10-Q 1 skx-10q_20220930.htm 10-Q skx-10q_20220930.htm
false 2022 Q3 SKECHERS USA INC 0001065837 --12-31 true true 0.0300 0.0430 0.0430 0.0300 P3Y 0 0 0 0 0001065837 2022-01-01 2022-09-30 xbrli:shares 0001065837 us-gaap:CommonClassAMember 2022-10-28 0001065837 us-gaap:CommonClassBMember 2022-10-28 iso4217:USD 0001065837 2022-09-30 0001065837 2021-12-31 0001065837 us-gaap:CommonClassAMember 2022-09-30 0001065837 us-gaap:CommonClassAMember 2021-12-31 0001065837 us-gaap:CommonClassBMember 2022-09-30 0001065837 us-gaap:CommonClassBMember 2021-12-31 0001065837 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2022-09-30 0001065837 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2021-12-31 iso4217:USD xbrli:shares 0001065837 2022-07-01 2022-09-30 0001065837 2021-07-01 2021-09-30 0001065837 2021-01-01 2021-09-30 0001065837 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2022-06-30 0001065837 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2022-06-30 0001065837 us-gaap:AdditionalPaidInCapitalMember 2022-06-30 0001065837 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-06-30 0001065837 us-gaap:RetainedEarningsMember 2022-06-30 0001065837 us-gaap:ParentMember 2022-06-30 0001065837 us-gaap:NoncontrollingInterestMember 2022-06-30 0001065837 2022-06-30 0001065837 us-gaap:RetainedEarningsMember 2022-07-01 2022-09-30 0001065837 us-gaap:ParentMember 2022-07-01 2022-09-30 0001065837 us-gaap:NoncontrollingInterestMember 2022-07-01 2022-09-30 0001065837 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-07-01 2022-09-30 0001065837 us-gaap:AdditionalPaidInCapitalMember 2022-07-01 2022-09-30 0001065837 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2022-07-01 2022-09-30 0001065837 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2022-09-30 0001065837 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2022-09-30 0001065837 us-gaap:AdditionalPaidInCapitalMember 2022-09-30 0001065837 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-09-30 0001065837 us-gaap:RetainedEarningsMember 2022-09-30 0001065837 us-gaap:ParentMember 2022-09-30 0001065837 us-gaap:NoncontrollingInterestMember 2022-09-30 0001065837 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2021-06-30 0001065837 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2021-06-30 0001065837 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0001065837 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-06-30 0001065837 us-gaap:RetainedEarningsMember 2021-06-30 0001065837 us-gaap:ParentMember 2021-06-30 0001065837 us-gaap:NoncontrollingInterestMember 2021-06-30 0001065837 2021-06-30 0001065837 us-gaap:RetainedEarningsMember 2021-07-01 2021-09-30 0001065837 us-gaap:ParentMember 2021-07-01 2021-09-30 0001065837 us-gaap:NoncontrollingInterestMember 2021-07-01 2021-09-30 0001065837 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-07-01 2021-09-30 0001065837 us-gaap:AdditionalPaidInCapitalMember 2021-07-01 2021-09-30 0001065837 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2021-07-01 2021-09-30 0001065837 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2021-07-01 2021-09-30 0001065837 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2021-09-30 0001065837 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2021-09-30 0001065837 us-gaap:AdditionalPaidInCapitalMember 2021-09-30 0001065837 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-09-30 0001065837 us-gaap:RetainedEarningsMember 2021-09-30 0001065837 us-gaap:ParentMember 2021-09-30 0001065837 us-gaap:NoncontrollingInterestMember 2021-09-30 0001065837 2021-09-30 0001065837 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2021-12-31 0001065837 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2021-12-31 0001065837 us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0001065837 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-12-31 0001065837 us-gaap:RetainedEarningsMember 2021-12-31 0001065837 us-gaap:ParentMember 2021-12-31 0001065837 us-gaap:NoncontrollingInterestMember 2021-12-31 0001065837 us-gaap:RetainedEarningsMember 2022-01-01 2022-09-30 0001065837 us-gaap:ParentMember 2022-01-01 2022-09-30 0001065837 us-gaap:NoncontrollingInterestMember 2022-01-01 2022-09-30 0001065837 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-01-01 2022-09-30 0001065837 us-gaap:AdditionalPaidInCapitalMember 2022-01-01 2022-09-30 0001065837 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2022-01-01 2022-09-30 0001065837 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2022-01-01 2022-09-30 0001065837 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2020-12-31 0001065837 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2020-12-31 0001065837 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001065837 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0001065837 us-gaap:RetainedEarningsMember 2020-12-31 0001065837 us-gaap:ParentMember 2020-12-31 0001065837 us-gaap:NoncontrollingInterestMember 2020-12-31 0001065837 2020-12-31 0001065837 us-gaap:RetainedEarningsMember 2021-01-01 2021-09-30 0001065837 us-gaap:ParentMember 2021-01-01 2021-09-30 0001065837 us-gaap:NoncontrollingInterestMember 2021-01-01 2021-09-30 0001065837 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-09-30 0001065837 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-09-30 0001065837 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2021-01-01 2021-09-30 0001065837 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2021-01-01 2021-09-30 0001065837 skx:SkechersHongKongLimitedMember 2021-03-01 2021-03-31 skx:Derivative 0001065837 us-gaap:FairValueInputsLevel2Member us-gaap:InterestRateSwapMember 2022-09-30 0001065837 us-gaap:CashMember 2022-09-30 0001065837 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member 2022-09-30 0001065837 us-gaap:FairValueInputsLevel1Member 2022-09-30 0001065837 us-gaap:USTreasurySecuritiesMember us-gaap:FairValueInputsLevel1Member 2022-09-30 0001065837 skx:CorporateNotesAndBondsMember us-gaap:FairValueInputsLevel2Member 2022-09-30 0001065837 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueInputsLevel2Member 2022-09-30 0001065837 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel2Member 2022-09-30 0001065837 us-gaap:FairValueInputsLevel2Member 2022-09-30 0001065837 us-gaap:CashMember 2021-12-31 0001065837 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member 2021-12-31 0001065837 us-gaap:FairValueInputsLevel1Member 2021-12-31 0001065837 us-gaap:USTreasurySecuritiesMember us-gaap:FairValueInputsLevel1Member 2021-12-31 0001065837 skx:CorporateNotesAndBondsMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001065837 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001065837 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001065837 us-gaap:FairValueInputsLevel2Member 2021-12-31 0001065837 srt:MaximumMember 2022-01-01 2022-09-30 0001065837 skx:HFLogisticsOneDistributionCenterLoanMember 2022-09-30 0001065837 skx:HFLogisticsOneDistributionCenterLoanMember 2021-12-31 0001065837 skx:HFLogisticsTwoDistributionCenterConstructionLoanMember 2022-09-30 0001065837 skx:HFLogisticsTwoDistributionCenterConstructionLoanMember 2021-12-31 0001065837 skx:ChinaDistributionCenterConstructionLoanAgreementMember 2022-09-30 0001065837 skx:ChinaDistributionCenterConstructionLoanAgreementMember 2021-12-31 0001065837 country:CN 2022-09-30 0001065837 country:CN 2021-12-31 0001065837 skx:OtherChinaOperationalLoansMember 2022-09-30 0001065837 skx:OtherChinaOperationalLoansMember 2021-12-31 0001065837 skx:TwoThousandNineteenCreditAgreementMember skx:UnsecuredRevolvingCreditFacilityMember 2021-12-15 0001065837 skx:TwoThousandNineteenCreditAgreementMember skx:UnsecuredRevolvingCreditFacilityMember 2019-11-21 0001065837 skx:TwoThousandNineteenCreditAgreementMember skx:UnsecuredRevolvingCreditFacilityMember 2021-12-15 2021-12-15 0001065837 skx:TwoThousandNineteenCreditAgreementMember skx:UnsecuredRevolvingCreditFacilityMember 2019-11-21 2019-11-21 0001065837 skx:TwoThousandNineteenCreditAgreementMember us-gaap:LineOfCreditMember srt:MaximumMember 2021-12-15 0001065837 skx:TwoThousandNineteenCreditAgreementMember us-gaap:LetterOfCreditMember 2021-12-15 0001065837 skx:TwoThousandNineteenCreditAgreementMember skx:SwinglineLoansMember 2021-12-15 0001065837 skx:TwoThousandNineteenCreditAgreementMember us-gaap:RevolvingCreditFacilityMember 2022-09-30 xbrli:pure 0001065837 skx:TwoThousandNineteenCreditAgreementMember 2022-09-30 0001065837 skx:TwoThousandNineteenCreditAgreementMember 2021-12-31 0001065837 us-gaap:LineOfCreditMember skx:TwoThousandNineteenCreditAgreementMember 2021-12-15 2021-12-15 0001065837 skx:HFLogisticsOneDistributionCenterLoanMember skx:AmendmentToAmendedLoanAgreementMember srt:MinimumMember 2022-09-30 0001065837 skx:HFLogisticsOneDistributionCenterLoanMember skx:JointVentureWithHFLogisticsMember skx:AmendmentToAmendedLoanAgreementMember 2022-01-01 2022-09-30 0001065837 skx:HFLogisticsOneDistributionCenterLoanMember us-gaap:InterestRateSwapMember skx:JointVentureWithHFLogisticsMember skx:AmendmentToAmendedLoanAgreementMember us-gaap:LondonInterbankOfferedRateLIBORMember 2022-01-01 2022-09-30 0001065837 us-gaap:InterestRateSwapMember skx:JointVentureWithHFLogisticsMember skx:AmendmentToAmendedLoanAgreementMember us-gaap:LondonInterbankOfferedRateLIBORMember 2022-01-01 2022-09-30 0001065837 us-gaap:InterestRateSwapMember skx:ConstructionLoanAgreementMember skx:HFLogisticsOneDistributionCenterLoanMember skx:JointVentureWithHFLogisticsMember 2022-01-01 2022-09-30 0001065837 us-gaap:InterestRateSwapMember skx:ConstructionLoanAgreementMember skx:HFLogisticsOneDistributionCenterLoanMember skx:JointVentureWithHFLogisticsMember 2020-03-18 0001065837 us-gaap:InterestRateSwapMember skx:ConstructionLoanAgreementMember skx:JointVentureWithHFLogisticsMember 2022-01-01 2022-09-30 0001065837 us-gaap:InterestRateSwapMember 2022-09-30 0001065837 us-gaap:InterestRateSwapMember 2021-12-31 0001065837 skx:HFLogisticsTwoDistributionCenterConstructionLoanMember skx:JointVentureWithHFLogisticsMember skx:TwentyTwentyConstructionLoanAgreementMember 2022-09-30 0001065837 skx:HFLogisticsTwoDistributionCenterConstructionLoanMember skx:JointVentureWithHFLogisticsMember srt:MaximumMember skx:TwentyTwentyConstructionLoanAgreementMember 2022-09-30 0001065837 skx:HFLogisticsTwoDistributionCenterConstructionLoanMember skx:JointVentureWithHFLogisticsMember skx:TwentyTwentyConstructionLoanAgreementMember 2022-01-01 2022-09-30 iso4217:CNY 0001065837 skx:ChinaDistributionCenterConstructionLoanAgreementMember 2022-01-01 2022-09-30 0001065837 skx:ChinaDistributionCenterConstructionLoanAgreementMember us-gaap:SubsequentEventMember 2022-10-18 0001065837 skx:ChinaDistributionCenterConstructionLoanAgreementMember us-gaap:SubsequentEventMember 2022-10-18 2022-10-18 0001065837 srt:MinimumMember skx:OtherChinaOperationalLoansMember skx:OnePointThreeZeroToThreePointFiveZeroPercentageLoansPayableMember 2022-09-30 0001065837 srt:MaximumMember skx:OtherChinaOperationalLoansMember skx:OnePointThreeZeroToThreePointFiveZeroPercentageLoansPayableMember 2022-09-30 0001065837 srt:MinimumMember skx:OtherChinaOperationalLoansMember skx:OnePointZeroZeroToThreePointSevenZeroPercentageLoansPayableMember 2021-12-31 0001065837 srt:MaximumMember skx:OtherChinaOperationalLoansMember skx:OnePointZeroZeroToThreePointSevenZeroPercentageLoansPayableMember 2021-12-31 0001065837 skx:OtherChinaOperationalLoansMember skx:ShanghaiMember 2022-09-30 0001065837 skx:OtherChinaOperationalLoansMember skx:ShanghaiMember 2021-12-31 0001065837 skx:OtherChinaOperationalLoansMember skx:WorkingCapitalLoansMember 2022-09-30 0001065837 skx:OtherChinaOperationalLoansMember skx:WorkingCapitalLoansMember 2021-12-31 0001065837 skx:OtherChinaOperationalLoansMember skx:OfficeBuildingLoansMember 2022-09-30 0001065837 skx:OtherChinaOperationalLoansMember skx:OfficeBuildingLoansMember 2021-12-31 0001065837 us-gaap:CommonClassAMember 2022-01-31 0001065837 us-gaap:PerformanceSharesMember 2022-01-01 2022-09-30 0001065837 us-gaap:PerformanceSharesMember srt:MinimumMember 2022-01-01 2022-09-30 0001065837 us-gaap:PerformanceSharesMember srt:MaximumMember 2022-01-01 2022-09-30 0001065837 skx:TwoThousandSeventeenPlanMember us-gaap:PerformanceSharesMember 2022-09-30 0001065837 skx:TwoThousandSeventeenPlanMember us-gaap:PerformanceSharesMember srt:MaximumMember 2022-09-30 0001065837 us-gaap:RestrictedStockMember 2022-01-01 2022-09-30 0001065837 skx:MarketBasedRestrictedStockMember 2022-01-01 2022-09-30 0001065837 us-gaap:RestrictedStockMember 2021-01-01 2021-09-30 0001065837 us-gaap:PerformanceSharesMember 2021-01-01 2021-09-30 0001065837 skx:MarketBasedRestrictedStockMember 2021-01-01 2021-09-30 0001065837 skx:TwoThousandEighteenEmployeeStockPurchasePlanMember us-gaap:CommonClassAMember 2022-09-30 0001065837 skx:TwoThousandEighteenEmployeeStockPurchasePlanMember 2022-01-01 2022-09-30 0001065837 skx:TwoThousandEighteenEmployeeStockPurchasePlanMember 2022-09-30 0001065837 us-gaap:EmployeeStockMember 2022-07-01 2022-09-30 0001065837 us-gaap:EmployeeStockMember 2021-07-01 2021-09-30 0001065837 us-gaap:EmployeeStockMember 2022-01-01 2022-09-30 0001065837 us-gaap:EmployeeStockMember 2021-01-01 2021-09-30 0001065837 us-gaap:ForeignCountryMember srt:MinimumMember 2022-01-01 2022-09-30 0001065837 us-gaap:ForeignCountryMember srt:MaximumMember 2022-01-01 2022-09-30 skx:Property 0001065837 2021-03-31 0001065837 2021-03-01 2021-03-31 0001065837 skx:WholesaleMember 2022-07-01 2022-09-30 0001065837 skx:WholesaleMember 2021-07-01 2021-09-30 0001065837 skx:WholesaleMember 2022-01-01 2022-09-30 0001065837 skx:WholesaleMember 2021-01-01 2021-09-30 0001065837 skx:DirectToConsumerMember 2022-07-01 2022-09-30 0001065837 skx:DirectToConsumerMember 2021-07-01 2021-09-30 0001065837 skx:DirectToConsumerMember 2022-01-01 2022-09-30 0001065837 skx:DirectToConsumerMember 2021-01-01 2021-09-30 0001065837 skx:WholesaleMember 2022-09-30 0001065837 skx:WholesaleMember 2021-12-31 0001065837 skx:DirectToConsumerMember 2022-09-30 0001065837 skx:DirectToConsumerMember 2021-12-31 0001065837 country:US skx:WholesaleMember 2022-07-01 2022-09-30 0001065837 country:US skx:WholesaleMember 2021-07-01 2021-09-30 0001065837 country:US skx:WholesaleMember 2022-01-01 2022-09-30 0001065837 country:US skx:WholesaleMember 2021-01-01 2021-09-30 0001065837 country:US skx:DirectToConsumerMember 2022-07-01 2022-09-30 0001065837 country:US skx:DirectToConsumerMember 2021-07-01 2021-09-30 0001065837 country:US skx:DirectToConsumerMember 2022-01-01 2022-09-30 0001065837 country:US skx:DirectToConsumerMember 2021-01-01 2021-09-30 0001065837 country:US 2022-07-01 2022-09-30 0001065837 country:US 2021-07-01 2021-09-30 0001065837 country:US 2022-01-01 2022-09-30 0001065837 country:US 2021-01-01 2021-09-30 0001065837 us-gaap:NonUsMember skx:WholesaleMember 2022-07-01 2022-09-30 0001065837 us-gaap:NonUsMember skx:WholesaleMember 2021-07-01 2021-09-30 0001065837 us-gaap:NonUsMember skx:WholesaleMember 2022-01-01 2022-09-30 0001065837 us-gaap:NonUsMember skx:WholesaleMember 2021-01-01 2021-09-30 0001065837 us-gaap:NonUsMember skx:DirectToConsumerMember 2022-07-01 2022-09-30 0001065837 us-gaap:NonUsMember skx:DirectToConsumerMember 2021-07-01 2021-09-30 0001065837 us-gaap:NonUsMember skx:DirectToConsumerMember 2022-01-01 2022-09-30 0001065837 us-gaap:NonUsMember skx:DirectToConsumerMember 2021-01-01 2021-09-30 0001065837 us-gaap:NonUsMember 2022-07-01 2022-09-30 0001065837 us-gaap:NonUsMember 2021-07-01 2021-09-30 0001065837 us-gaap:NonUsMember 2022-01-01 2022-09-30 0001065837 us-gaap:NonUsMember 2021-01-01 2021-09-30 0001065837 srt:AmericasMember 2022-07-01 2022-09-30 0001065837 srt:AmericasMember 2021-07-01 2021-09-30 0001065837 srt:AmericasMember 2022-01-01 2022-09-30 0001065837 srt:AmericasMember 2021-01-01 2021-09-30 0001065837 skx:EuropeMiddleEastAndAfricaMember 2022-07-01 2022-09-30 0001065837 skx:EuropeMiddleEastAndAfricaMember 2021-07-01 2021-09-30 0001065837 skx:EuropeMiddleEastAndAfricaMember 2022-01-01 2022-09-30 0001065837 skx:EuropeMiddleEastAndAfricaMember 2021-01-01 2021-09-30 0001065837 srt:AsiaPacificMember 2022-07-01 2022-09-30 0001065837 srt:AsiaPacificMember 2021-07-01 2021-09-30 0001065837 srt:AsiaPacificMember 2022-01-01 2022-09-30 0001065837 srt:AsiaPacificMember 2021-01-01 2021-09-30 0001065837 country:CN 2022-07-01 2022-09-30 0001065837 country:CN 2021-07-01 2021-09-30 0001065837 country:CN 2022-01-01 2022-09-30 0001065837 country:CN 2021-01-01 2021-09-30 0001065837 country:US 2022-09-30 0001065837 country:US 2021-12-31 0001065837 us-gaap:NonUsMember 2022-09-30 0001065837 us-gaap:NonUsMember 2021-12-31 skx:Customer 0001065837 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2022-07-01 2022-09-30 0001065837 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2021-07-01 2021-09-30 0001065837 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2022-01-01 2022-09-30 0001065837 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2021-01-01 2021-09-30 0001065837 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember skx:FiveLargestCustomersMember 2022-07-01 2022-09-30 0001065837 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember skx:FiveLargestCustomersMember 2021-07-01 2021-09-30 0001065837 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember skx:FiveLargestCustomersMember 2022-01-01 2022-09-30 0001065837 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember skx:FiveLargestCustomersMember 2021-01-01 2021-09-30 0001065837 us-gaap:CostOfGoodsTotalMember us-gaap:SupplierConcentrationRiskMember skx:ManufacturerOneMember 2022-07-01 2022-09-30 0001065837 us-gaap:CostOfGoodsTotalMember us-gaap:SupplierConcentrationRiskMember skx:ManufacturerOneMember 2021-07-01 2021-09-30 0001065837 us-gaap:CostOfGoodsTotalMember us-gaap:SupplierConcentrationRiskMember skx:ManufacturerOneMember 2022-01-01 2022-09-30 0001065837 us-gaap:CostOfGoodsTotalMember us-gaap:SupplierConcentrationRiskMember skx:ManufacturerOneMember 2021-01-01 2021-09-30 0001065837 us-gaap:CostOfGoodsTotalMember us-gaap:SupplierConcentrationRiskMember skx:ManufacturerTwoMember 2022-07-01 2022-09-30 0001065837 us-gaap:CostOfGoodsTotalMember us-gaap:SupplierConcentrationRiskMember skx:ManufacturerTwoMember 2021-07-01 2021-09-30 0001065837 us-gaap:CostOfGoodsTotalMember us-gaap:SupplierConcentrationRiskMember skx:ManufacturerTwoMember 2022-01-01 2022-09-30 0001065837 us-gaap:CostOfGoodsTotalMember us-gaap:SupplierConcentrationRiskMember skx:ManufacturerTwoMember 2021-01-01 2021-09-30 0001065837 us-gaap:CostOfGoodsTotalMember us-gaap:SupplierConcentrationRiskMember skx:ManufacturerThreeMember 2022-07-01 2022-09-30 0001065837 us-gaap:CostOfGoodsTotalMember us-gaap:SupplierConcentrationRiskMember skx:ManufacturerThreeMember 2021-07-01 2021-09-30 0001065837 us-gaap:CostOfGoodsTotalMember us-gaap:SupplierConcentrationRiskMember skx:ManufacturerThreeMember 2022-01-01 2022-09-30 0001065837 us-gaap:CostOfGoodsTotalMember us-gaap:SupplierConcentrationRiskMember skx:ManufacturerThreeMember 2021-01-01 2021-09-30 0001065837 us-gaap:CostOfGoodsTotalMember us-gaap:SupplierConcentrationRiskMember skx:ManufacturerFourMember 2022-07-01 2022-09-30 0001065837 us-gaap:CostOfGoodsTotalMember us-gaap:SupplierConcentrationRiskMember skx:ManufacturerFourMember 2021-07-01 2021-09-30 0001065837 us-gaap:CostOfGoodsTotalMember us-gaap:SupplierConcentrationRiskMember skx:ManufacturerFourMember 2022-01-01 2022-09-30 0001065837 us-gaap:CostOfGoodsTotalMember us-gaap:SupplierConcentrationRiskMember skx:ManufacturerFourMember 2021-01-01 2021-09-30 0001065837 us-gaap:CostOfGoodsTotalMember us-gaap:SupplierConcentrationRiskMember skx:ManufacturerFiveMember 2022-07-01 2022-09-30 0001065837 us-gaap:CostOfGoodsTotalMember us-gaap:SupplierConcentrationRiskMember skx:ManufacturerFiveMember 2021-07-01 2021-09-30 0001065837 us-gaap:CostOfGoodsTotalMember us-gaap:SupplierConcentrationRiskMember skx:ManufacturerFiveMember 2022-01-01 2022-09-30 0001065837 us-gaap:CostOfGoodsTotalMember us-gaap:SupplierConcentrationRiskMember skx:ManufacturerFiveMember 2021-01-01 2021-09-30 0001065837 us-gaap:CostOfGoodsTotalMember us-gaap:SupplierConcentrationRiskMember skx:TopFiveManufacturersMember 2022-07-01 2022-09-30 0001065837 us-gaap:CostOfGoodsTotalMember us-gaap:SupplierConcentrationRiskMember skx:TopFiveManufacturersMember 2021-07-01 2021-09-30 0001065837 us-gaap:CostOfGoodsTotalMember us-gaap:SupplierConcentrationRiskMember skx:TopFiveManufacturersMember 2022-01-01 2022-09-30 0001065837 us-gaap:CostOfGoodsTotalMember us-gaap:SupplierConcentrationRiskMember skx:TopFiveManufacturersMember 2021-01-01 2021-09-30

 

 

 

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 September 30, 2022

or

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 October 28, 2022, 134,212,238 shares of the registrant’s Class A Common Stock, $0.001 par value per share, were outstanding.

As of October 28, 2022, 20,888,571 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 Equity (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

17

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

22

Item 4.

Controls and Procedures

23

 

 

 

PART II – OTHER INFORMATION

 

Item 1.

Legal Proceedings

24

Item 1A.

Risk Factors

24

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

24

Item 3.

Defaults Upon Senior Securities

25

Item 4.

Mine Safety Disclosures

25

Item 5.

Other Information

25

Item 6.

Exhibits

25

 

Signatures

26

 

 

 

2


 

 

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)

 

September 30, 2022

 

 

December 31, 2021

 

ASSETS

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

508,281

 

 

$

796,283

 

Short-term investments

 

 

102,986

 

 

 

98,580

 

Trade accounts receivable, less allowances of $58,818 and $62,684

 

 

933,908

 

 

 

732,793

 

Other receivables

 

 

75,075

 

 

 

80,043

 

Inventory

 

 

1,779,369

 

 

 

1,470,994

 

Prepaid expenses and other

 

 

182,260

 

 

 

193,547

 

Total current assets ($996,197 and $1,040,765 related to VIEs)

 

 

3,581,879

 

 

 

3,372,240

 

Property, plant and equipment, net

 

 

1,289,520

 

 

 

1,128,909

 

Operating lease right-of-use assets

 

 

1,117,951

 

 

 

1,224,580

 

Deferred tax assets

 

 

448,179

 

 

 

451,355

 

Long-term investments

 

 

70,242

 

 

 

145,590

 

Goodwill

 

 

93,497

 

 

 

93,497

 

Other assets, net

 

 

77,371

 

 

 

75,109

 

Total non-current assets ($587,295 and $608,607 related to VIEs)

 

 

3,096,760

 

 

 

3,119,040

 

TOTAL ASSETS

 

$

6,678,639

 

 

$

6,491,280

 

LIABILITIES AND EQUITY

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

925,907

 

 

$

876,342

 

Accrued expenses

 

 

261,577

 

 

 

265,420

 

Operating lease liabilities

 

 

221,396

 

 

 

225,658

 

Current installments of long-term borrowings

 

 

136,930

 

 

 

76,967

 

Short-term borrowings

 

 

31,013

 

 

 

1,195

 

Total current liabilities ($566,888 and $601,929 related to VIEs)

 

 

1,576,823

 

 

 

1,445,582

 

Long-term operating lease liabilities

 

 

996,414

 

 

 

1,094,748

 

Long-term borrowings

 

 

225,505

 

 

 

263,445

 

Deferred tax liabilities

 

 

11,739

 

 

 

11,820

 

Other long-term liabilities

 

 

119,288

 

 

 

133,613

 

Total non-current liabilities ($309,923 and $368,994 related to VIEs)

 

 

1,352,946

 

 

 

1,503,626

 

Total liabilities

 

 

2,929,769

 

 

 

2,949,208

 

Commitments and contingencies (Note 10)

 

 

 

 

 

 

 

 

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;

   134,212 and 135,107 shares issued and outstanding

 

 

134

 

 

 

135

 

Class B Common Stock, $0.001 par value; 75,000 shares authorized;

   20,889 and 20,939 shares issued and outstanding

 

 

21

 

 

 

21

 

Additional paid-in capital

 

 

387,459

 

 

 

429,608

 

Accumulated other comprehensive loss

 

 

(104,326

)

 

 

(48,323

)

Retained earnings

 

 

3,175,416

 

 

 

2,877,903

 

Skechers U.S.A., Inc. equity

 

 

3,458,704

 

 

 

3,259,344

 

Noncontrolling interests

 

 

290,166

 

 

 

282,728

 

Total stockholders' equity

 

 

3,748,870

 

 

 

3,542,072

 

TOTAL LIABILITIES AND EQUITY

 

$

6,678,639

 

 

$

6,491,280

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

3


 

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

Condensed Consolidated Statements of Earnings

(Unaudited)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(in thousands, except per share data)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Sales

 

$

1,878,367

 

 

$

1,558,476

 

 

$

5,565,765

 

 

$

4,654,802

 

Cost of sales

 

 

994,432

 

 

 

781,513

 

 

 

2,960,088

 

 

 

2,338,588

 

Gross profit

 

 

883,935

 

 

 

776,963

 

 

 

2,605,677

 

 

 

2,316,214

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling

 

 

150,857

 

 

 

127,845

 

 

 

425,675

 

 

 

360,640

 

General and administrative

 

 

603,107

 

 

 

502,871

 

 

 

1,719,969

 

 

 

1,450,449

 

Total operating expenses

 

 

753,964

 

 

 

630,716

 

 

 

2,145,644

 

 

 

1,811,089

 

Earnings from operations

 

 

129,971

 

 

 

146,247

 

 

 

460,033

 

 

 

505,125

 

Other expense

 

 

(15,139

)

 

 

(8,049

)

 

 

(40,144

)

 

 

(20,065

)

Earnings before income taxes

 

 

114,832

 

 

 

138,198

 

 

 

419,889

 

 

 

485,060

 

Income tax expense

 

 

20,498

 

 

 

21,497

 

 

 

83,229

 

 

 

92,027

 

Net earnings

 

 

94,334

 

 

 

116,701

 

 

 

336,660

 

 

 

393,033

 

Less: Net earnings attributable to noncontrolling interests

 

 

8,448

 

 

 

13,562

 

 

 

39,147

 

 

 

53,952

 

Net earnings attributable to Skechers U.S.A., Inc.

 

$

85,886

 

 

$

103,139

 

 

$

297,513

 

 

$

339,081

 

Net earnings per share attributable to Skechers U.S.A., Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.55

 

 

$

0.66

 

 

$

1.91

 

 

$

2.18

 

Diluted

 

$

0.55

 

 

$

0.66

 

 

$

1.90

 

 

$

2.17

 

Weighted-average shares used in calculating net earnings per share attributable to Skechers U.S.A., Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

155,420

 

 

 

155,835

 

 

 

155,783

 

 

 

155,413

 

Diluted

 

 

156,233

 

 

 

157,123

 

 

 

156,714

 

 

 

156,590

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

4


 

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

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(in thousands)

2022

 

 

2021

 

 

2022

 

 

2021

 

Net earnings

 

$

94,334

 

 

$

116,701

 

 

$

336,660

 

 

$

393,033

 

Other comprehensive income, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gain on derivative contract

 

 

3,113

 

 

 

200

 

 

 

10,210

 

 

 

1,823

 

Loss on foreign currency translation adjustment

 

 

(42,888

)

 

 

(13,027

)

 

 

(83,628

)

 

 

(22,520

)

Comprehensive income

 

 

54,559

 

 

 

103,874

 

 

 

263,242

 

 

 

372,336

 

Less: Comprehensive income (loss) attributable to noncontrolling interests

 

 

(2,785

)

 

 

10,255

 

 

 

20,979

 

 

 

50,480

 

Comprehensive income attributable to Skechers U.S.A., Inc.

 

$

57,344

 

 

$

93,619

 

 

$

242,263

 

 

$

321,856

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

5


 

 

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

Condensed Consolidated Statements of Equity

(Unaudited)

 

 

 

Shares

 

 

Amount

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A

 

 

Class B

 

 

Class A

 

 

Class B

 

 

Additional

 

 

other

 

 

 

 

 

 

Skechers

 

 

 

 

 

 

Total

 

 

 

Common

 

 

Common

 

 

Common

 

 

Common

 

 

paid-in

 

 

comprehensive

 

 

Retained

 

 

U.S.A., Inc.

 

 

Noncontrolling

 

 

stockholders'

 

(in thousands)

 

Stock

 

 

Stock

 

 

Stock

 

 

Stock

 

 

capital

 

 

loss

 

 

earnings

 

 

equity

 

 

interests

 

 

equity

 

Balance at June 30, 2022

 

 

134,845

 

 

 

20,889

 

 

$

135

 

 

$

21

 

 

$

402,360

 

 

$

(75,784

)

 

$

3,089,530

 

 

$

3,416,262

 

 

$

301,842

 

 

$

3,718,104

 

Net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

85,886

 

 

 

85,886

 

 

 

8,448

 

 

 

94,334

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(28,542

)

 

 

 

 

 

(28,542

)

 

 

(14,346

)

 

 

(42,888

)

Distributions to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,891

)

 

 

(8,891

)

Net unrealized gain on derivative contract

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,113

 

 

 

3,113

 

Stock compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,223

 

 

 

 

 

 

 

 

 

10,223

 

 

 

 

 

 

10,223

 

Shares issued under the incentive award plan

 

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares redeemed for employee tax withholdings

 

 

(4

)

 

 

 

 

 

 

 

 

 

 

 

(112

)

 

 

 

 

 

 

 

 

(112

)

 

 

 

 

 

(112

)

Repurchases of common stock

 

 

(639

)

 

 

 

 

 

(1

)

 

 

 

 

 

(25,012

)

 

 

 

 

 

 

 

 

(25,013

)

 

 

 

 

 

(25,013

)

Balance at September 30, 2022

 

 

134,212

 

 

 

20,889

 

 

$

134

 

 

$

21

 

 

$

387,459

 

 

$

(104,326

)

 

$

3,175,416

 

 

$

3,458,704

 

 

$

290,166

 

 

$

3,748,870

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2021

 

 

134,884

 

 

 

20,949

 

 

$

135

 

 

$

21

 

 

$

395,951

 

 

$

(34,990

)

 

$

2,372,342

 

 

$

2,733,459

 

 

$

280,645

 

 

$

3,014,104

 

Net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

103,139

 

 

 

103,139

 

 

 

13,562

 

 

 

116,701

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,520

)

 

 

 

 

 

(9,520

)

 

 

(3,507

)

 

 

(13,027

)

Contributions from noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,717

 

 

 

6,717

 

Distributions to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,126

)

 

 

(7,126

)

Net unrealized gain on derivative contract

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

200

 

 

 

200

 

Stock compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,664

 

 

 

 

 

 

 

 

 

14,664

 

 

 

 

 

 

14,664

 

Shares issued under the incentive award plan

 

 

14