As Skechers U.S.A., Inc. (SKX Quick QuoteSKX - Free Report) gears up to unveil its first-quarter 2025 earnings results on April  24, after the market closes, investors are eager to gauge the company's performance. Known for its innovative footwear and strong brand presence, Skechers has been navigating through changing market dynamics and evolving consumer preferences.

The company is expected to register an increase in the top line. The Zacks Consensus Estimate for revenues stands at $2.44 billion, which indicates a notable 8.3% improvement from the prior-year figure.

The Zacks Consensus Estimate for first-quarter earnings per share has been stable at $1.18 over the past 30 days, which suggests a decline of 11.3% from the year-ago period. Skechers has a trailing four-quarter earnings surprise of 3.8%, on average. In the last reported quarter, the company’s bottom line missed the Zacks Consensus Estimate by a margin of 12.2%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Key Factors to Observe for Skechers' Q1 Earnings

Skechers is benefiting from strong brand positioning and diversified expansion across multiple performance categories such as soccer, basketball and cricket. These new verticals are not only enhancing brand relevance but also opening up fresh opportunities in key global markets. The inclusion of world-class athletes in marketing and product development is bolstering Skechers' credibility and recognition in sports performance.

One of the brightest spots in Skechers' strategy is its expanding footprint across high-potential international regions. The company is seeing healthy demand in India, South Korea, Japan and Thailand. In the EMEA, growth remains decent, while China, though facing broader macro headwinds, still shows promise through store expansion and intensified marketing.

Skechers is making notable progress in both its wholesale and direct-to-consumer (DTC) segments. Wholesale continues to benefit from elevated demand for comfort-driven and innovative footwear, especially in North America and Europe. Meanwhile, its direct-to-consumer business is expanding through the rollout of new stores, enhanced digital experiences and unique retail formats such as the interactive performance store in Canada. 

For the first quarter, the Zacks Consensus Estimate for wholesale sales is projected at $1,554 million, indicating year-over-year growth of 9.3%. The consensus estimate for DTC sales is pegged at $885.3 million, suggesting an increase of 6.7% from the year-ago period.

While the aforementioned factors raise optimism, investors should remain cautious of macroeconomic headwinds. The company is facing challenges related to unfavorable foreign currency exchange rates that have impacted earnings in the fourth quarter. Furthermore, the implementation of global minimum tax regulations is expected to increase Skechers' effective tax rate, raising concerns about profitability. Adding to the pressure are tariffs on Chinese imports, which could negatively affect margins.

What the Zacks Model Says About Skechers

As investors prepare for Skechers’ first-quarter results, the question looms regarding earnings beat or miss. Our proven model does not conclusively predict an earnings beat for Skechers this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here. 

Skechers carries a Zacks Rank #3 but has an Earnings ESP of -1.54%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

3 Stocks With the Favorable Combination

Here are three companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:

Tapestry (TPR Quick QuoteTPR - Free Report) currently has an Earnings ESP of +3.07% and a Zacks Rank of 2 (Buy). TPR's top line is anticipated to increase year over year when it reports third-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.53 billion, which suggests a 3% jump from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is expected to register an increase in the bottom line. The consensus estimate for Tapestry’s third-quarter earnings is pegged at 88 cents a share, up 8.6% from the year-ago quarter. TPR has a trailing four-quarter earnings surprise of 11.9%, on average.

Deckers (DECK Quick QuoteDECK - Free Report) has an Earnings ESP of +6.75% and currently carries a Zacks Rank of 3. DECK's top line is anticipated to advance year over year when it reports fourth-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $983.4 million, which suggests a 2.5% jump from the figure reported in the year-ago quarter. 

The company is expected to register a decrease in the bottom line. The consensus estimate for Deckers’ fourth-quarter earnings is pegged at 55 cents a share, down 33.7% from the year-ago quarter. DECK has a trailing four-quarter earnings surprise of 36.8%, on average.

Capri Holdings (CPRI Quick QuoteCPRI - Free Report) has an Earnings ESP of +1.24% and carries a Zacks Rank of 3 at present. CPRI is likely to register a top-line decline when it reports fourth-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $982.8 million, which suggests a 19.6% decline from the figure reported in the year-ago quarter. 

The consensus estimate for Capri Holdings’ fourth-quarter bottom line is pegged at a loss of 16 cents a share. CPRI has a trailing four-quarter negative earnings surprise of 43.9%, on average.