SKX

Skechers U.S.A., Inc.

HALAL

Score: 84/100

stock

Is SKX Halal?

Designer and marketer of lifestyle and performance footwear and apparel — a permissible consumer-products business with a strong, low-leverage balance sheet.

What You Should Know

Skechers U.S.A., Inc. is a publicly-traded designer, developer, and marketer of lifestyle and performance footwear, apparel, and accessories sold through wholesale, direct-to-consumer, and international distribution channels worldwide. Designing and selling footwear and apparel is a permissible activity at the activity level under standard Sharia methodology; Skechers earns product revenue rather than interest. The company operates with a comparatively low-leverage balance sheet and a healthy cash position, so it generally passes the debt-to-market-cap screen; the primary financial-screen considerations are the interest income generated by its cash and short-term investments and the receivables balance from its wholesale channel, small portions of which should be verified and purified. Subject to confirming ratios at the time of investment, most major Sharia advisory boards classify Skechers as permissible with purification of small interest-income components.

⚠️ Concerns

•Skechers holds cash and short-term investments that generate interest income — verify the interest-income-to-revenue ratio against the 5% threshold and purify the corresponding portion of any returns
•Debt-to-market-cap ratio should be confirmed against the 33% Sharia threshold at the time of investment, though Skechers typically operates with modest leverage relative to its cash position
•The receivables-to-assets ratio from the wholesale channel should be checked against the preferred board's threshold (49–70%)
•As a footwear and apparel brand, Skechers's revenue and margins are sensitive to consumer spending, freight, and inventory cycles — this is a business and valuation consideration rather than a Sharia screen concern