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Skechers (SKX) earnings preview: expect double-digit sales growth

11:09 am ET, 17 Jul 2018

Skechers U.S.A., Inc. (SKX)  is expected to report earnings on July 19 after market close. The report will be for the fiscal quarter ending June 2018.  Shares are trading at 31.29, up 1.07%.

What are SKX earnings expectations?  What news will the market be watching out for?  

Some investors believe Skechers is undervalued because it deploys a different distribution model relative to its competitors such as Nike, which is primarily focused on e-commerce.  The company realized there is a more effective and profitable model to sell its shoes to consumers--by deploying a traditional direct-to-consumer brick and mortar model.

The company has just over 650 stores, which is up from 584 stores at the end of last year. In addition, Skechers is planning on opening an additional 60 to 75 units by the end of the year. With 133 to 148 new locations this year, Skechers top line should benefit from the sales generated by new stores.

Looking at Nike and Under Armour, each company is trying to drive direct sales in different ways. Nike is investing in its eCommerce business. Nike Direct reported total sales in the last twelve months, of over $10 billion, and grew at an annual basis of 12%. Under Armour is investing heavily in growing its direct to consumer business as well. The company increased its Brand House locations by more than 40% since last year, and its Factory House locations by 15%.

The key difference between the three companies is while Nike and Under Armour get about 30% of their sales from direct to consumer, Skechers gets less than 23%. The reason direct to consumer has become so popular is the business cuts out the middleman, thus increasing the company’s gross margin.

In the upcoming earnings, investors will be focused on the company's growth and profitability.  Skechers' adjusted revenue growth was 21% historically, and for the upcoming quarter sales is expected to grow 10%.   

Skechers gross margin already leads its peers at 46.6%, whereas Nike comes in at 44.6%, and Under Armour sits at 44.2%. However, Skechers' Retail (or direct business) carries a gross margin of 57% as of last quarter.

Skechers has a mixed history of beating analysts’ earnings estimates.  In the past four quarters, the company: 

  • Missed analyst EPS estimates by 6 cents ($.38 actuals vs. $.44 forecast) in FQ2’17;
  • Beat analyst EPS estimates by 16 cents ($.59 actuals vs. $.43 forecast) in FQ3’17;
  • Beat analyst EPS estimates by 8 cents ($.21 actuals vs. $.13 forecast) in FQ4’17;
  • Missed analyst EPS estimates by 6 cents ($.68 actuals vs. $.74 forecast) in FQ1’18.

For FQ2’18, EPS is expected to grow by 5% year-over-year to $.40, while revenue is expected to grow 10% year-over-year to $1.13 billion. 

 

Over the last month, Skechers U.S.A., Inc. (SKX) returned +8.57%. 

Skechers U.S.A., Inc. (SKX) average analyst price target ($42.33) is 35.28% above its current price ($31.29).

For the latest price and information on Skechers U.S.A., Inc., please visit Finstead and search for "SKX price" or "SKX news".

Nike (NKE) earnings: will inventory levels send the stock price down?

1:25 pm ET, 25 Jun 2018

Nike, Inc. (NKE) is reporting earnings on June 28 after market close. The report will be for the fiscal quarter ending May 2018.  The shares are now trading at $72.63, down -1.08%.  What are the NKE earnings expectations?  What news will the market be watching out for?

One of the things that investors are watching out for is Nike's inventory level.  Nike seems to be doing fine on this point; however, what concerns some investors is the fact that the inventory is rising faster than the overall sales, particularly in the footwear business.  Some other companies,  Sketchers (SKX), have inventory levels that are increasing much more slowly than the sales.  

Also, Nike's share of inventory as a percentage of overall revenue is growing.  

Nike has the history of beating analysts’ earnings estimates.  In the past four quarters, the company: 

  • Beat analyst EPS estimates by 11 cents ($.60 actuals vs. $.49 forecast) in FQ4’17;
  • Beat analyst EPS estimates by 9 cents ($.57 actuals vs. $.48 forecast) in FQ1’18;
  • Beat analyst EPS estimates by 7 cents ($.46 actuals vs. $.39 forecast) in FQ2’18;
  • Beat analyst EPS estimates by 16 cents ($.68 actuals vs. $.52 forecast) in FQ3’18.

For FQ4’18, EPS is expected to grow by 7% year-over-year to $.64, while revenue is expected to grow 8% year-over-year to $9.39 billion.  

Nike, Inc. (NKE) forward P/E ratio is 27.77, and it’s high compared to its industry peers’ P/E ratios.

Nike, Inc. (NKE) average analyst price target ($71.73) is -1.24% below its current price ($72.63).

For the latest price and information on Nike, Inc., please visit Finstead and search for "NKE price" or "NKE news".

Skechers (SKX): will the stock bounce back?

11:14 pm ET, 22 Apr 2018

Skechers USA  (NYSE: SKX ) witnessed a drop of 27% in today’s trading.  This Manhattan Beach, CA-based company that designs, markets and distributes footwear, declined precipitously post its earnings.   For the latest news on Skechers, visit Finstead and type "SKX news". 

What do you need to know about Skechers?  Is it a good investment opportunity? 

The company increased its sales by 16.5% to $12.5 Billion compared to the previous year. This can be attributed to its sound performance for wholesale in international markets, but also domestically in the US.

Improved revenue led to an increase in the company's net earnings to $117.7 Million, which is 25.2% more vs. a year ago.

The company has its e-commerce sites operating in Chile, Germany, the UK, Spain, and Canada.  It also owns 657 retail outlets. 

Skechers has plans to open an additional 450 third-party owned Skechers stores.

What is the stock price forecast? Per Finstead Research, Skechers USA stock has an average price target of almost $48.


The company has a fairly high valuation compared to its peers. Its P/E ratio lags those of Vera Bradley (VRA), Blue Buffalo Pet Products (BUFF), and Crocs (CROX) only.

A high short share of float compared to the industry and sector averages indicates potentially high volatility in the upcoming trading days.

Skechers U.S.A., Inc. (SKX) Stock Guide

Updated at: 12:12 am ET, 14 Nov 2020

Before we start: if you're looking for SKX stock price, you can quickly find it out by visiting Finny and typing "SKX quote". If you're looking for a quick scoop on SKX stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "SKX". You'll get all this info in one place. Or you can just type "SKX news" to get the latest stock news.

Looking to buy or sell Skechers U.S.A., Inc. (SKX)? Interested in getting the full scoop on SKX, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this SKX stock guide, we'll address key questions about SKX, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are SKX earnings?
2. When is SKX earnings date?
3. What is SKX stock forecast (i.e., prediction)?
4. SKX buy or sell? What is SKX Finny Score?
5. What are the reasons to buy SKX? Why should I buy SKX stock?
6. What are the reasons to sell SKX? Why should I sell SKX stock?
7. What are SKX key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are SKX earnings?

SKX trailing 12-month earnings per share (EPS) is $0.68.

2. When is SKX earnings date?

SKX earnings date is February 04, 2021.

Analyst Predictions

3. What is SKX stock forecast (i.e., prediction)?

Based on SKX analyst price targets, SKX stock forecast is $40.46 (for a year from now). That means the average analyst price target for SKX stock is $40.46. The prediction is based on 12 analyst estimates.

The low price target for SKX is $35.00, while the high price target is $52.00.

SKX analyst rating is Buy.

Analysis

4. SKX buy or sell? What is SKX Finny Score?

#{finnyScore:50}Our quantitative analysis shows 5 reasons to buy and 5 reasons to sell SKX, resulting in Finny Score of 50.

5. What are the reasons to buy SKX? Why should I buy SKX stock?

Here are the reasons to buy SKX stock:

6. What are the reasons to sell SKX? Why should I sell SKX stock?

Let's look at the reasons to sell SKX stock (i.e., the bear case):

  • SKX quarterly revenue growth was -4.10%, lower than the industry and sector average revenue growth (1.26% and 0.35%, respectively). See SKX revenue growth chart.
  • SKX profitability is declining. The YoY profit margin change was -2.52 percentage points. See SKX profitability chart.
  • SKX PEG ratio (P/E adjusted for growth) is 15.04, which is high compared to its industry peers’ PEG ratios. See SKX PEG chart.
  • SKX short share of float is 5.99%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See SKX short share of float chart.
  • SKX short interest (days to cover the shorts) ratio is 3.84. The stock garners more short interest than the average industry, sector or S&P 500 stock. See SKX short interest ratio chart.

Key Stats

7. What are SKX key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for SKX:

Metrics SKX
Price $34.19
Average Price Target / Upside $40.46 / 18.34%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Footwear & Accessories
Sector Consumer Cyclical
Number of Employees 12,600
Market Cap $5.01B
Forward P/E Ratio 14.43
Price/Book Ratio 1.08
Revenue (TTM) $4.62B
YoY Quarterly Revenue Growth -4.10%
Profit Margin 2.27%

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