significant return in in, we've we came definitely about is last than quarter the globally worse had end the impact fourth it's So came I to seen FX. to China When Singles kind we would window, of had effects that see of Day, we the off expected. yet the then and worse

and QX look thought I I world, just it of the be. So early the very I'd would though, say had of definitely we part encouraging clear look is than XXXX would rest very be not okay, less around very good, things good. the

Americas. continued EMEA, strength in in strength Continued the

excluding Asia-Pac, fantastic. looks China,

through the event. read the think exceptionally need than the well, performed China we be we performed to should I is work China QX. Because can. way performing a our business challenged. guidance. basis, get blew remains in on we constant on in macro a to It's currency little on Absent well business the going still worse very a very, healthier. what that, So market But a We're

be there's and encouraging, very, tax rates. continues associated you're we're that, what Certainly, absent So encouraged organic nature and FX the by some by that. very noise we're frankly, China to of at with if and pretty we see. encouraged, the business quite looking But

David Weinberg

Yes.

almost You have than in X-year million less that China. year, up with through through there. volume is we'll if $XXX growth to continues made continues in no and grew have growth remember, about what we this And period China's a

any So as one dependent we proves pointing out, so. metrics, on it not whatever we're or geography one any keep on category. I And this much think very

think creation we come next we to developments [ as China change develop growing, our go half with through back of add that and do the continuing grow center demand putting not China to and this scorecard growth and will we and within we continue year. will believe Ergo China, our as new China and the We the through back get into talked front ], we the increasing and about to year.

we lot positives have of into a difficult So going very a marketplace.

Samuel Poser

sorry, inventory last given anything Europe In is there sales is given in-transit thing. one of in the And more I'm all the strength any so transit, any is constraining given -- Europe, business? in there the much --

David Weinberg

have and First increases in December it's XX, inventory. all, transit in of at we did some

places, just it's and a of be will busy in anticipate processing but So those all inventory QX here. right now, we're for that the lot anticipated very do, we to was

Samuel Poser

fourth of the the quarter transits? was because sales any And in issue there in of

David Weinberg

in what know grow reason little short exact don't we'll I We felt was. the December. a

I December like shift think business into from a way. other anything had January we the sale, rather than else, slight

the quarter, the on have did think to -- because So an we trying strong I delayed basis I the for was in But January. simply we some things in October pick season, were inventory. and converse. early we had all quite up a overall In to grow we're catch the it were to going come fourth did out very think well. We

now because December I So on moved into I all October, the January. a basis pick a thought have -- relative and delivered And that out we so inventories much up significant there. we things demand through think and again in

Operator

for it session. any comments. to conclude does that today's And question-and-answer closing back pass I'll management

John Vandemore

the time with of everybody and speaking your to forward closing here. you, No at end QX. comments for Thank look you

Operator

you thank you. today's does Thank This We for participation. conclude teleconference. your

You may disconnect at time. your lines this

Skechers U.S.A. (SKX) 6 Feb 252024 Q4 Earnings call transcript