Skechers Q2 Revenue Surges 13% YoY, EPS Falls Short

Skechers reported Q2 revenue of $2.44 billion, a 13% YoY increase and exceeding expectations. However, non-GAAP EPS of $0.83 fell short by $0.03. Wall Street analysts maintain a "Hold" recommendation with an average price target of $62.17, suggesting a potential downside of 1.25% from the current trading price of $62.96.

Skechers (NYSE: SKX) reported its second quarter (Q2) 2025 earnings, with net sales reaching $2.44 billion, a 13.1% year-over-year (YoY) increase that exceeded analyst expectations [1]. The company's revenue surpassed the projected range of $2.3 billion to $2.38 billion, as per Yahoo Finance. This growth was driven by a 15.0% increase in wholesale sales and an 11.0% rise in direct-to-consumer sales.

However, the company's non-GAAP earnings per share (EPS) of $0.83 fell short by $0.03 of the expected $0.86, according to Seeking Alpha [2]. Despite the EPS miss, Skechers' net earnings increased to $170.5 million, a 21.5% improvement over the prior year's net earnings of $140.3 million [1].

The quarter's results come amidst Skechers' ongoing efforts to go private. In May, the company announced a $9 billion go-private deal with Brazilian private-equity firm 3G Capital, which would be the largest shoe buyout in history [1]. The deal structure includes one election at $63 a share and another at $57 a share, with an additional unlisted, non-transferable equity unit in a newly formed entity that will become the parent of Skechers upon the closing of the transaction [1].

Wall Street analysts maintain a "Hold" recommendation on Skechers stock, with an average price target of $62.17, suggesting a potential downside of 1.25% from the current trading price of $62.96 [2]. The company's strong cash position, with $1.377 billion in cash and cash equivalents, and a robust operating cash flow of $448.2 million for the six months ended June 30, 2025, provide a solid foundation for its ongoing operations and future growth [3].

References:
[1] https://wwd.com/footwear-news/shoe-industry-news/skechers-skx-q2-2025-earnings-1238032809/
[2] https://seekingalpha.com/news/4482987-skechers-non-gaap-eps-of-083-misses-by-003-revenue-of-244b-beats-by-90m
[3] https://www.stocktitan.net/sec-filings/SKX/10-q-skechers-u-s-a-inc-quarterly-earnings-report-aec298f34d15.html