Skechers reported record first-quarter 2025 sales of $2.41 billion, a 7.1% increase year-over-year (9.0% on a constant currency basis). This growth was supported by a 7.8% rise in wholesale sales and a 6.0% increase in direct-to-consumer sales. International markets accounted for 65% of total revenue, with regional gains of 14% in EMEA and 8% in the Americas, while APAC declined 3% overall but grew 12% when excluding China.

Gross margin declined slightly by 50 basis points to 52.0%, due to lower average selling prices. Operating expenses rose 12.1% to $989 million, driven by increased global marketing spend and higher G&A costs such as rent, labor, and depreciation. This led to an 11.3% drop in operating income to $265.1 million and a 230 basis point decline in operating margin to 11.0%. Net earnings attributable to Skechers were $202.4 million, or $1.34 per diluted share, compared to $206.6 million and $1.33 in the prior year. The current quarter included a $0.17 per share favorable FX impact.

Cash and equivalents decreased to $993 million, while inventory dropped 7.6% to $1.77 billion. The company opened 101 stores and closed 79 during the quarter, bringing its total to 5,318 globally. Despite the strong performance, Skechers withdrew its full-year 2025 guidance due to global macroeconomic uncertainty, including trade policy, inflation, and FX volatility.