The Short Answer
Skechers stock (SKX) was generally considered halal as a business by standard Sharia screening criteria — the footwear and apparel activity is permissible. Skechers completed an acquisition in 2025 and is no longer a current publicly traded issuer, so the latest public filing supports only a historical, incomplete screen rather than a current investment conclusion.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2025-06-30; calculated 2026-07-15.
584.346 / 9,278.116
1,562.409 / 9,278.116
2,631.607 / 9,278.116
- Financial
- Incomplete
- Overall
- Incomplete
Historical debt/assets is 6.30%, liquidity/assets is 16.84% and receivables-plus-cash/assets is 28.36%; gross interest income and current issuer status are incomplete.
- Financial
- Pass
- Overall
- Incomplete
Historical known asset-based ratios are below the examined MSCI limits, but the filing predates the completed acquisition and current activity/income remain incomplete.
- Financial
- Pass
- Overall
- Incomplete
Historical known financial ratios are below the examined Malaysia limits; this is not an official classification and does not establish current post-acquisition status.
- Financial
- Not calculated
- Overall
- Not calculated
SKX is no longer a current publicly traded issuer and no licensed historical market-cap series is stored.
Business-activity disclosure
Skechers designs and sells footwear, apparel and accessories. That consumer-products activity is generally permissible, but SKX completed a 2025 acquisition and is no longer a current publicly traded issuer, so a current investability or market-cap conclusion cannot be made from this historical filing.
Limitation: The latest public filing predates the completed acquisition; no current public market-cap series or post-acquisition issuer financial statements are stored.
Purification
Gross interest income is not separately disclosed in the latest public filing, and no current post-acquisition public issuer data is available; no purification percentage is inferred.
Inputs, assumptions and primary sources
- Amounts are USD millions from Skechers' June 30, 2025 Form 10-Q, the latest public-company filing located after the 2025 acquisition.
- Interest-bearing debt is current long-term borrowings of $316.748 million, short-term borrowings of $179.633 million and long-term borrowings of $87.965 million; operating lease liabilities are excluded.
- Cash and cash equivalents are $1,377.152 million; short-term investments are $106.254 million and long-term securities of $79.003 million are included, while $78.449 million of company-owned life insurance is excluded from interest-bearing securities.
- Trade accounts receivable of $1,149.298 million and other receivables of $105.157 million are included; sales for the quarter were $2,440.024 million.
- The filing reports interest paid but does not separately disclose gross interest income, so the income numerator is unavailable.
- Skechers completed its acquisition by Beach Acquisition Co Parent in 2025 and is no longer a current publicly traded issuer; the historical business activity is footwear and apparel and remains generally permissible.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
Designing and selling footwear and apparel is a permissible activity. The latest public filing shows modest historical debt and a healthy cash and securities position, but gross interest income is unavailable and the company's post-acquisition private status means current ratios and investability cannot be verified here.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
Skechers's Business Activity
Skechers is a global footwear and apparel brand. Its business includes:
- Footwear: Lifestyle and performance shoes for men, women, and children
- Apparel and accessories: Branded clothing and related products
- Distribution: Wholesale, direct-to-consumer, and international channels
Designing and selling footwear and apparel is permissible at the activity level — it is an ordinary consumer-products business.
Concerns to Be Aware Of
1. Interest Income on Cash
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 returns.
2. Debt Ratio
The latest public filing reports historical interest-bearing borrowings of $584.346 million against $9,278.116 million of assets. A current market-cap denominator is unavailable because SKX is no longer a current publicly traded issuer.
3. Receivables Ratio
Because Skechers sells through a large wholesale channel, the receivables-to-assets ratio should be checked against the preferred board's threshold (49–70%).
Historical Filing-Based Ratios (June 30, 2025)
Based on Skechers's latest public-company Form 10-Q, before the completed acquisition:
- Interest-bearing debt / assets: 6.30% — below the examined 33.33% limit ✅
- Cash + securities / assets: 16.84% — below the examined 33.33% limit ✅
- Receivables + cash / assets: 28.36% — below the examined 50% limit ✅
- Gross interest income / revenue: Unavailable in the latest public filing ⚠️
- Haram Revenue: Negligible (footwear and apparel) ✅
- Business Activity: Permissible consumer products ✅
Methodology Interpretation
The historical filing-based rows are transparent calculations, not claims of current index membership or current public investability:
- FTSE Yasaar asset ratios — historical known ratios pass; overall result is incomplete because income and current issuer status are unavailable ⚠️
- MSCI total-assets series — historical known ratios pass; current status remains incomplete ⚠️
- Malaysia SAC asset ratios — historical known ratios pass; this is not an official classification ⚠️
Bottom Line
Skechers (SKX) had a generally halal qualitative business, but its 2025 acquisition means SKX is no longer a current publicly traded issuer. The June 30, 2025 filing-based ratios pass the examined asset limits, while gross interest income and current post-acquisition data are incomplete. This historical screen should not be treated as a current buy or official index classification.
For Muslim investors seeking footwear and apparel exposure, Skechers sits alongside other names worth screening like Nike (NKE), Under Armour (UAA), and Columbia Sportswear (COLM).
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