Tariffs force Sketchers to withdraw 2025 sales guidance

Sketchers has announced that due to “macroeconomic uncertainty stemming from global trade policies”, the company is not providing financial guidance at this time and is withdrawing its annual 2025 guidance. 

The news comes as the group reported a 7.1% increase in sales to $2.41bn (£1.81bn) in Q1 2025, as a result of a 7.2% rise in international sales and a 6.9% increase in domestic sales. 

Its wholesale sales also grew to $110.5m (£82.65m), up 7.8%, including increases in EMEA of 13.0% and AMER of 7.3%, partially offset by a decrease in APAC of 0.6%. 

Wholesale volume and direct-to-consumer volume grew by 9.1% and 6.3%, respectively, while average selling prices declined by 1.3% and 0.3%, respectively.

Additionally, direct-to-consumer sales grew to $49.5m (£37.19m), up 6.0%, including increases in AMER of 9.8% and EMEA of 21.7%, partially offset by a decrease in APAC of 4.4%. 

However, gross margin decreased by 50 basis points to 52.0%, due to lower average selling prices. 

During Q1, the group’s total store count reached 5,318 stores, with domestic stores increasing from 610 to 618 and international stores rising from 1,177 to 1,203. 

The group closed 62 of its distributor, licensee and franchise stores resulting in 3,497 such stores in Q1 2025 compared with 3,509 stores in Q1 2024. 

David Weinberg, chief operating officer of Skechers, said: “For the first quarter, we delivered record quarterly sales of $2.41 billion, reflecting strong global demand across both our wholesale and direct-to-consumer segments with international sales representing 65% of our business. 

“Sales by region increased 14% in EMEA and 8% in the Americas. In APAC, sales decreased 3%; however, when excluding China, sales increased 12%. We believe Skechers has significant growth opportunities in China, and we will continue to invest in product, marketing and infrastructure to expand and support our presence. At the core of our success is our diverse offering of comfort technology products available at accessible prices across a variety of distribution channels.”

He added: “We remain focused on innovation within our established and successful lifestyle collections, growing our high performance footwear offering, and investing in brand demand creation as we continue to drive future growth globally.” 

John Vandemore, chief financial officer, concluded: “We remain confident in our ability to navigate the current market challenges, and know that our proven track record of managing this globally diverse brand with a unique and compelling product portfolio focused on delivering style, comfort, quality and innovation at a reasonable price will enable Skechers to endure and likely thrive during this time.”