{
  "docId": "019dd923-622c-750b-8b99-4037ee85af93",
  "docSlug": "4c8f29888304",
  "documentTitle": "Skechers U.S.A., Inc. (SKX)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-07-19 00:00:00",
  "orientation": "landscape",
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  "pageNumber": 21,
  "pageCount": 34,
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  "density": "overcrowded",
  "nDataPoints": 156,
  "notes": "The slide uses red boxes to highlight specific data points that support the thesis of inventory mismanagement.",
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  "components": [
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      "bbox": {
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      },
      "kind": "callout",
      "text": "DIOs ended 2021 at historic highs, 24% above pre-COVID averages. Also, accounts payable / inventory is near its historic low. We believe this signals a material inventory aging issue...",
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    {
      "bbox": null,
      "kind": "callout",
      "text": "DIOs ended 2021 at historic highs, 24% above pre-COVID averages. Also, accounts payable / inventory is near its historic low. We believe this signals a material inventory aging issue, as new purchases lag inventory growth.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
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    {
      "bbox": null,
      "kind": "metric",
      "text": "Days Inventory Outstanding: 169",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
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      "componentId": "019dd953-0395-748f-9564-5a89fde74636",
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      "kind": "quote",
      "text": "The valuation of inventory could be impacted by changes in public and consumer preferences, demand for product, changes in the buying patterns of both retailers and consumers and inventory management of customers.",
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      "subkind": "pull-quote",
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    {
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      "kind": "quote",
      "text": "“The valuation of inventory could be impacted by changes in public and consumer preferences, demand for product, changes in the buying patterns of both retailers and consumers and inventory management of customers.” — Skechers 2021 10-K",
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      "kind": "source-note",
      "text": "Source: Skechers latest 10-K filing for fiscal year 2021 vs prior year 2020",
      "attrs": {
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      "kind": "table",
      "text": "Skechers Inventory Analysis table (2009-2021)",
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      "subkind": "data",
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      "kind": "title",
      "text": "We Believe Skechers Is Again Experiencing Inventory Issues That Will Worsen Going Forward",
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      "kind": "title",
      "text": "New Disclosure in Skechers' 2021 10-K Under “Critical Accounting Policies and Use of Estimates”",
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      "subkind": "subtitle",
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  "frameworks": [
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      "evidence": "Highlighting accounting discrepancies and inventory aging to suggest financial misrepresentation.",
      "confidence": 0.9
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      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Struggle",
      "beatSlug": "overcoming-monster-the-struggle",
      "evidence": "The document presents various struggles faced by Skechers, including revenue slowdown and deteriorating profitability",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
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  ],
  "loops": [
    {
      "to": 25,
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      "name": "Iceberg",
      "slug": "10-iceberg",
      "bestFor": "Consulting, complex problem solving, organizational change",
      "matchId": "8e8b36b3-4d9d-4a71-b7f7-244c71868a2c",
      "evidence": "The document analyzes data to highlight deviations from historical norms",
      "position": 1,
      "objective": "Exposing Skechers' inventory issues",
      "structure": "The Symptom (Visible) -> The System (Hidden) -> The Root Cause",
      "confidence": 0.7,
      "description": "Reveal that the visible problem is merely a symptom of a deeper root cause"
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