Skechers U S A Inc (SKX)

Skechers U S A, Inc. (SKX) stock declined by 10.31% due to mixed fourth-quarter 2023 results. The company's bottom line exceeded the Zacks Consensus Estimate, but its top line fell short. Key details below:

• In Q4, Skechers reported earnings of 56 cents per share, surpassing the Zacks Consensus Estimate by 4 cents and marking a 16.7% increase year-over-year. However, its sales of $1,960.9 million missed the consensus estimate of $2,017 million, despite a 4.4% YoY growth. Strong international and domestic direct-to-consumer (DTC) sales drove this growth.
• Gross profit increased 14.5% YoY to $1,041.4 million, with a gross margin of 53.1%. Total operating expenses grew 10.7% YoY to $911.1 million. Selling expenses rose by 15.8%, while general and administrative expenses increased by 9.5%.
• As of December 31, 2023, Skechers held $1,189.9 million in cash and cash equivalents and $72.6 million in short-term investments. The company had long-term borrowings of $242.9 million and shareholders' equity of $4,019.3 million, excluding non-controlling interests. Total inventory decreased by 16.1% YoY to $1,525.4 million. Skechers also repurchased shares and had $265.7 million available for buybacks as of December 31, 2023.