Skechers U.S.A.: Stepping Towards Success in the Footwear Industry

Skechers U.S.A.: A Stride Towards Prosperity in the Footwear Industry

Date: August 14, 2023

Skechers U.S.A. Inc., a renowned global footwear company, is taking significant strides towards success in the competitive footwear market. The company’s commitment to innovation and customer-oriented approach has positioned it as a leading player in the industry. Several equities analysts have recently issued favorable reports on Skechers U.S.A., affirming its potential for growth and profitability.

Raymond James, a prominent equity analyst, raised its target price on Skechers U.S.A. from $58.00 to $59.00 while providing an “outperform” rating for the company. This endorsement reflects Raymond James’ belief in the company’s ability to outperform its competitors and excel in delivering quality footwear products to consumers.

In line with this positive sentiment, UBS Group also lifted their price objective on shares of Skechers U.S.A., increasing it from $63.00 to $68.00. Coupled with a “buy” rating, this analysis further attests to the confidence investors have in the company’s future prospects.

Another respected research firm, Wedbush, reaffirmed an “outperform” rating and set a price objective of $59.00 for Skechers U.S.A.. This support from Wedbush underscores their faith in the company’s management team and overall business strategy.

Deutsche Bank Aktiengesellschaft joined the chorus by raising their price objective on shares of Skechers U.S.A. from $57.00 to $62.00 while giving it a “buy” rating. It highlights the bank’s positive outlook on the company’s growth potential and its attractiveness as an investment opportunity.

Morgan Stanley contributed to this bullish sentiment by increasing their price target on Skechers U.S.A.’s shares from $46.00 to $48.00 in a research note released earlier in the year. This positive evaluation by Morgan Stanley validates the company’s continued efforts to capture market share and maintain a strong foothold in the footwear industry.

Based on data from Bloomberg, Skechers U.S.A. holds a consensus rating of “Moderate Buy” with an average price target of $58.83, further reinforcing its desirability within the investment community.

Skechers U.S.A., Inc., operates across two key segments – Wholesale and Direct-to-Consumer – enabling it to reach customers globally. The company offers a wide range of footwear styles for men, women, and children under various brands, including Skechers USA, Skechers Sport, Modern Comfort, Mark Nason, BOBS, S-Lights, Twinkle Toes, and many more.

In terms of financials and performance metrics, Skechers U.S.A.’s shares (traded as SKX) opened at $53.32 on August 14th. The stock has demonstrated its resilience with a 1-year low of $31.28 and a 1-year high of $56.53.

The company’s impressive market capitalization stands at $8.25 billion, reflecting investor confidence in its long-term prospects for growth and profitability. With a P/E ratio of 17.60 and a PEG ratio of 0.56 – indicating favorable valuations relative to its expected earnings growth – Skechers U.S.A. continues to attract investors seeking value opportunities.

Skechers U.S.A.’s proven ability to adapt to changing market dynamics is further supported by its diversification into technical footwear under the well-regarded Skechers GOrun and GOwalk brands, among others.

While maintaining sound financial health with a debt-to-equity ratio of 0.06 and robust liquidity ratios such as current ratio and quick ratio at 2.48 and 1.48 respectively, Skechers U.S.A. has positioned itself favorably in the industry.

As consumer preferences continue to evolve, Skechers U.S.A.’s focus on customer-centric designs and innovative products is likely to drive its growth trajectory even further. By capitalizing on emerging trends and maintaining its commitment to quality, the company has solidified its position as a leader in the competitive footwear market.

In conclusion, Skechers U.S.A. holds immense promise for investors seeking exposure to the footwear industry. Backed by positive assertions from reputable equities analysts, the company’s innovative approach, diverse product portfolio, and strong financial performance make it an attractive investment option. With a consistent track record of delivering value to customers worldwide, Skechers U.S.A. is poised for continued success well into the future.

Disclaimer: The information contained in this article is based on publicly available data as of August 14th, 2023. Investors are advised to conduct thorough research and consult with financial advisors before making any investment decisions.

Skechers U.S.A., Inc. Faces Lowered Q3 2023 Earnings Estimates, but Receives Support from Institutional Investors

August 14, 2023 – Skechers U.S.A., Inc. (NYSE: SKX), a renowned footwear company that designs and distributes footwear for men, women, and children worldwide, recently had its Q3 2023 earnings per share estimates lowered by equities researchers at Zacks Research. In a note issued to investors on Thursday, August 10th, Zacks Research analyst S. Singh revised their forecast for Skechers U.S.A.’s earnings per share from $0.87 to $0.75 for the quarter.

The consensus estimate for Skechers U.S.A.’s current full-year earnings stands at $3.38 per share. Furthermore, Zacks Research also provided estimates for the company’s future earnings, including Q4 2023 earnings projected at $0.58 EPS, FY2023 earnings at $3.33 EPS, Q1 2024 earnings at $1.12 EPS, Q3 2024 earnings at $0.95 EPS, Q4 2024 earnings at $0.72 EPS, Q1 2025 earnings at $1.30 EPS and FY2025 earnings at $4.44 EPS.

Skechers U.S.A., Inc operates through two segments: Wholesale and Direct-to-Consumer. The company offers a wide range of footwear options under various brands such as Skechers USA, Skechers Sport, Skechers Active, Modern Comfort, Skechers Street, Foamies, Mark Nason, BOBS and more.

In the previous quarterly report released on Thursday July 27th , the company surpassed expectations with an earning per share of $0.98 compared to the consensus estimate of $0.52 – exceeding by a notable margin of $0.46 in favor of Skechers U.S.A.. Revenue for the quarter was reported as being approximately $2.01 billion instead of the anticipated value of about $1.92 billion, representing a 7.7% increase in comparison to the same quarter of the previous year. Moreover, Skechers U.S.A. exhibited a return on equity of 11.97% and a net margin of 6.11%.

Various hedge funds and institutional investors have demonstrated their faith in the potential of Skechers U.S.A., Inc by making notable changes to their positions in SKX lately. SageView Advisory Group LLC, for instance, raised its stake in shares of the textile maker by 4% during the second quarter, thereby claiming ownership of 9,152 shares worth approximately $482,000. Similarly, Ontario Teachers Pension Plan Board acquired a new position in Skechers U.S.A. during the second quarter at an estimated worth of around $1,094,000.

Credit Suisse AG also expressed confidence in Skechers U.S.A.’s future prospects by witnessing a significant growth rate of 70.2% and invested further in the company’s stock during the same period mentioned above. The Swiss multinational investment bank now owns approximately 478,764 shares of Skechers U.S.A.’s stock with an estimated value of $25,212,000.

Additionally, Qsemble Capital Management LP decided to jump on board with their investment strategy by building a new position in Skechers U.S.A., valued at around $321,000 during the second quarter.

Lastly, BlackRock Inc., one of the world’s most prominent investment management corporations and ETF providers that oversee trillions of dollars’ worth of assets under management (AUM), grew its stake in Skechers U.S.A. by an impressive 5.2%. Their ownership now encompasses about 12 million shares valued at $635 million after acquiring an additional 592,347 shares this past quarter.

Consequently, it can be deduced that institutional investors and hedge funds hold significant confidence in Skechers U.S.A.’s ability to deliver consistent returns and long-term growth. With the recent revisions in earnings per share estimates and strategic investments made in the company, it will be intriguing to observe how Skechers U.S.A. progresses throughout the remainder of 2023 and beyond.