Start Time: 16:30 January 1, 0000 5:14 PM ET

Skechers U.S.A., Inc. (NYSE:SKX)

Q2 2023 Earnings Conference Call

July 27, 2023, 16:30 PM ET

Company Participants

David Weinberg - COO

John Vandemore - CFO

Shannon Butler - FP&A

Conference Call Participants

Jay Sole - UBS

Laurent Vasilescu - BNP Paribas

Gaby Carbone - Deutsche Bank

John Kernan - Cowen and Company

Tom Nikic - Wedbush Securities

Abbie Zvejnieks - Piper Sandler

Operator

Greetings, and welcome to Skechers Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded.

I would now like to turn the conference over to Skechers. Thank you. You may begin.

Shannon Butler

Hello, everyone. My name is Shannon Butler from the FP&A team. Thank you for joining us on Skechers conference call today.

I will now read the Safe Harbor statement. Certain statements contained herein, including, without limitation, statements addressing the beliefs, plans, objectives, estimates or expectations of the company or future results or events may constitute forward-looking statements that involve risks and uncertainties.

Such forward-looking statements involve known and unknown risks, including, but not limited to, global, national and local, economic, business and market conditions, including the impact of inflation, foreign currency fluctuations, Russia's war with Ukraine and supply chain delays and disruptions in general and specifically as they apply to the retail industry and the company.

There can be no assurance that the actual future results, performance or achievements expressed or implied by any of our forward-looking statements will occur. Users of forward-looking statements are encouraged to review the company's filings with the U.S. Securities and Exchange Commission, including the most recent annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all other reports filed with the SEC as required by federal securities laws for a description of all other significant risk factors that may affect the company's business, financial conditions, cash flows and results of operations.

With that, I would like to turn the call over to Skechers' Chief Operating Officer, David Weinberg; and Chief Financial Officer, John Vandemore. David?

David Weinberg

Thank you for joining us today on our second quarter 2023 conference call. Our results exceeded expectations with a new sales record of 2.13 billion and gross margin of 52.7%. These results are due to a 29% gain in our direct-to-consumer segment, double digit growth internationally, and our focus on innovation throughout the business.