Tom Nikic • Wedbush Securities

Answer

Chairman, President & CEO Tim Boyle attributed the European success to a disciplined, focused effort by the local team on key markets like Germany, the UK, and France, combined with an expansion of DTC and partner stores. EVP & CFO Jim Swanson stated that the company sees a path to ending the year with inventory levels flat to slightly down. He reiterated that the Q2 increase was primarily driven by the strategic pull-forward of fall inventory ahead of tariffs.

Ask Fintool Equity Research AI

Answer

President and CEO Patrice Louvet responded that the company's caution is primarily domestic and that they have not observed any slowing brand momentum or anti-American sentiment impacting the business internationally. He attributed this resilience to the brand's foundation in universal values like optimism, authenticity, and family, which resonate globally and transcend politics.

Ask Fintool Equity Research AI

Answer

Executive Co-Chairman Caspar Coppetti gave a direct and firm response, stating, 'We're not seeing any of that.' He clarified there are no cancellations in the order book, attributing the stability to diligent planning and close partnerships with wholesalers to manage sell-through and inventory.

Ask Fintool Equity Research AI

Answer

CFO Susan Healy affirmed that capital allocation plans remain unchanged. She noted that the company expects to generate significant free cash flow under various scenarios and remains committed to its target net leverage range of 1 to 1.5x. Within that framework, they will continue to both pay down debt and opportunistically repurchase shares.

Ask Fintool Equity Research AI

Answer

CEO Andrew Rees stated that the product diversification strategy is in the 'very early innings.' He emphasized that the primary focus remains on strengthening the core Wendy and Wally platforms, as their health is crucial for driving short-term growth and supporting future extensions. He cited the Austin Lift and Bradley boot as successful examples of extending the brand, but reiterated the core remains the priority.

Ask Fintool Equity Research AI

Answer

CEO Ed Rosenfeld detailed a multi-pronged growth strategy for Kurt Geiger. In the U.S., this includes expanding its digital business, rolling out more physical stores, and growing its wholesale presence. Internationally, he sees a large opportunity to leverage Steve Madden's existing network to accelerate Kurt Geiger's expansion. He also noted synergies in using Kurt Geiger's UK presence to expand the Steve Madden brand there.

Ask Fintool Equity Research AI

Answer

Executive John Vandemore responded that while Skechers is not eager to raise prices, its position as a 'reasonable price solution' is an advantage in a challenging consumer environment. Executive David Weinberg addressed inventory planning, stating that the company does not build speculative inventory. He explained that they plan meticulously based on orders from their global direct-to-consumer and wholesale partners and are not in the habit of building excess inventory offshore.

Ask Fintool Equity Research AI

Answer

John Vandemore (executive) confirmed that the expected decline in minority interest is predominantly driven by the challenging performance and outlook for the China joint venture. Regarding inventory, he reiterated that it is in appropriate shape, with on-hand levels up a reasonable 12% and the vast majority of the total increase coming from healthy, order-backed in-transit goods, particularly for Europe.

Ask Fintool Equity Research AI

Answer

Executive David Weinberg confirmed that the consumer response to new technologies in the wholesale channel is incredibly strong and very commensurate with what Skechers has seen in its own DTC channels, especially when partners order the new products. Regarding SG&A, he reiterated that the conscious over-investment in Q2 will not be repeated at the same level, and investment relative to sales growth should be more in line for the rest of the year, though they will continue to invest in stores, distribution, and marketing.

Ask Fintool Equity Research AI

Answer

President and CEO Mary Dillon acknowledged that while the Lace Up plan is showing progress with positive comps and margin expansion, performance was offset by a cautious consumer and a highly promotional marketplace. EVP and CCO Frank Bracken added that the apparel decline was driven more by a category-wide lack of innovation rather than weather, noting that private label apparel remains a bright spot and inventories are clean.

Ask Fintool Equity Research AI

Answer

CEO Mary Dillon reaffirmed long-term commitment to the WSS banner, noting it is well-positioned to serve the growing Latino family demographic, but acknowledged its core customer is currently facing more economic pressure. CCO Frank Bracken added that the WSS management team is sharpening its assortment by focusing on sub-$100 footwear, the culture of football, workwear, and private label offerings to provide better value. He also highlighted that over 70% of WSS stores are in California, where consumers face high inflation.

Ask Fintool Equity Research AI