Alex Grandin's questions to Skechers USA Inc (SKX) leadership • Q1 2025
Question
Alex Grandin of Morgan Stanley asked why Skechers historically maintained a relatively high level of sourcing from China compared to its peers. He also inquired about the amount of non-tariffed inventory on hand and the expected timing for when new tariffs would begin impacting the income statement, as well as the deadline for placing holiday orders.
Answer
Executive John Vandemore explained that sourcing decisions are based on a global view, considering partner capabilities and the fact that two-thirds of the business is outside the U.S. He indicated that the impacts of the current tariff regime would begin to be felt in late Q2 and more acutely in Q3. Regarding holiday orders, he noted that for new products, the deadline is around the present time, with the current environment adding complexity to logistics.