Skechers Inc., the American footwear company, has announced record-breaking sales for the second quarter of 2025, reporting revenues of $2.44 billion. This figure reflects a year-over-year (YoY) increase of 13.1%, with $33.9 million attributed to favorable foreign currency exchange rates. When adjusted for constant currency, sales rose by 11.5% to reach $2.41 billion.
In terms of sales distribution, wholesale revenues grew by 15% YoY, reaching $1.3 billion, while direct-to-consumer (DTC) sales saw an 11% increase to $1.14 billion. The diluted earnings per share (EPS) stood at $1.13, benefiting from a $0.30 gain due to currency fluctuations, compared to $0.83 on a constant currency basis. Net earnings attributable to Skechers amounted to $170.5 million, marking a 21.5% increase from the previous year.
The gross profit for Q2 rose by 9.9% to $1.3 billion, yielding a gross margin of 53.3%, which reflects a decline of 160 basis points attributed to rising costs of sales. Operating expenses increased by 15.4% to $1.13 billion, leading to a 16.2% dip in operational earnings, which totaled $173.1 million. As a result, the operating margin narrowed from 9.6% to 7.1%, as indicated in their press release.
International sales significantly outpaced domestic growth, soaring by 22% during Q2 to $1.58 billion, largely powered by a remarkable 48.5% increase in the Europe, Middle East, and Africa (EMEA) region. The Asia Pacific (APAC) region also reported a 5.5% increase; however, sales in China fell by 8.2% during the quarter, totaling $287.2 million.
For the first half of 2025 (H1), Skechers experienced a 10% YoY growth in sales, reaching $4.85 billion. This was driven by an 11% rise in wholesale revenue to $2.83 billion and an 8.8% increase in DTC revenue to $2.02 billion.
In H1, domestic sales rose by 3.2%, totaling $1.72 billion, while international sales surged by 14.2% to $3.14 billion, led by an 18% growth in wholesale revenue to $1.92 billion and an 8.6% increase in DTC revenue to $1.21 billion.
Regionally, the Americas generated $2.22 billion in sales in H1, representing a 4.6% increase. Meanwhile, the EMEA region reported impressive growth of 29.4%, totaling $1.45 billion. In contrast, APAC sales modestly increased by 1.4% to $1.18 billion, while sales in China saw a decline of 12.1%, totaling $555.8 million, as stated in the release.
