Skechers Withdraws Annual Guidance Amid Trade Uncertainty

Skechers withdrew its annual financial guidance due to ongoing economic uncertainty from the U.S. administration's shifting trade policies, which have led to increased tariffs on Chinese goods and affected global sourcing strategies. The company's shares dropped sharply following the announcement, with the stock down about 25% year-to-date. Although Skechers reported record first-quarter sales of $2.41 billion and earnings per share above analyst expectations, it missed sales estimates and saw a significant decline in China sales. Executives cited the difficulty of planning ahead amid volatile tariff policies, which have raised input costs and complicated production decisions. Despite current challenges, analysts remain optimistic about Skechers’ long-term prospects, citing potential upside for the stock and continued investment in growth markets like China. Skechers, along with other major footwear brands, is diversifying its manufacturing base to mitigate the impact of tariffs.