{
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  "docSlug": "4c8f29888304",
  "documentTitle": "Skechers U.S.A., Inc. (SKX)",
  "authorId": "54_Spruce_Point_Capital",
  "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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  "notes": "The slide uses a red flag icon to signal a warning or contradiction.",
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      "kind": "callout",
      "text": "Some analysts have lauded Skechers for making small positive changes in its communications... However, we see a sustained effort by the Company to reduce reporting transparency over the past two years.",
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      "text": "We find the timing of these changes suspicious given the other decreases in transparency to be discussed.",
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      "kind": "list",
      "text": "Recent Reporting Changes: Beginning in Q1 2022, Skechers changed its reporting segments for revenue; As a result, joint venture activities are now bifurcated; In addition, the Company has moved royalty income, digital platform costs, and augmented geographic reporting.",
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      "text": "Spruce Point Reaction and Observations on Skechers' Disclosure: We find the timing of these changes suspicious... Why does revenue segmentation still fail to provide channel clarity? Why is e-commerce still split? Why reallocate digital platform costs?",
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      "kind": "source-note",
      "text": "Source: Skechers presentation on new segment reporting published 4/14/2022",
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      "kind": "title",
      "text": "We Believe Skechers' Reporting Practices Obfuscate The True Underlying Drivers of the Business",
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      "name": "Cost Of Inaction",
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      "evidence": "The document presents valuation tables and comparison tables to support the argument",
      "position": 2,
      "objective": "Highlighting the consequences of Skechers' deteriorating profitability",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
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