Q2false--12-310001065837SKECHERS USA INChttp://fasb.org/us-gaap/2024#SecuredOvernightFinancingRateSofrMemberhttp://fasb.org/us-gaap/2024#SecuredOvernightFinancingRateSofrMemberhttp://fasb.org/us-gaap/2024#SecuredOvernightFinancingRateSofrMemberhttp://fasb.org/srt/2024#ChiefOperatingOfficerMember0001065837us-gaap:NonUsMember2025-06-3000010658372024-06-300001065837skx:JointVentureWithHFLogisticsMemberskx:HFLogisticsTwoDistributionCenterConstructionLoanMember2020-04-022020-04-030001065837us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-04-012025-06-300001065837us-gaap:NonUsMemberskx:DirectToConsumerMember2025-01-012025-06-300001065837skx:FebruaryTwoThousandTwentyTwoEarningsPerShareGrantMember2025-01-012025-06-300001065837us-gaap:FairValueInputsLevel2Member2025-06-300001065837skx:OtherLoanMember2024-12-310001065837us-gaap:CommonStockMemberus-gaap:CommonClassAMember2024-04-012024-06-300001065837us-gaap:AdditionalPaidInCapitalMember2024-06-3000010658372023-12-310001065837us-gaap:CommonClassAMember2025-06-300001065837us-gaap:AdditionalPaidInCapitalMember2025-04-012025-06-300001065837skx:RevolvingCreditFacility-IndiaMember2025-01-012025-06-300001065837us-gaap:NonUsMember2025-01-012025-06-300001065837us-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMemberskx:ManufacturerTwoMember2025-04-012025-06-300001065837skx:WholesaleMember2025-06-300001065837us-gaap:FairValueInputsLevel2Memberskx:CorporateNotesAndBondsMember2025-06-300001065837skx:HFLogisticsThreeJointVentureMemberskx:JointVentureWithHFLogisticsMember2024-01-012024-12-310001065837us-gaap:CommonClassAMember2025-07-300001065837skx:WholesaleMember2024-04-012024-06-300001065837us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-01-012025-06-300001065837country:CN2025-04-012025-06-300001065837us-gaap:AdditionalPaidInCapitalMember2024-03-310001065837country:USskx:DirectToConsumerMember2024-01-012024-06-300001065837us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2024-12-310001065837us-gaap:FairValueInputsLevel1Memberus-gaap:MutualFundMember2024-12-310001065837skx:RevolvingCreditFacilityCorporateMember2025-06-300001065837us-gaap:ParentMember2024-03-310001065837us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-03-310001065837skx:OtherChinaOperationalLoansMember2024-12-3100010658372024-04-012024-06-300001065837skx:DirectToConsumerMember2024-01-012024-06-300001065837us-gaap:CostOfGoodsTotalMemberskx:ManufacturerFiveMemberus-gaap:SupplierConcentrationRiskMember2024-04-012024-06-300001065837skx:DirectToConsumerMember2025-01-012025-06-300001065837country:US2025-01-012025-06-300001065837us-gaap:CommonStockMemberus-gaap:CommonClassAMember2024-03-310001065837skx:ManufacturerThreeMemberus-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMember2024-01-012024-06-300001065837skx:Other-InternationalFacilitiesMember2025-01-012025-06-3000010658372024-01-012024-06-300001065837skx:WholesaleMember2024-01-012024-06-300001065837country:CN2024-04-012024-06-300001065837us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2025-06-300001065837us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2024-04-012024-06-300001065837us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-06-300001065837skx:HFLogisticsThreeDistributionCenterMemberskx:JointVentureWithHFLogisticsMember2025-01-012025-06-300001065837skx:MarketBasedRestrictedStockMember2024-01-012024-06-300001065837us-gaap:CommonStockMemberus-gaap:CommonClassAMember2024-12-310001065837us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-06-300001065837srt:AsiaPacificMember2024-04-012024-06-300001065837us-gaap:NonUsMemberskx:WholesaleMember2024-01-012024-06-300001065837skx:RevolvingCreditFacilityCorporateMember2025-01-012025-06-300001065837us-gaap:ParentMember2025-04-012025-06-300001065837skx:WholesaleMember2025-04-012025-06-300001065837srt:MinimumMemberskx:TwoPointZeroZeroToTwoPointSixZeroPercentageLoansPayableMemberskx:OtherChinaOperationalLoansMember2024-12-310001065837us-gaap:CommonStockMemberus-gaap:CommonClassBMember2025-06-3000010658372024-12-310001065837us-gaap:AdditionalPaidInCapitalMember2024-01-012024-06-300001065837us-gaap:CommonStockMemberus-gaap:CommonClassBMember2024-04-012024-06-300001065837country:USskx:DirectToConsumerMember2024-04-012024-06-300001065837country:USskx:DirectToConsumerMember2025-01-012025-06-300001065837us-gaap:CostOfGoodsTotalMemberskx:ManufacturerFiveMemberus-gaap:SupplierConcentrationRiskMember2024-01-012024-06-300001065837us-gaap:EmployeeStockMember2025-01-012025-06-300001065837country:CN2025-06-300001065837skx:WholesaleMembercountry:US2025-01-012025-06-300001065837skx:EuropeMiddleEastAndAfricaMember2024-04-012024-06-300001065837us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMember2024-12-310001065837srt:MaximumMemberskx:TwoPointZeroZeroToTwoPointSixZeroPercentageLoansPayableMemberskx:OtherChinaOperationalLoansMember2024-12-310001065837us-gaap:NonUsMemberskx:WholesaleMember2025-04-012025-06-300001065837skx:RevolvingCreditFacilityCorporateMemberskx:UnsecuredRevolvingCreditFacilityMember2025-06-300001065837us-gaap:PerformanceSharesMembersrt:MaximumMember2025-01-012025-06-300001065837skx:TwoThousandEighteenEmployeeStockPurchasePlanMember2025-06-300001065837skx:HFLogisticsThreeDistributionCenterMemberskx:JointVentureWithHFLogisticsMember2025-06-300001065837us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2025-06-300001065837us-gaap:ParentMember2024-01-012024-06-300001065837us-gaap:CommonClassBMember2025-06-300001065837us-gaap:CommonStockMemberus-gaap:CommonClassBMember2024-12-310001065837skx:FebruaryTwoThousandTwentyTwoTotalShareholderReturnGrantMember2025-01-012025-06-300001065837us-gaap:AdditionalPaidInCapitalMember2025-03-310001065837skx:EuropeMiddleEastAndAfricaMember2025-01-012025-06-300001065837us-gaap:ParentMember2025-01-012025-06-300001065837us-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMemberskx:ManufacturerOneMember2024-01-012024-06-300001065837us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2025-04-012025-06-300001065837srt:AsiaPacificMember2025-04-012025-06-300001065837skx:MergerAgreementMemberskx:SKECHERSUSAINCMemberskx:MixedElectionConsiderationMember2025-05-040001065837skx:DirectToConsumerMember2025-04-012025-06-300001065837skx:JointVentureWithHFLogisticsMemberskx:HFLogisticsOneDistributionCenterLoanMember2025-06-300001065837us-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMemberskx:ManufacturerTwoMember2024-01-012024-06-300001065837us-gaap:RetainedEarningsMember2024-06-300001065837us-gaap:RetainedEarningsMember2023-12-310001065837country:CN2024-12-310001065837skx:RevolvingCreditFacilityCorporateMemberus-gaap:LineOfCreditMember2025-06-300001065837country:CN2024-01-012024-06-300001065837us-gaap:NonUsMember2024-01-012024-06-300001065837us-gaap:EmployeeStockMember2025-04-012025-06-300001065837us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2025-06-300001065837us-gaap:NonUsMemberskx:DirectToConsumerMember2025-04-012025-06-300001065837us-gaap:CommonStockMemberus-gaap:CommonClassAMember2024-06-300001065837us-gaap:NonUsMemberskx:DirectToConsumerMember2024-04-012024-06-300001065837us-gaap:CommonStockMemberus-gaap:CommonClassAMember2025-01-012025-06-300001065837skx:ManufacturerFourMemberus-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMember2025-04-012025-06-300001065837skx:JointVentureWithHFLogisticsMemberskx:HFLogisticsOneDistributionCenterLoanMemberskx:MarchTwentyTwentyFiveConstructionLoanAgreementMember2025-06-300001065837us-gaap:ParentMember2024-04-012024-06-300001065837us-gaap:CommonStockMemberus-gaap:CommonClassBMember2024-03-310001065837us-gaap:EmployeeStockMember2024-04-012024-06-300001065837skx:EuropeMiddleEastAndAfricaMember2025-04-012025-06-300001065837skx:DirectToConsumerMember2024-12-310001065837srt:MaximumMember2025-01-012025-06-300001065837skx:ChinaDistributionCenterConstructionLoanAgreementMember2025-06-300001065837skx:Other-InternationalFacilitiesMember2025-06-300001065837skx:JointVentureWithHFLogisticsMemberskx:HFLogisticsTwoDistributionCenterConstructionLoanMemberskx:AprilTwentyTwentyFiveConstructionLoanAgreementMember2025-04-300001065837srt:MinimumMemberskx:TwoPointZeroZeroToTwoPointSixZeroPercentageLoansPayableMemberskx:OtherChinaOperationalLoansMember2025-06-300001065837us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-12-310001065837us-gaap:ParentMember2025-03-310001065837skx:WholesaleMembercountry:US2024-01-012024-06-300001065837skx:JointVentureWithHFLogisticsMemberskx:HFLogisticsTwoDistributionCenterConstructionLoanMember2020-04-030001065837us-gaap:AdditionalPaidInCapitalMember2025-06-300001065837us-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMemberskx:ManufacturerOneMember2025-04-012025-06-300001065837skx:ChinaDistributionCenterExpansionConstructionLoanMember2025-06-300001065837us-gaap:CommonClassAMemberskx:TwoThousandEighteenEmployeeStockPurchasePlanMember2025-06-300001065837us-gaap:RetainedEarningsMember2024-03-310001065837skx:OtherLoanMember2025-01-012025-06-300001065837skx:IndiaCreditFacilityMember2025-01-012025-06-300001065837us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2025-01-012025-06-300001065837us-gaap:TermLifeInsuranceMember2025-06-300001065837skx:TopFiveManufacturersMemberus-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMember2024-04-012024-06-300001065837skx:ChinaDistributionCenterExpansionConstructionLoanMember2024-12-310001065837skx:ManufacturerThreeMemberus-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMember2024-04-012024-06-300001065837skx:RevolvingCreditFacilityCorporateMemberus-gaap:LetterOfCreditMember2025-06-300001065837skx:HFLogisticsOneDistributionCenterLoanMember2025-06-300001065837skx:OtherLoanMember2025-06-300001065837skx:RevolvingCreditFacility-IndiaMember2025-06-300001065837skx:RevolvingCreditFacility-IndiaMember2024-12-310001065837us-gaap:NoncontrollingInterestMember2024-01-012024-06-300001065837country:US2025-06-300001065837skx:TwoThousandEighteenEmployeeStockPurchasePlanMember2025-01-012025-06-300001065837skx:MergerAgreementMemberskx:SKECHERSUSAINCMember2025-06-300001065837us-gaap:SalesRevenueNetMemberskx:FiveLargestCustomersMemberus-gaap:CustomerConcentrationRiskMember2025-04-012025-06-300001065837us-gaap:RetainedEarningsMember2025-04-012025-06-300001065837us-gaap:CommonStockMemberus-gaap:CommonClassBMember2025-03-310001065837us-gaap:TermLifeInsuranceMember2024-12-310001065837skx:OtherChinaOperationalLoansMember2025-06-300001065837skx:ManufacturerThreeMemberus-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMember2025-04-012025-06-300001065837us-gaap:NoncontrollingInterestMember2025-04-012025-06-300001065837skx:HFLogisticsTwoDistributionCenterConstructionLoanMember2025-01-012025-06-300001065837skx:JointVentureWithHFLogisticsMemberskx:HFLogisticsTwoDistributionCenterConstructionLoanMemberskx:AprilTwentyTwentyConstructionLoanAgreementMember2025-06-300001065837us-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMemberskx:ManufacturerOneMember2025-01-012025-06-300001065837skx:JointVentureWithHFLogisticsMemberskx:HFLogisticsThreeDistributionCenterMember2025-06-300001065837us-gaap:CommonStockMemberus-gaap:CommonClassAMember2023-12-310001065837country:US2024-12-310001065837us-gaap:CashMember2024-12-310001065837us-gaap:AdditionalPaidInCapitalMember2024-12-310001065837us-gaap:AdditionalPaidInCapitalMember2023-12-310001065837skx:JointVentureWithHFLogisticsMemberskx:HFLogisticsTwoDistributionCenterConstructionLoanMemberskx:AprilTwentyTwentyFiveConstructionLoanAgreementMember2025-04-012025-04-300001065837us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2024-12-310001065837skx:TopFiveManufacturersMemberus-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMember2025-01-012025-06-300001065837us-gaap:ParentMember2024-06-300001065837us-gaap:PerformanceSharesMembersrt:MinimumMember2025-01-012025-06-300001065837us-gaap:FairValueInputsLevel2Member2024-12-3100010658372025-03-310001065837us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2024-01-012024-06-300001065837skx:RevolvingCreditFacilityCorporateMembersrt:MaximumMemberus-gaap:LineOfCreditMember2025-06-300001065837us-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMember2024-12-310001065837us-gaap:RetainedEarningsMember2025-01-012025-06-300001065837skx:TopFiveManufacturersMemberus-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMember2025-04-012025-06-300001065837us-gaap:SalesRevenueNetMemberskx:FiveLargestCustomersMemberus-gaap:CustomerConcentrationRiskMember2024-04-012024-06-300001065837us-gaap:CostOfGoodsTotalMemberskx:ManufacturerFiveMemberus-gaap:SupplierConcentrationRiskMember2025-04-012025-06-300001065837skx:ManufacturerThreeMemberus-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMember2025-01-012025-06-300001065837srt:AmericasMember2024-04-012024-06-300001065837skx:WholesaleMember2025-01-012025-06-300001065837skx:OtherChinaOperationalLoansMember2025-01-012025-06-300001065837srt:AmericasMember2025-04-012025-06-300001065837skx:WholesaleMembercountry:US2025-04-012025-06-300001065837skx:WholesaleMember2024-12-310001065837us-gaap:NoncontrollingInterestMember2025-06-300001065837us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310001065837skx:HFLogisticsThreeDistributionCenterMemberskx:JointVentureWithHFLogisticsMember2024-01-012024-12-310001065837skx:HFLogisticsTwoDistributionCenterConstructionLoanMember2024-12-310001065837us-gaap:FairValueInputsLevel2Memberskx:CorporateNotesAndBondsMember2024-12-310001065837us-gaap:PerformanceSharesMember2024-01-012024-06-300001065837us-gaap:NoncontrollingInterestMember2024-12-310001065837srt:AmericasMember2025-01-012025-06-300001065837srt:AsiaPacificMember2025-01-012025-06-300001065837skx:DirectToConsumerMember2025-06-300001065837skx:JointVentureWithHFLogisticsMemberskx:HFLogisticsTwoDistributionCenterConstructionLoanMemberskx:AprilTwentyTwentyFiveConstructionLoanAgreementMemberus-gaap:SecuredOvernightFinancingRateSofrMember2025-04-012025-04-300001065837us-gaap:CostOfGoodsTotalMemberskx:ManufacturerFourMemberus-gaap:SupplierConcentrationRiskMember2024-01-012024-06-300001065837us-gaap:RetainedEarningsMember2025-03-310001065837skx:TwoPointZeroZeroToTwoPointSixZeroPercentageLoansPayableMembersrt:MaximumMemberskx:OtherChinaOperationalLoansMember2025-06-300001065837us-gaap:ForeignCountryMembersrt:MaximumMember2025-01-012025-06-300001065837us-gaap:NoncontrollingInterestMember2024-03-310001065837us-gaap:SalesRevenueNetMemberskx:FiveLargestCustomersMemberus-gaap:CustomerConcentrationRiskMember2024-01-012024-06-300001065837country:USskx:DirectToConsumerMember2025-04-012025-06-300001065837skx:DirectToConsumerMember2024-04-012024-06-300001065837us-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMemberskx:ManufacturerTwoMember2024-04-012024-06-300001065837skx:MergerAgreementMemberskx:SKECHERSUSAINCMember2025-05-042025-05-040001065837country:US2025-04-012025-06-300001065837us-gaap:NonUsMemberskx:WholesaleMember2025-01-012025-06-300001065837skx:HFLogisticsOneDistributionCenterLoanMemberskx:JointVentureWithHFLogisticsMember2025-01-012025-06-300001065837us-gaap:FairValueInputsLevel1Member2024-12-310001065837skx:RevolvingCreditFacilityCorporateMember2024-12-310001065837us-gaap:RetainedEarningsMember2024-04-012024-06-3000010658372025-04-012025-06-300001065837us-gaap:RetainedEarningsMember2024-12-310001065837skx:ManufacturerFourMemberus-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMember2025-01-012025-06-300001065837us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2024-12-310001065837us-gaap:CashMember2025-06-300001065837skx:MergerAgreementMemberskx:SKECHERSUSAINCMemberus-gaap:CommonClassBMember2025-05-040001065837skx:EuropeMiddleEastAndAfricaMember2024-01-012024-06-300001065837us-gaap:CommonStockMemberus-gaap:CommonClassAMember2024-01-012024-06-300001065837skx:TopFiveManufacturersMemberus-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMember2024-01-012024-06-300001065837skx:HFLogisticsTwoDistributionCenterConstructionLoanMember2025-06-3000010658372025-01-012025-06-300001065837us-gaap:ParentMember2025-06-300001065837us-gaap:PerformanceSharesMember2025-01-012025-06-300001065837us-gaap:InterestRateSwapMemberskx:JointVentureWithHFLogisticsMemberskx:HFLogisticsOneDistributionCenterLoanMember2025-06-300001065837us-gaap:SalesRevenueNetMemberskx:FiveLargestCustomersMemberus-gaap:CustomerConcentrationRiskMember2025-01-012025-06-3000010658372025-06-300001065837us-gaap:CommonStockMemberus-gaap:CommonClassBMember2025-01-012025-06-300001065837srt:MinimumMemberus-gaap:ForeignCountryMember2025-01-012025-06-300001065837skx:NewShareRepurchaseProgramMemberus-gaap:CommonClassAMember2024-07-252024-07-250001065837us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-300001065837us-gaap:CommonStockMemberus-gaap:CommonClassAMember2025-03-310001065837us-gaap:RetainedEarningsMember2025-06-300001065837us-gaap:NoncontrollingInterestMember2025-01-012025-06-300001065837us-gaap:NonUsMember2024-12-310001065837skx:JointVentureWithHFLogisticsMemberskx:HFLogisticsOneDistributionCenterLoanMemberskx:MarchTwentyTwentyFiveConstructionLoanAgreementMember2025-03-012025-03-310001065837us-gaap:CommonStockMemberus-gaap:CommonClassBMember2024-01-012024-06-300001065837skx:IndiaCreditFacilityMember2025-06-300001065837country:US2024-04-012024-06-300001065837us-gaap:NonUsMemberskx:WholesaleMember2024-04-012024-06-300001065837us-gaap:FairValueInputsLevel1Memberus-gaap:MutualFundMember2025-06-300001065837us-gaap:NoncontrollingInterestMember2023-12-310001065837skx:HFLogisticsOneDistributionCenterLoanMember2024-12-310001065837skx:NewShareRepurchaseProgramMemberus-gaap:CommonClassAMember2024-07-250001065837skx:MergerAgreementMemberskx:SKECHERSUSAINCMemberskx:MixedElectionConsiderationMember2025-05-042025-05-040001065837skx:Other-InternationalFacilitiesMember2024-12-310001065837us-gaap:RestrictedStockUnitsRSUMember2025-01-012025-06-300001065837us-gaap:ParentMember2023-12-310001065837us-gaap:CommonStockMemberus-gaap:CommonClassAMember2025-06-300001065837skx:JointVentureWithHFLogisticsMemberskx:HFLogisticsOneDistributionCenterLoanMemberskx:MarchTwentyTwentyFiveConstructionLoanAgreementMember2025-03-310001065837us-gaap:NoncontrollingInterestMember2024-04-012024-06-300001065837us-gaap:CommonStockMemberus-gaap:CommonClassBMember2024-06-300001065837us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2024-12-310001065837us-gaap:NonUsMemberskx:DirectToConsumerMember2024-01-012024-06-300001065837us-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMemberskx:ManufacturerOneMember2024-04-012024-06-300001065837country:US2024-01-012024-06-300001065837us-gaap:NonUsMember2025-04-012025-06-300001065837country:CN2025-01-012025-06-300001065837us-gaap:CommonStockMemberus-gaap:CommonClassAMember2025-04-012025-06-300001065837us-gaap:NoncontrollingInterestMember2024-06-300001065837skx:JointVentureWithHFLogisticsMemberskx:HFLogisticsTwoDistributionCenterConstructionLoanMemberskx:AprilTwentyTwentyFiveConstructionLoanAgreementMember2025-06-3000010658372024-03-310001065837us-gaap:CommonStockMemberus-gaap:CommonClassBMember2023-12-310001065837us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-04-012024-06-300001065837us-gaap:AdditionalPaidInCapitalMember2024-04-012024-06-300001065837us-gaap:CommonClassBMember2025-07-300001065837us-gaap:CostOfGoodsTotalMemberskx:ManufacturerFiveMemberus-gaap:SupplierConcentrationRiskMember2025-01-012025-06-300001065837us-gaap:CommonClassBMember2024-12-310001065837skx:MergerAgreementMemberskx:SKECHERSUSAINCMember2025-05-040001065837skx:ChinaDistributionCenterConstructionLoanAgreementMember2022-10-180001065837skx:MergerAgreementMemberskx:SKECHERSUSAINCMemberskx:CashConsiderationMember2025-05-040001065837skx:Other-InternationalFacilitiesMember2025-06-300001065837srt:AsiaPacificMember2024-01-012024-06-300001065837us-gaap:CommonClassAMember2024-12-310001065837skx:ChinaDistributionCenterExpansionConstructionLoanMember2025-01-012025-06-300001065837skx:WholesaleMembercountry:US2024-04-012024-06-300001065837skx:RevolvingCreditFacilityCorporateMemberskx:SwinglineLoansMember2025-06-300001065837skx:ManufacturerFourMemberus-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMember2024-04-012024-06-300001065837us-gaap:AdditionalPaidInCapitalMember2025-01-012025-06-300001065837us-gaap:NonUsMember2024-04-012024-06-300001065837us-gaap:ParentMember2024-12-310001065837us-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMemberskx:ManufacturerTwoMember2025-01-012025-06-300001065837us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001065837us-gaap:EmployeeStockMember2024-01-012024-06-300001065837us-gaap:RetainedEarningsMember2024-01-012024-06-300001065837us-gaap:CommonClassAMemberskx:MergerAgreementMemberskx:SKECHERSUSAINCMember2025-05-040001065837skx:HFLogisticsOneDistributionCenterLoanMember2025-01-012025-06-300001065837us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-06-300001065837us-gaap:NoncontrollingInterestMember2025-03-310001065837srt:AmericasMember2024-01-012024-06-300001065837us-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMember2025-06-300001065837us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2025-06-300001065837us-gaap:FairValueInputsLevel1Member2025-06-300001065837skx:MarketBasedRestrictedStockMember2025-01-012025-06-30skx:Derivativeskx:Customerxbrli:purexbrli:sharesskx:Segmentiso4217:CNYiso4217:USDxbrli:sharesiso4217:USD

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-14429

SKECHERS U.S.A., INC.

(Exact name of registrant as specified in its charter)

      Delaware

     95-4376145

     (State or other jurisdiction of
incorporation or organization)

     (I.R.S. Employer
Identification No.)

     228 Manhattan Beach Blvd.
Manhattan Beach, California

     90266

     (Address of principal executive office)

     (Zip Code)

(310) 318-3100

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol	Name of each exchange on which registered
Class A Common Stock, par value $0.001 per share	SKX	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 30, 2025 130,962,336 shares of the registrant’s Class A Common Stock, $0.001 par value per share, were outstanding.

As of July 30, 2025 19,313,651 shares of the registrant’s Class B Common Stock, $0.001 par value per share, were outstanding.

SKECHERS U.S.A., INC. AND SUBSIDIARIES

Form 10-Q

Table of Contents


PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets (Unaudited)	3
	Condensed Consolidated Statements of Earnings (Unaudited)	4
	Condensed Consolidated Statements of Comprehensive Income (Unaudited)	5
	Condensed Consolidated Statements of Stockholders' Equity and Redeemable Noncontrolling Interest (Unaudited)	6
	Condensed Consolidated Statements of Cash Flows (Unaudited)	8
	Notes to Condensed Consolidated Financial Statements (Unaudited)	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	25
Item 4.	Controls and Procedures	25

PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	25
Item 1A.	Risk Factors	26
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 3.	Defaults Upon Senior Securities	28
Item 4.	Mine Safety Disclosures	28
Item 5.	Other Information	29
Item 6.	Exhibits	30
	Signatures	32

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

SKECHERS U.S.A., INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited)


	As of			As of
(in thousands, except par value)	June 30, 2025			December 31, 2024
ASSETS
Current assets
Cash and cash equivalents	$	1,377,152		$	1,116,516
Short-term investments		106,254			118,470
Trade accounts receivable, less allowances of $75,702 and $66,616		1,149,298			990,558
Other receivables		105,157			98,499
Inventory		1,871,805			1,919,386
Prepaid expenses and other		242,045			205,994
Total current assets ($1,439,842 and $1,413,643 related to VIEs)		4,851,711			4,449,423
Property, plant and equipment, net		2,075,256			1,834,930
Operating lease right-of-use assets		1,536,161			1,363,596
Deferred tax assets		423,544			440,358
Long-term investments		157,452			146,687
Goodwill		103,945			94,494
Other assets, net		130,047			126,270
Total non-current assets ($994,957 and $861,175 related to VIEs)		4,426,405			4,006,335
TOTAL ASSETS	$	9,278,116		$	8,455,758
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	1,159,891		$	1,241,838
Accrued expenses		356,295			330,251
Operating lease liabilities		303,370			297,926
Current installments of long-term borrowings		316,748			353,131
Short-term borrowings		179,633			33,338
Total current liabilities ($787,111 and $846,986 related to VIEs)		2,315,937			2,256,484
Long-term operating lease liabilities		1,358,821			1,176,290
Long-term borrowings		87,965			68,450
Deferred tax liabilities		10,283			11,148
Other long-term liabilities		129,601			123,122
Total non-current liabilities ($205,575 and $170,341 related to VIEs)		1,586,670			1,379,010
Total liabilities		3,902,607			3,635,494
Commitments and contingencies (Note 10)
Redeemable noncontrolling interest		102,374			90,099
Stockholders’ equity
Preferred Stock, $0.001 par value; 10,000 shares authorized; none issued and outstanding		—			—
Class A Common Stock, $0.001 par value; 500,000 shares authorized; 130,963 and 129,854 shares issued and outstanding		131			130
Class B Common Stock, $0.001 par value; 75,000 shares authorized; 19,314 and 19,379 shares issued and outstanding		19			19
Additional paid-in capital		38,116			12,170
Accumulated other comprehensive loss		(71,989	)		(171,221	)
Retained earnings		4,809,135			4,436,201
Skechers U.S.A., Inc. equity		4,775,412			4,277,299
Noncontrolling interests		497,723			452,866
Total stockholders' equity		5,273,135			4,730,165
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS' EQUITY	$	9,278,116		$	8,455,758

See accompanying notes to unaudited condensed consolidated financial statements.

SKECHERS U.S.A., INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings

(Unaudited)


	Three Months Ended June 30,					Six Months Ended June 30,
(in thousands, except per share data)	2025		2024			2025		2024
Sales	$	2,440,024	$	2,157,643		$	4,851,595	$	4,409,230
Cost of sales		1,138,721		973,206			2,295,918		2,043,159
Gross profit		1,301,303		1,184,437			2,555,677		2,366,071
Operating expenses
Selling		251,883		235,870			436,956		392,371
General and administrative		876,338		742,036			1,680,514		1,468,371
Total operating expenses		1,128,221		977,906			2,117,470		1,860,742
Earnings from operations		173,082		206,531			438,207		505,329
Other income (expense)		45,517		(1,652	)		70,047		(3,702	)
Earnings before income taxes		218,599		204,879			508,254		501,627
Income tax expense		35,894		40,355			100,477		96,725
Net earnings		182,705		164,524			407,777		404,902
Less: Net earnings attributable to noncontrolling interests and redeemable noncontrolling interest		12,207		24,222			34,843		57,978
Net earnings attributable to Skechers U.S.A., Inc.	$	170,498	$	140,302		$	372,934	$	346,924
Net earnings per share attributable to Skechers U.S.A., Inc.
Basic	$	1.14	$	0.92		$	2.49	$	2.27
Diluted	$	1.13	$	0.91		$	2.46	$	2.24
Weighted-average shares used in calculating net earnings per share attributable to Skechers U.S.A., Inc.
Basic		150,001		152,503			149,711		152,707
Diluted		151,305		154,176			151,395		154,640

See accompanying notes to unaudited condensed consolidated financial statements.

SKECHERS U.S.A., INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)


	Three Months Ended June 30,					Six Months Ended June 30,
(in thousands)	2025		2024			2025			2024
Net earnings	$	182,705	$	164,524		$	407,777		$	404,902
Other comprehensive income, net of tax
Net changes related to fair value of derivative contract		—		(1,224	)		(1,367	)		(1,863	)
Gain (loss) on foreign currency translation adjustment		95,042		(20,760	)		122,888			(39,196	)
Comprehensive income		277,747		142,540			529,298			363,843
Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest		32,674		16,888			57,132			44,201
Comprehensive income attributable to Skechers U.S.A., Inc.	$	245,073	$	125,652		$	472,166		$	319,642

See accompanying notes to unaudited condensed consolidated financial statements.

SKECHERS U.S.A., INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders' Equity and Redeemable Noncontrolling Interest

(Unaudited)


	Shares						Amount
(in thousands)	Class A Common Stock			Class B Common Stock			Class A Common Stock			Class B Common Stock		Additional paid–in capital			Accumulated other comprehensive loss			Retained earnings		Skechers U.S.A., Inc. equity			Noncontrolling interests			Total stockholders' equity			Redeemable noncontrolling interest
Balance at March 31, 2025		130,290			19,314		$	130		$	19	$	19,969		$	(146,564	)	$	4,638,637	$	4,512,191		$	474,541		$	4,986,732		$	92,882
Net earnings		—			—			—			—		—			—			170,498		170,498			11,534			182,032			673
Foreign currency translation adjustment		—			—			—			—		—			74,575			—		74,575			11,648			86,223			8,819
Stock compensation expense		—			—			—			—		25,109			—			—		25,109			—			25,109			—
Proceeds from the employee stock purchase plan		143			—			—			—		7,519			—			—		7,519			—			7,519			—
Shares issued under the incentive award plan		834			—			1			—		41			—			—		42			—			42			—
Shares redeemed for employee tax withholdings		(304	)		—			—			—		(14,522	)		—			—		(14,522	)		—			(14,522	)		—
Balance at June 30, 2025		130,963			19,314		$	131		$	19	$	38,116		$	(71,989	)	$	4,809,135	$	4,775,412		$	497,723		$	5,273,135		$	102,374

Balance at March 31, 2024		132,333			20,182		$	132		$	20	$	228,594		$	(86,020	)	$	4,003,352	$	4,146,078		$	312,855		$	4,458,933		$	94,758
Net earnings		—			—			—			—		—			—			140,302		140,302			21,891			162,193			2,331
Foreign currency translation adjustment		—			—			—			—		—			(14,650	)		—		(14,650	)		(2,597	)		(17,247	)		(3,513	)
Distributions to noncontrolling interests		—			—			—			—		—			—			—		—			(38,637	)		(38,637	)		—
Net changes related to fair value of derivative contract		—			—			—			—		—			—			—		—			(1,224	)		(1,224	)		—
Stock compensation expense		—			—			—			—		23,471			—			—		23,471			—			23,471			—
Proceeds from the employee stock purchase plan		137			—			—			—		6,823			—			—		6,823			—			6,823			—
Shares issued under the incentive award plan		853			—			1			—		(1	)		—			—		—			—			—			—
Shares redeemed for employee tax withholdings		(316	)		—			—			—		(20,722	)		—			—		(20,722	)		—			(20,722	)		—
Repurchases of common stock		(879	)		—			(1	)		—		(60,017	)		—			—		(60,018	)		—			(60,018	)		—
Conversion of Class B Common Stock into Class A Common Stock		103			(103	)		—			—		—			—			—		—			—			—			—
Balance at June 30, 2024		132,231			20,079		$	132		$	20	$	178,148		$	(100,670	)	$	4,143,654	$	4,221,284		$	292,288		$	4,513,572		$	93,576

See accompanying notes to unaudited condensed consolidated financial statements.

SKECHERS U.S.A., INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders' Equity and Redeemable Noncontrolling Interest

(Unaudited)


	Shares						Amount
(in thousands)	Class A Common Stock			Class B Common Stock			Class A Common Stock			Class B Common Stock		Additional paid–in capital			Accumulated other comprehensive loss			Retained earnings		Skechers U.S.A., Inc. equity			Noncontrolling interests			Total stockholders' equity			Redeemable noncontrolling interest
Balance at December 31, 2024		129,854			19,379		$	130		$	19	$	12,170		$	(171,221	)	$	4,436,201	$	4,277,299		$	452,866		$	4,730,165		$	90,099
Net earnings		—			—			—			—		—			—			372,934		372,934			32,752			405,686			2,091
Foreign currency translation adjustment		—			—			—			—		—			99,232			—		99,232			13,472			112,704			10,184
Net changes related to fair value of derivative contract		—			—			—			—		—			—			—		—			(1,367	)		(1,367	)		—
Stock compensation expense		—			—			—			—		49,567			—			—		49,567			—			49,567			—
Proceeds from the employee stock purchase plan		143			—			—			—		7,519			—			—		7,519			—			7,519			—
Shares issued under the incentive award plan		1,472			—			2			—		40			—			—		42			—			42			—
Shares redeemed for employee tax withholdings		(571	)		—			(1	)		—		(31,180	)		—			—		(31,181	)		—			(31,181	)		—
Conversion of Class B Common Stock into Class A Common Stock		65			(65	)		—			—		—			—			—		—			—			—			—
Balance at June 30, 2025		130,963			19,314		$	131		$	19	$	38,116		$	(71,989	)	$	4,809,135	$	4,775,412		$	497,723		$	5,273,135		$	102,374

Balance at December 31, 2023		132,837			20,182		$	133		$	20	$	295,847		$	(73,388	)	$	3,796,730	$	4,019,342		$	290,868		$	4,310,210		$	89,832
Net earnings		—			—			—			—		—			—			346,924		346,924			51,528			398,452			6,450
Foreign currency translation adjustment		—			—			—			—		—			(27,282	)		—		(27,282	)		(9,208	)		(36,490	)		(2,706	)
Distributions to noncontrolling interests		—			—			—			—		—			—			—		—			(39,037	)		(39,037	)		—
Net changes related to fair value of derivative contract		—			—			—			—		—			—			—		—			(1,863	)		(1,863	)		—
Stock compensation expense		—			—			—			—		44,164			—			—		44,164			—			44,164			—
Proceeds from the employee stock purchase plan		137			—			—			—		6,823			—			—		6,823			—			6,823			—
Shares issued under the incentive award plan		1,813			—			2			—		(2	)		—			—		—			—			—			—
Shares redeemed for employee tax withholdings		(786	)		—			(1	)		—		(48,648	)		—			—		(48,649	)		—			(48,649	)		—
Repurchases of common stock		(1,873	)		—			(2	)		—		(120,036	)		—			—		(120,038	)		—			(120,038	)		—
Conversion of Class B Common Stock into Class A Common Stock		103			(103	)		—			—		—			—			—		—			—			—			—
Balance at June 30, 2024		132,231			20,079		$	132		$	20	$	178,148		$	(100,670	)	$	4,143,654	$	4,221,284		$	292,288		$	4,513,572		$	93,576

See accompanying notes to unaudited condensed consolidated financial statements.

SKECHERS U.S.A., INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Six Months Ended June 30,
(in thousands)	2025			2024
Cash flows from operating activities
Net earnings	$	407,777		$	404,902
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization		117,178			99,661
Provision for credit losses and returns		22,377			14,798
Stock compensation		49,567			44,164
Deferred income taxes		15,382			13,378
Net foreign currency adjustments		(43,086	)		11,387
Changes in operating assets and liabilities
Receivables		(89,751	)		(219,915	)
Inventory		90,598			(15,097	)
Other assets		(151,144	)		(88,499	)
Accounts payable		(109,681	)		192,337
Other liabilities		138,961			37,316
Net cash provided by operating activities		448,178			494,432
Cash flows from investing activities
Capital expenditures		(330,723	)		(169,537	)
Proceeds from sale of property, plant and equipment		9,972			—
Purchases of investments		(92,063	)		(121,155	)
Proceeds from sales and maturities of investments		97,856			50,256
Net cash used in investing activities		(314,958	)		(240,436	)
Cash flows from financing activities
Proceeds from the employee stock purchase plan		7,519			6,823
Repayments on long-term borrowings		(165,691	)		(14,808	)
Proceeds from long-term borrowings		145,051			63,885
Net proceeds from (repayments on) short-term borrowings		144,434			(11,894	)
Payments for employee taxes related to stock compensation		(31,181	)		(48,649	)
Repurchases of common stock		—			(120,038	)
Distributions to noncontrolling interests		—			(39,037	)
Net cash provided by (used in) financing activities		100,132			(163,718	)
Effect of exchange rate changes on cash and cash equivalents		27,284			242
Net change in cash and cash equivalents		260,636			90,520
Cash and cash equivalents at beginning of the period		1,116,516			1,189,910
Cash and cash equivalents at end of the period	$	1,377,152		$	1,280,430

Supplemental disclosures of cash flow information
Cash paid during the period for
Interest	$	15,553		$	9,108
Income taxes, net		64,582			93,836
Non-cash transactions
Right-of-use assets exchanged for lease liabilities		312,863			223,600

See accompanying notes to unaudited condensed consolidated financial statements.

SKECHERS U.S.A., INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(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 recurring adjustments and accruals considered necessary to provide a fair statement of the results for the interim periods presented have been included. The December 31, 2024 balance sheet data was derived from audited financial statements; however, the accompanying notes to the unaudited 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 2024 Annual Report on Form 10-K. Certain reclassifications have been made to the unaudited condensed consolidated financial statements in prior years to conform to the current year presentation.

USE OF ESTIMATES

The Company has made a number of estimates and assumptions relating to the reporting of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with GAAP. Significant areas requiring the use of estimates relate primarily to allowances for credit losses, returns and customer chargebacks, inventory reserves, litigation reserves and valuation of deferred income taxes. Actual results could differ materially from those estimates.

PROPOSED MERGER

On May 4, 2025, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Beach Acquisition Co Parent, LLC, a Delaware limited liability company (“Parent”), and Beach Acquisition Merger Sub, Inc., a Delaware corporation and a subsidiary of Parent (“Merger Sub” and together with Parent, the “Buyer Parties”), pursuant to which, subject to the terms and conditions thereof, Merger Sub will merger with and into the Company, with the Company continuing as the surviving corporation and becoming a subsidiary of Parent (the “Merger”).

On the terms and subject to the conditions set forth in the Merger Agreement, each share of Class A common stock of the Company, par value $0.001 per share (the “Class A Common Stock”), and Class B common stock of the Company, par value $0.001 per share (the “Class B Common Stock” and together with Class A Common Stock, the “Company Common Stock”) that is outstanding as of immediately prior to the Effective Time (other than any share of Company Common Stock that is (i) (A) held by the Company and its subsidiaries; (B) owned by the Buyer Parties; or (C) owned by any direct or indirect subsidiary of the Buyer Parties as of immediately prior to the Effective Time or (ii) held by any stockholder who neither voted in favor of the transactions contemplated by the Merger Agreement, including the Merger (collectively, the “Transaction”) nor consented thereto in writing and has properly and validly exercised his, her or its statutory rights of appraisal in respect of such shares of Company Common Stock in accordance with Section 262 of the General Corporation Law of the State of Delaware (such shares, the “Dissenting Company Shares”)) will be cancelled and extinguished and automatically converted into the right to receive either (a) an amount in cash equal to $63.00, without interest thereon, or (b) an amount in cash equal to $57.00 and one limited liability company unit of Parent (the "Mixed Election Consideration"), in each case subject to applicable election procedures.

Consummation of the Transaction is subject to certain customary conditions set forth in the Merger Agreement, including (i) the approval, clearance or expiration under certain specified antitrust laws and foreign investment laws, (ii) the absence of any governmental authority of competent jurisdiction in certain specified jurisdictions issuing any order or other legal restraint that makes consummation of the Transaction illegal or otherwise prohibited, (iii) the Registration Statement on Form S-4 filed in connection with the Transaction has become effective in accordance with the provisions of the Securities Act of 1933, as amended (the “Securities Act”), (iv) at least 20 business days elapsing since the Company’s mailing to the Company’s stockholders of an information statement/prospectus (as contemplated by Regulation 14C of the Exchange Act), and (v) the absence of any Company Material Adverse Effect (as defined in the Merger Agreement) since the date of the Merger Agreement that has occurred that is continuing.

The Merger Agreement contains certain termination rights for the Company and Parent. Upon termination of the Merger Agreement under specified circumstances, the Company will be required to pay Parent a termination fee of approximately $339.9 million. In addition, Parent will be required to pay the Company a termination fee of approximately $534.1 million under certain circumstances if the Merger Agreement is terminated.

During the three months ended June 30, 2025, the Company recognized $9.3 million in transaction costs in connection with the Merger, which are classified within general and administrative expenses in the Consolidated Statements of Earnings.

The foregoing description of the Merger Agreement does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Merger Agreement, a copy of which is attached as Exhibit 2.1 to the Current Report on Form 8-K filed by the Company on May 5, 2025.

Noncontrolling Interests AND REDEEMABLE NONCONTROLLING INTEREST

The Company has equity interests in several joint ventures that were established either to exclusively distribute the Company’s products throughout China, Israel, South Korea, Mexico, and Southeast Asia 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 unaudited condensed consolidated financial statements, even though the Company may not hold a majority equity interest.

During 2024, the Company created the new joint venture, HF Logistics-SKX T3, LLC ("HF-T3"), to support expansion of its North America distribution center. The Company is obligated to contribute $150.0 million, of which $50.0 million was paid during the six months ended June 30, 2025 and $75.0 million was paid during the year ended December 31, 2024. The joint venture partner contributed land with a value of $150.0 million. HF-T3 is fully consolidated in the Company's financial statements.

The Company continues to reassess these relationships based on events and circumstances. The assets of these joint ventures are restricted, as they are not available for general business use outside the context of such joint ventures. The holders of the liabilities of each joint venture have no recourse to the Company.

A joint venture agreement allows the partner, based on certain triggers, to require the Company to repurchase its noncontrolling interest. As the redemption feature is not solely within the control of the Company, the noncontrolling interest is classified within temporary equity as redeemable noncontrolling interest. As of June 30, 2025, it was not probable that the redeemable noncontrolling interest would become redeemable.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair value hierarchy as defined by applicable accounting standards prioritizes the use of inputs used in valuation techniques into the following three levels:

•

Level 1: Quoted market prices in active markets for identical assets or liabilities.

•

Level 2: Other observable market-based inputs or unobservable inputs that are corroborated by market data.

•

Level 3: Unobservable inputs that cannot be corroborated by market data that reflect the reporting entity’s own assumptions.

The Company’s Level 1 investments primarily include money market funds, United States (“U.S.”) Treasury securities and actively traded mutual funds; Level 2 investments primarily include corporate notes and bonds, asset-backed securities and U.S. Agency securities; and the Company does not currently have any Level 3 assets or liabilities. The Company had one Level 2 derivative instrument which is an interest rate swap classified as other assets, net, at December 31, 2024. See Note 4 – Financial Commitments for further information.

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.

RECENT ACCOUNTING PRONOUNCEMENTS

In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The new guidance requires the disclosure of additional information related to certain costs and expenses, including amounts of inventory purchases, employee compensation and selling expenses included in each income statement line item. This update is effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, and shall be applied either prospectively or retrospectively at the option of the Company and early adoption is permitted. The Company is currently evaluating the impact of the new disclosure requirements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures. ASU 2023-09 requires companies to disclose, on an annual basis, specific categories in the effective tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. In addition, ASU 2023-09 requires companies to disclose additional information about income taxes paid. ASU 2023-09 will be effective for annual periods beginning January 1, 2025 and will be applied on a prospective basis with the option to apply the standard retrospectively. Once adopted, the Company expects to include additional income tax disclosures as required by the new guidance. The standard will not have an impact on the Company’s consolidated financial position, results of operations and cash flows.

(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 June 30, 2025
(in thousands)	Adjusted Cost		Fair Value		Cash and Cash Equivalents		Short-Term Investments		Long-Term Investments
Cash	$	1,346,790	$	1,346,790	$	1,346,790	$	—	$	—
Level 1
Money market funds		17,381		17,381		17,381		—		—
U.S. Treasury securities		24,542		24,542		—		15,624		8,918
Mutual funds	N/A			1,890		—		—		1,890
Total level 1		41,923		43,813		17,381		15,624		10,808
Level 2
Corporate notes and bonds		140,984		140,984		9,994		85,145		45,845
Asset-backed securities		22,481		22,481		—		1,311		21,170
U.S. Agency securities		8,341		8,341		2,987		4,174		1,180
Total level 2		171,806		171,806		12,981		90,630		68,195
Total	$	1,560,519	$	1,562,409	$	1,377,152	$	106,254	$	79,003


	As of December 31, 2024
(in thousands)	Adjusted Cost		Fair Value		Cash and Cash Equivalents		Short-Term Investments		Long-Term Investments
Cash	$	1,094,228	$	1,094,228	$	1,094,228	$	—	$	—
Level 1
Money market funds		15,441		15,441		15,441		—		—
U.S. Treasury securities		26,160		26,160		2,849		14,513		8,798
Mutual funds	N/A			2,984		—		—		2,984
Total level 1		41,601		44,585		18,290		14,513		11,782
Level 2
Corporate notes and bonds		129,588		129,588		2,998		85,767		40,823
Asset-backed securities		22,073		22,073		—		257		21,816
U.S. Agency securities		20,091		20,091		1,000		17,933		1,158
Total level 2		171,752		171,752		3,998		103,957		63,797
Total	$	1,307,581	$	1,310,565	$	1,116,516	$	118,470	$	75,579

The Company’s investments consist of U.S. Treasury securities, corporate notes and bonds, asset-backed securities and U.S. agency securities, which the Company has the intent and ability to hold to maturity and therefore are classified as held-to-maturity. The Company holds mutual funds in its deferred compensation plan which are classified as trading securities. The Company may sell certain of its investments prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and duration management. The maturities of the Company’s long-term investments are generally less than two years. The Company minimizes the potential risk of principal loss by investing in highly-rated securities and limiting the amount of credit exposure to any one issuer. Fair values were determined for each individual security in the investment portfolio. Included in long-term investments on the Unaudited Condensed Consolidated Balance Sheets are company owned life insurance contracts of $78.4 million and $71.1 million as of June 30, 2025 and December 31, 2024. Consolidated interest income was $6.7 million and $10.5 million for the three months ended June 30, 2025 and 2024, and $12.1 million and $19.0 million for the six months ended June 30, 2025 and 2024.

When evaluating an investment for its current expected credit losses, the Company reviews factors such as historical experience with defaults, losses, credit ratings, term and macroeconomic trends, including current conditions and forecasts to the extent they are reasonable and supportable.

(3)

Accrued Expenses

Accrued expenses were as follows:


	As of		As of
(in thousands)	June 30, 2025		December 31, 2024
Accrued payroll, taxes, and other	$	203,005	$	166,487
Return reserve liability		67,477		73,088
Accrued inventory purchases		85,813		90,676
Accrued expenses	$	356,295	$	330,251

(4)

Financial Commitments

The Company had $34.6 million and $36.6 million letters of credit as of June 30, 2025 and December 31, 2024. Interest expense was $9.4 million and $4.7 million for the three months ended June 30, 2025 and 2024, and $15.9 million and $9.4 million for the six months ended June 30, 2025 and 2024. The Company was in compliance with all financial covenants as of June 30, 2025.

SHORT-TERM BORROWINGS


		As of		As of
(in thousands)	Expiration Date	June 30, 2025		December 31, 2024
Revolving credit facility - Corporate	December 2026	$	130,000	$	—
Revolving credit facilities - India	Various 2026		20,438		21,209
Other - international facilities

SKECHERS USA INC 10-Q