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As economic uncertainty spurred by Trump’s tariffs takes hold across the footwear industry, Skechers USA Inc. started off fiscal 2025 with record sales, but it’s retracting its yearly guidance.

The Manhattan Beach, Calif.-based footwear company reported net sales in the first quarter of fiscal 2025 of $2.41 billion, a 7.1 percent increase from $2.25 billion the same time last year.

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But while sales were high, net earnings dipped in Q1 to $202.4 million and diluted earnings per share were $1.34, a 2.0 percent decline compared with prior year net earnings of $206.6 million and diluted earnings per share of $1.33 in Q1 2024.

These results are in-line with Skechers guidance for the first quarter. The company said in February that it expected to achieve net sales between $2.40 and $2.43 billion and diluted earnings per share between $1.10 and $1.15 in the period.

Shares for Skechers USA were down over 5 percent in after-market trading on Thursday.

By segment, Skechers noted that its wholesale sales in Q1 grew $110.5 million, or 7.8 percent, including increases in EMEA of 13.0 percent and the Americas of 7.3 percent, partially offset by a decrease in APAC of 0.6 percent.

Direct-to-consumer sales in Q1 grew $49.5 million, or 6.0 percent, including increases in the Americas of 9.8 percent and EMEA of 21.7 percent, partially offset by a decrease in APAC of 4.4 percent.

Robert Greenberg, chief executive officer of Skechers, said in a statement that the company’s record Q1 sales are a “testament to the resilience of our brand as we continue to see broad-based global demand.”

“We believe our distinct value proposition will be even more vital as consumers navigate the current economic volatility,” Greenberg said. “With the flexibility and determination of the entire Skechers organization, we will continue to innovate and deliver best-in-class footwear around the world.”

Skechers CFO John Vandemore echoes Greenberg’s outlook. “We remain confident in our ability to navigate the current market challenges, and know that our proven track record of managing this globally diverse brand with a unique and compelling product portfolio focused on delivering style, comfort, quality and innovation at a reasonable price will enable Skechers to endure and likely thrive during this time,” Vandemore added.

Looking ahead, Skechers said it will not provide financial guidance at this time due to “macroeconomic uncertainty stemming from global trade policies.”