Footwear Insight

34 • Footwear Insight ~ July/August 2025 footwearinsight.com billion, or 5% more than Skechers' 2024 revenues of $8.97 billion. e transaction is slated to close in Q3. A new privately held company will then be the company's parent, and SKX shares will cease being listed on the NYSE aer 26 years. MACY'S Sales: -5.1% to nearly $4.6 billion, but above company's guidance as omnichannel performed better at all owned nameplates. Operating prot: -24.8% to $94 million from $125 million in the period ended May 3. Gross margin: Flat at 39.2% with a 40-basis-point improvement in merchandise margin oset by higher delivery costs. Key developments: Cautiously optimistic about outlook for remainder of FY. Annual net sales are forecast to range between $21.0 billion and $21.4 billion, with comparable sales between 0.5% and 2.0% year-over-year. Annual gross margin is projected to fall between 30 and 70 basis points. Guidance assumes a more competitive promotional environment for the remainder of FY. Management is faced with navigating tari-related challenges and being disciplined with inventory and pricing. FOOT LOCKER Sales: -4.6% to nearly $1.79 billion, with comparable sales falling 2.6%. North American comps fell 0.5% but international comps declined by 8.5% and were impacted by soness at Foot Locker Europe. Operating prot: Operating loss was $271 million against a prot of $18 million for the period ended May 3. Gross margin: -40 basis points with merchandise margins down by 10 basis points and occupancy costs contributing the other 30 basis points. Key developments: Nearly 51 years aer its inception, Foot Locker, known as Venator Group at one-time before changing its name back, is merging with Dick's Sporting Goods for approximately $2.4 billion. While Foot Locker will likely be operated as a separate business from its new parent, the transaction will instantly enable Dick's to compete in markets outside the U.S. and give it greater buying clout with major footwear brands as it aims to strengthen Foot Locker's position in the overall market. DICK'S SPORTING GOODS Sales: +5.2% to $3,175 million for the period ended May 3. Comparable sales increased 4.5%. Operating prot: +11% to $366.1 million from $330.8 million. Gross margin: Year-over-year grew to 36.7% from 36.29%. Key developments: e FY outlook calls for comparable sales growth of 1% to 3% and total revenues of between $13.6 billion and $13.9 billion. Ended Q1 with 885 locations. Door count will surpass 3,200 aer its acquisition of Foot Locker, rst announced on May 15, is completed. DECKERS Sales: +6.5% to $1.02 billion in Q4 ended June 30, with Hoka sales up 10% and UGG at +4%. For the FY, total revenues grew by 16.3% to $4.99 billion with Hoka +24% to $2.2 billion and UGG +13% to $2.5 billion. Operating prot: +11% to $366.1 million in Q4; +27% to $1.18 billion for the FY. Gross margin: +50 basis points to 56.7% in Q4; +230 basis points to 57.9% for FY. Key developments: Is targeting another scal year of double-digit sales growth, led by a mid-teen increase for Hoka and mid-single-digit improvement for UGG. Cites "macroeconomic uncertainty related to global trade policy" as the reason for not providing FY26 guidance. Anticipated tari costs could hit $150 million, although the company will aim to recover half of the impact. Besides taris, potential gross margin headwinds include higher promotion and freight costs and upgraded material expenses. n BRAND & RETAIL SCORECARD Q2 BASED ON RESULTS REPORTED IN CALENDAR Q2 e brand and retail capsules in the Scorecard oer a deeper dive into some of the companies featured in the Index. e companies highlighted in the Scorecard rotate each issue.

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