Skechers U.S.A. (NYSE:SKX) saw its shares plummet over 10% intra-day today after reporting fourth-quarter earnings that fell short of analyst expectations and issuing a weaker-than-expected outlook for 2025. Despite record annual sales, investors reacted negatively to the company’s cautious guidance.

For Q4, Skechers posted adjusted earnings per share of $0.65, missing the consensus estimate of $0.74. Revenue reached $2.21 billion, slightly below analysts’ expectations of $2.22 billion, though it marked a solid 12.8% year-over-year increase.

Looking ahead, Skechers expects 2025 earnings per share between $4.30 and $4.50, falling well short of Wall Street’s $4.85 projection. Full-year revenue is forecasted at $9.7 billion to $9.8 billion, also missing the $9.87 billion consensus.

Despite the disappointing guidance, the company highlighted its strong 2024 performance, with full-year revenue hitting a record $8.97 billion, or $9.04 billion on a constant currency basis. Wholesale sales surged 17.5% in Q4 to $1.13 billion, while direct-to-consumer revenue climbed 8.4% to $1.08 billion. Gross margin saw a modest improvement to 53.3% from 53.1% a year earlier.

While Skechers continues to benefit from global consumer demand and effective marketing strategies, its tempered 2025 outlook suggests potential challenges ahead, weighing heavily on investor sentiment.