Skechers USA Inc at Raymond James Institutional Investors Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Rakesh Patel - Raymond James - Analyst : And could we start by talking about Europe. It's an area that doesn't get a whole lot of airtime on the calls, but I feel like it's very interesting. We've seen strong growth out there, and it seems that the company has some dry powder. How should we think about the growth potential there?

Question: Rakesh Patel - Raymond James - Analyst : And can you also talk about China? Obviously, a very important market, but also a lot of headwinds going on across the industry. So how do we

Question: Rakesh Patel - Raymond James - Analyst : And can we shift gears and talk about the opportunity by channel. So in the past, you've talked about the importance of the D2C channel, how that should be an outperforming channel over the long term. Should we think that way about the outperformance in 2025 as well and what drives that?

Question: Rakesh Patel - Raymond James - Analyst : And can you double-click on the -- within D2C, how should we think about the potential between stores versus digital? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 12:30PM, SKX.N - Skechers USA Inc at Raymond James Institutional Investors Conference

Question: Rakesh Patel - Raymond James - Analyst : And let's talk about margins. Start with gross margins. I'd love to understand the puts and takes as you think about how this year is shaping up. And obviously, you can't talk about margins this year without talking about the very fluid impact of tariffs. I'd just love to get your thoughts on that?

Question: Rakesh Patel - Raymond James - Analyst : And help us understand investment spending as well. I think Skechers has a track record of investing ahead of growth, and you have a lot of growth ahead of you. So how do we think about the investments you have planned, both this year and what you need over the long term?

Question: Rakesh Patel - Raymond James - Analyst : So let's zoom out and talk about customer acquisition opportunities. Maybe starting off with who your core customer is, and we get that question often from investors. So who is your core customer? And where do you see the opportunity to capture more?

Question: Rakesh Patel - Raymond James - Analyst : And can you tell us where you are with Slip-ins? So a really successful franchise for you. We've seen the commercials. They are great. So like -- it's couple of years in now, like where is it in the maturity curve and where are you seeing incremental gains?

Question: Rakesh Patel - Raymond James - Analyst : Can you also talk about your initiatives around performance footwear. As we think about athletic shoes, there's a lot of competition out there. So where do you see opportunity to add differentiation to the market?

Question: Rakesh Patel - Raymond James - Analyst : And can you help us understand the go-to-market strategy around performance footwear? I believe you spent a bit of time actually creating a product that's new and differentiated. So you have the product now. At what point are you in the seating process and when do you pivot to hit the accelerator? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 12:30PM, SKX.N - Skechers USA Inc at Raymond James Institutional Investors Conference

Question: Rakesh Patel - Raymond James - Analyst : And to wrap things up, can you touch on the balance sheet and your priorities for capital allocation?

Question: Rakesh Patel - Raymond James - Analyst : Great. Well, that's all the time we have. So thank you so much, John, for joining us, and thank you all for your interest.