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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 333-287891

BEACH ACQUISITION CO PARENT, LLC

(Exact name of registrant as specified in its charter)

      Delaware

     33-4932106

     (State or other jurisdiction of
incorporation or organization)

     (I.R.S. Employer
Identification No.)

     c/o 3G Capital Partners L.P.
600 Third Avenue, 37th Floor
New York, New York

     10016

     (Address of principal executive office)

     (Zip Code)

(212) 893-6727

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol	Name of each exchange on which registered
None	N/A	N/A

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 4, 2025, the registrant had 154,112,345 common units issued and outstanding.

As of November 4, 2025, the registrant had no Class P units issued and outstanding.

BEACH ACQUISITION CO PARENT, LLC AND SUBSIDIARIES

Form 10-Q

Table of Contents


PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets (Unaudited)	3
	Condensed Consolidated Statements of Earnings (Loss) (Unaudited)	5
	Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)	7
	Condensed Consolidated Statements of Members' Equity, Redeemable Noncontrolling Interest and Redeemable Common Units (Unaudited)	8
	Condensed Consolidated Statements of Stockholders' Equity and Redeemable Noncontrolling Interest (Unaudited)	9
	Condensed Consolidated Statements of Cash Flows (Unaudited)	11
	Notes to Condensed Consolidated Financial Statements (Unaudited)	13
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	39
Item 4.	Controls and Procedures	39

PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	39
Item 1A.	Risk Factors	41
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	41
Item 3.	Defaults Upon Senior Securities	41
Item 4.	Mine Safety Disclosures	41
Item 5.	Other Information	41
Item 6.	Exhibits	42
	Signatures	43

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

BEACH ACQUISITION CO PARENT, LLC AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited)


	Successor			Predecessor
	As of			As of
(in thousands, except par value)	September 30, 2025			December 31, 2024
ASSETS
Current assets
Cash and cash equivalents	$	2,303,225		$	1,116,516
Short-term investments		1,542			118,470
Trade accounts receivable, less allowances of $969 and $66,616		1,155,392			990,558
Other receivables		117,858			98,499
Inventory		2,086,778			1,919,386
Prepaid expenses and other		270,878			205,994
Total current assets ($1,501,827 and $1,413,643 related to VIEs)		5,935,673			4,449,423
Property, plant and equipment, net		2,225,305			1,834,930
Operating lease right-of-use assets		1,545,790			1,363,596
Deferred tax assets		372,450			440,358
Long-term investments		85,969			146,687
Intangible assets, net		5,039,833			49,924
Goodwill		1,489,831			94,494
Other assets, net		122,342			76,346
Total non-current assets ($1,098,224 and $861,175 related to VIEs)		10,881,520			4,006,335
TOTAL ASSETS	$	16,817,193		$	8,455,758
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, REDEEMABLE COMMON UNITS AND STOCKHOLDERS' & MEMBERS' EQUITY
Current liabilities
Accounts payable	$	1,131,062		$	1,241,838
Accrued expenses		806,156			330,251
Operating lease liabilities		325,419			297,926
Current installments of long-term borrowings		378,116			353,131
Short-term borrowings		64,481			33,338
Total current liabilities ($905,878 and $846,986 related to VIEs)		2,705,234			2,256,484
Long-term operating lease liabilities		1,350,064			1,176,290
Long-term borrowings		6,340,480			68,450
Deferred tax liabilities		1,282,731			11,148
Other long-term liabilities		133,441			123,122
Total non-current liabilities ($208,850 and $170,341 related to VIEs)		9,106,716			1,379,010
Total liabilities		11,811,950			3,635,494
Commitments and contingencies (Note 13)
Redeemable noncontrolling interest		62,891			90,099
Redeemable Common Units, 23,201 units issued and outstanding		672,833			—
Beach Acquisition members’ equity
Members' capital, Common Units, 130,911 units issued and outstanding; Class P Units, no units issued and outstanding		3,838,604			—
Accumulated other comprehensive loss		(577	)		—
Retained deficit		(116,313	)		—
Beach Acquisition members' equity		3,721,714			—

BEACH ACQUISITION CO PARENT, LLC AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (continued)

(Unaudited)


	Successor		Predecessor
	As of		As of
(in thousands, except par value)	September 30, 2025		December 31, 2024
Skechers stockholders’ equity
Class A Common Stock, $0.001 par value; 500,000 shares authorized; 129,854 shares issued and outstanding		—		130
Class B Common Stock, $0.001 par value; 75,000 shares authorized; 19,379 shares issued and outstanding		—		19
Additional paid-in capital		—		12,170
Accumulated other comprehensive loss		—		(171,221	)
Retained earnings		—		4,436,201
Skechers stockholders' equity		—		4,277,299
Noncontrolling interests		547,805		452,866
Total stockholders' & members' equity		4,269,519		4,730,165
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, REDEEMABLE COMMON UNITS AND STOCKHOLDERS' & MEMBERS' EQUITY	$	16,817,193	$	8,455,758

See accompanying notes to unaudited condensed consolidated financial statements.

BEACH ACQUISITION CO PARENT, LLC AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings (Loss)

(Unaudited)


	Successor			Predecessor
(in thousands, except per share data)	September 12, 2025 to September 30, 2025			July 1, 2025 to September 11, 2025			Three Months Ended September 30, 2024
Sales	$	496,547		$	1,936,451		$	2,347,705
Cost of sales		272,358			904,470			1,124,659
Gross profit		224,189			1,031,981			1,223,046
Operating expenses
Selling		54,034			171,953			211,162
General and administrative		221,567			697,520			778,460
Total operating expenses		275,601			869,473			989,622
Earnings (loss) from operations		(51,412	)		162,508			233,424
Interest (expense) income		(72,246	)		(4,027	)		5,262
Other income (expense)		1,369			(3,176	)		6,629
Earnings (loss) before income taxes		(122,289	)		155,305			245,315
Income tax (benefit) expense		(8,499	)		(8,162	)		36,006
Net (loss) earnings		(113,790	)		163,467			209,309
Less: Net earnings attributable to noncontrolling interests and redeemable noncontrolling interest		2,523			3,309			16,088
Net (loss) earnings attributable to Common Unit holders / Skechers	$	(116,313	)	$	160,158		$	193,221
Net loss per unit attributable to Common Unit holders
Basic	$	(0.75	)		—			—
Diluted	$	(0.75	)		—			—
Weighted-average units used in calculating net loss per unit attributable to Common Unit holders
Basic		154,112			—			—
Diluted		154,112			—			—
Net earnings per share attributable to Skechers
Basic		—		$	1.07		$	1.27
Diluted		—		$	1.05		$	1.26
Weighted-average shares used in calculating net earnings per share attributable to Skechers
Basic		—			150,308			151,831
Diluted		—			151,814			153,662

See accompanying notes to unaudited condensed consolidated financial statements.

BEACH ACQUISITION CO PARENT, LLC AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings (Loss)

(Unaudited)


	Successor			Predecessor
(in thousands, except per share data)	September 12, 2025 to September 30, 2025			January 1, 2025 to September 11, 2025			Nine Months Ended September 30, 2024
Sales	$	496,547		$	6,788,045		$	6,756,935
Cost of sales		272,358			3,200,387			3,167,818
Gross profit		224,189			3,587,658			3,589,117
Operating expenses
Selling		54,034			608,909			603,534
General and administrative		221,567			2,378,034			2,246,830
Total operating expenses		275,601			2,986,943			2,850,364
Earnings (loss) from operations		(51,412	)		600,715			738,753
Interest (expense) income		(72,246	)		(7,860	)		14,842
Other income (expense)		1,369			70,704			(6,653	)
Earnings (loss) before income taxes		(122,289	)		663,559			746,942
Income tax (benefit) expense		(8,499	)		92,316			132,731
Net (loss) earnings		(113,790	)		571,243			614,211
Less: Net earnings attributable to noncontrolling interests and redeemable noncontrolling interest		2,523			38,151			74,066
Net (loss) earnings attributable to Common Unit holders / Skechers	$	(116,313	)	$	533,092		$	540,145
Net loss per unit attributable to Common Unit holders
Basic	$	(0.75	)		—			—
Diluted	$	(0.75	)		—			—
Weighted-average units used in calculating net loss per unit attributable to Common Unit holders
Basic		154,112			—			—
Diluted		154,112			—			—
Net earnings per share attributable to Skechers
Basic		—		$	3.56		$	3.54
Diluted		—		$	3.52		$	3.50
Weighted-average shares used in calculating net earnings per share attributable to Skechers
Basic		—			149,887			152,409
Diluted		—			151,514			154,412

See accompanying notes to unaudited condensed consolidated financial statements.

BEACH ACQUISITION CO PARENT, LLC AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)


	Successor			Predecessor
(in thousands)	September 12, 2025 to September 30, 2025			July 1, 2025 to September 11, 2025			Three Months Ended September 30, 2024
Net (loss) earnings	$	(113,790	)	$	163,467		$	209,309
Other comprehensive (loss) income, net of tax
Net changes related to fair value of derivative contract		—			—			(1,810	)
Gain (loss) on foreign currency translation adjustment		596			(8,496	)		16,516
Comprehensive (loss) income		(113,194	)		154,971			224,015
Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest		3,696			5,007			18,490
Comprehensive (loss) income attributable to Common Unit holders / Skechers	$	(116,890	)	$	149,964		$	205,525

	Successor			Predecessor
(in thousands)	September 12, 2025 to September 30, 2025			January 1, 2025 to September 11, 2025			Nine Months Ended September 30, 2024
Net (loss) earnings	$	(113,790	)	$	571,243		$	614,211
Other comprehensive (loss) income, net of tax
Net changes related to fair value of derivative contract		—			(1,367	)		(3,673	)
Gain (loss) on foreign currency translation adjustment		596			114,393			(22,680	)
Comprehensive (loss) income		(113,194	)		684,269			587,858
Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interest		3,696			62,139			62,691
Comprehensive (loss) income attributable to Common Unit holders / Skechers	$	(116,890	)	$	622,130		$	525,167

See accompanying notes to unaudited condensed consolidated financial statements.

BEACH ACQUISITION CO PARENT, LLC AND SUBSIDIARIES

Condensed Consolidated Statements of Members' Equity, Redeemable Noncontrolling Interest and Redeemable Common Units

(Unaudited)


	Successor
	Units
(in thousands)	Common		Class P		Members' capital		Accumulated other comprehensive loss			Retained deficit			Beach Acquisition members' equity			Noncontrolling interests		Total members' equity			Redeemable noncontrolling interest			Redeemable Common Units
Balance at April 28, 2025 (inception)		—		—	$	—	$	—		$	—		$	—		$	—	$	—		$	—		$	—
Issuance of units		—		—		—		—			—			—			—		—			—			—
Balance at September 12, 2025		—		—	$	—	$	—		$	—		$	—		$	—	$	—		$	—		$	—
Acquisition of Skechers		—		—		—		—			—			—			545,000		545,000			62,000			—
Common units issued related to the merger		154,112		—		3,826,642		—			—			3,826,642			—		3,826,642			—			672,833
Net (loss) earnings		—		—		—		—			(116,313	)		(116,313	)		2,754		(113,559	)		(231	)		—
Foreign currency translation adjustment		—		—		—		(577	)		—			(577	)		51		(526	)		1,122			—
Stock compensation expense		—		—		11,962		—			—			11,962			—		11,962			—			—
Balance at September 30, 2025		154,112		—	$	3,838,604	$	(577	)	$	(116,313	)	$	3,721,714		$	547,805	$	4,269,519		$	62,891		$	672,833

See accompanying notes to unaudited condensed consolidated financial statements.

BEACH ACQUISITION CO PARENT, LLC AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders' Equity and Redeemable Noncontrolling Interest

(Unaudited)


	Predecessor
	Shares						Amount
(in thousands)	Class A Common Stock			Class B Common Stock			Class A Common Stock			Class B Common Stock			Additional paid–in capital			Accumulated other comprehensive loss			Retained earnings		Skechers stockholders' equity			Noncontrolling interests			Total stockholders' equity			Redeemable noncontrolling interest
Balance at June 30, 2025		130,963			19,314		$	131		$	19		$	38,116		$	(71,989	)	$	4,809,135	$	4,775,412		$	497,723		$	5,273,135		$	102,374
Net earnings		—			—			—			—			—			—			160,158		160,158			3,812			163,970			(503	)
Foreign currency translation adjustment		—			—			—			—			—			(10,194	)		—		(10,194	)		631			(9,563	)		1,067
Stock compensation expense		—			—			—			—			18,209			—			—		18,209			—			18,209			—
Shares issued under the incentive award plan		72			—			—			—			1,579			—			—		1,579			—			1,579			—
Shares redeemed for employee tax withholdings		(14	)		—			—			—			(862	)		—			—		(862	)		—			(862	)		—
Balance at September 11, 2025		131,021			19,314		$	131		$	19		$	57,042		$	(82,183	)	$	4,969,293	$	4,944,302		$	502,166		$	5,446,468		$	102,938

Balance at June 30, 2024		132,231			20,079		$	132		$	20		$	178,148		$	(100,670	)	$	4,143,654	$	4,221,284		$	292,288		$	4,513,572		$	93,576
Net earnings		—			—			—			—			—			—			193,221		193,221			14,279			207,500			1,809
Foreign currency translation adjustment		—			—			—			—			—			12,304			—		12,304			7,618			19,922			(3,406	)
Contribution from noncontrolling interests		—			—			—			—			—			—			—		—			150,000			150,000			—
Distributions to noncontrolling interests		—			—			—			—			—			—			—		—			(850	)		(850	)		—
Net changes related to fair value of derivative contract		—			—			—			—			—			—			—		—			(1,810	)		(1,810	)		—
Stock compensation expense		—			—			—			—			21,026			—			—		21,026			—			21,026			—
Shares issued under the incentive award plan		48			—			—			—			1,611			—			—		1,611			—			1,611			—
Shares redeemed for employee tax withholdings		(7	)		—			—			—			(409	)		—			—		(409	)		—			(409	)		—
Repurchases of common stock		(1,379	)		—			(1	)		—			(90,026	)		—			—		(90,027	)		—			(90,027	)		—
Conversion of Class B Common Stock into Class A Common Stock		700			(700	)		1			(1	)		—			—			—		—			—			—			—
Balance at September 30, 2024		131,593			19,379		$	132		$	19		$	110,350		$	(88,366	)	$	4,336,875	$	4,359,010		$	461,525		$	4,820,535		$	91,979

See accompanying notes to unaudited condensed consolidated financial statements.

BEACH ACQUISITION CO PARENT, LLC AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders' Equity and Redeemable Noncontrolling Interest

(Unaudited)


	Predecessor
	Shares						Amount
(in thousands)	Class A Common Stock			Class B Common Stock			Class A Common Stock			Class B Common Stock			Additional paid–in capital			Accumulated other comprehensive loss			Retained earnings		Skechers stockholders' equity			Noncontrolling interests			Total stockholders' equity			Redeemable noncontrolling interest
Balance at December 31, 2024		129,854			19,379		$	130		$	19		$	12,170		$	(171,221	)	$	4,436,201	$	4,277,299		$	452,866		$	4,730,165		$	90,099
Net earnings		—			—			—			—			—			—			533,092		533,092			36,563			569,655			1,588
Foreign currency translation adjustment		—			—			—			—			—			89,038			—		89,038			14,104			103,142			11,251
Net changes related to fair value of derivative contract		—			—			—			—			—			—			—		—			(1,367	)		(1,367	)		—
Stock compensation expense		—			—			—			—			67,776			—			—		67,776			—			67,776			—
Proceeds from the employee stock purchase plan		143			—			—			—			7,519			—			—		7,519			—			7,519			—
Shares issued under the incentive award plan		1,544			—			2			—			1,619			—			—		1,621			—			1,621			—
Shares redeemed for employee tax withholdings		(585	)		—			(1	)		—			(32,042	)		—			—		(32,043	)		—			(32,043	)		—
Conversion of Class B Common Stock into Class A Common Stock		65			(65	)		—			—			—			—			—		—			—			—			—
Balance at September 11, 2025		131,021			19,314		$	131		$	19		$	57,042		$	(82,183	)	$	4,969,293	$	4,944,302		$	502,166		$	5,446,468		$	102,938

Balance at December 31, 2023		132,837			20,182		$	133		$	20		$	295,847		$	(73,388	)	$	3,796,730	$	4,019,342		$	290,868		$	4,310,210		$	89,832
Net earnings		—			—			—			—			—			—			540,145		540,145			65,807			605,952			8,259
Foreign currency translation adjustment		—			—			—			—			—			(14,978	)		—		(14,978	)		(1,590	)		(16,568	)		(6,112	)
Contribution from noncontrolling interests		—			—			—			—			—			—			—		—			150,000			150,000			—
Distributions to noncontrolling interests		—			—			—			—			—			—			—		—			(39,887	)		(39,887	)		—
Net changes related to fair value of derivative contract		—			—			—			—			—			—			—		—			(3,673	)		(3,673	)		—
Stock compensation expense		—			—			—			—			65,190			—			—		65,190			—			65,190			—
Proceeds from the employee stock purchase plan		137			—			—			—			6,823			—			—		6,823			—			6,823			—
Shares issued under the incentive award plan		1,861			—			2			—			1,609			—			—		1,611			—			1,611			—
Shares redeemed for employee tax withholdings		(793	)		—			(1	)		—			(49,057	)		—			—		(49,058	)		—			(49,058	)		—
Repurchases of common stock		(3,252	)		—			(3	)		—			(210,062	)		—			—		(210,065	)		—			(210,065	)		—
Conversion of Class B Common Stock into Class A Common Stock		803			(803	)		1			(1	)		—			—			—		—			—			—			—
Balance at September 30, 2024		131,593			19,379		$	132		$	19		$	110,350		$	(88,366	)	$	4,336,875	$	4,359,010		$	461,525		$	4,820,535		$	91,979

See accompanying notes to unaudited condensed consolidated financial statements.

BEACH ACQUISITION CO PARENT, LLC AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Successor			Predecessor
(in thousands)	September 12, 2025 to September 30, 2025			January 1, 2025 to September 11, 2025			Nine Months Ended September 30, 2024
Cash flows from operating activities
Net (loss) earnings	$	(113,790	)	$	571,243		$	614,211
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities
Depreciation and amortization		14,437			166,718			153,323
Amortization of deferred financing costs, original issuance discount and PIK interest		49,553			966			370
Provision for credit losses and returns		3,840			51,779			40,534
Stock compensation		11,962			67,776			65,190
Deferred income taxes		(16,729	)		(31,543	)		5,299
Net foreign currency adjustments		(3,522	)		(42,398	)		7,394
Changes in operating assets and liabilities
Receivables		24,626			(146,680	)		(372,193	)
Inventory		61,770			102,169			(178,452	)
Other assets		(5,547	)		(202,932	)		(112,241	)
Accounts payable		(52,371	)		(91,725	)		174,325
Other liabilities		40,542			140,167			56,958
Net cash provided by operating activities		14,771			585,540			454,718
Cash flows from investing activities
Capital expenditures		(29,373	)		(518,211	)		(283,435	)
Acquisition, net of cash acquired		(7,689,443	)		—			—
Proceeds from sale of property, plant and equipment		—			9,972			—
Purchases of investments		(187	)		(113,322	)		(145,371	)
Proceeds from sales and maturities of investments		—			296,717			97,697
Net cash used in investing activities		(7,719,003	)		(324,844	)		(331,109	)
Cash flows from financing activities
Proceeds from the employee stock purchase plan		—			7,519			6,823
Repayments on long-term borrowings		(14,193	)		(194,233	)

Beach Acquisition Co Parent, LLC 10-Q