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  "docSlug": "4c8f29888304",
  "documentTitle": "Skechers U.S.A., Inc. (SKX)",
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  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-07-19 00:00:00",
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  "pageNumber": 16,
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  "notes": "Uses a 'red flag' icon to signal risk; includes a table calculating implied growth rates for non-Asian markets.",
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      "kind": "callout",
      "text": "We note that Skechers' U.S. revenues, which accounted for approximately 41% of total revenue and 51% of total revenue ex-China in 2021, only grew at double-digit YoY growth rates four times in the four years prior to the pandemic.",
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      "kind": "callout",
      "text": "Applying that rate of revenue contraction to each geography implies that areas outside those markets must grow 15% and 20%, respectively, to meet Street consensus, which we believe is unlikely, particularly given Skechers' challenges in the domestic U.S. market.",
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      "text": "YoY Revenue Growth: 20%",
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      "kind": "paragraph",
      "text": "Based on our China research, we believe Q2 revenues were down approximately -25% YoY, and we believe continued regional COVID restrictions and economic headwinds make it likely that the whole Asia Pacific region is down an equivalent amount.",
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      "kind": "source-note",
      "text": "Source: Skechers Q1 2022 Earnings Press Release, Skechers Q2 2021 10-Q, Bloomberg",
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      "kind": "table",
      "text": "Skechers Q2 2022 Estimated Revenue Analysis table",
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      "text": "We Believe Skechers Will Be Challenged To Meet Revenue Expectations",
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