Latest news with #SKX
Yahoo
2 days ago
- Business
- Yahoo
Skechers (SKX) Surpasses Q2 Earnings and Revenue Estimates
Skechers (SKX) came out with quarterly earnings of $1.13 per share, beating the Zacks Consensus Estimate of $0.83 per share. This compares to earnings of $0.91 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +36.14%. A quarter ago, it was expected that this shoe company would post earnings of $1.17 per share when it actually produced earnings of $1.34, delivering a surprise of +14.53%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Skechers, which belongs to the Zacks Shoes and Retail Apparel industry, posted revenues of $2.44 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.50%. This compares to year-ago revenues of $2.16 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Skechers shares have lost about 6.3% since the beginning of the year versus the S&P 500's gain of 7.8%. What's Next for Skechers? While Skechers has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Skechers was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.93 on $2.53 billion in revenues for the coming quarter and $3.65 on $9.67 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Shoes and Retail Apparel is currently in the bottom 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Birkenstock (BIRK), is yet to report results for the quarter ended June 2025. The results are expected to be released on August 14. This sandal maker is expected to post quarterly earnings of $0.66 per share in its upcoming report, which represents a year-over-year change of +34.7%. The consensus EPS estimate for the quarter has been revised 1.2% lower over the last 30 days to the current level. Birkenstock's revenues are expected to be $738.82 million, up 30.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report Birkenstock Holding PLC (BIRK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
23-06-2025
- Business
- Yahoo
Skechers's Q1 Earnings Call: Our Top 5 Analyst Questions
Skechers' first quarter results were met with a negative market reaction, following a modest revenue shortfall versus Wall Street expectations despite year-on-year sales growth. Management attributed this outcome to robust demand for its comfort-focused footwear in most regions, but highlighted persistent challenges in China due to macroeconomic pressures. Chief Operating Officer David Weinberg noted that, excluding China, Asia Pacific sales grew 12%, and emphasized strong direct-to-consumer performance in the U.S. and Europe. Chief Financial Officer John Vandemore added that higher promotional activity in select markets, along with elevated distribution and labor costs, weighed on operating margins. Is now the time to buy SKX? Find out in our full research report (it's free). Revenue: $2.41 billion vs analyst estimates of $2.43 billion (7.1% year-on-year growth, 0.9% miss) Operating Margin: 11%, down from 13.3% in the same quarter last year Locations: 5,318 at quarter end, up from 5,203 in the same quarter last year Constant Currency Revenue rose 8.9% year on year (13.2% in the same quarter last year) Market Capitalization: $9.35 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Jay Sole (UBS) asked about the company's ability to reduce U.S. exposure to China-sourced production amid higher tariffs. CFO John Vandemore reiterated ongoing use of sourcing flexibility and vendor partnerships but declined to give specific percentages or timelines. Laurent Vasilescu (BNP Paribas) pressed for clarity on market volatility and which regions are most affected. Vandemore highlighted the U.S. and China as areas of greatest uncertainty, while noting continued strength in Europe and Asia Pacific outside China. Peter McGoldrick (Stifel) inquired about the company's willingness to raise prices and whether this could be applied outside the U.S. Vandemore explained that price increases are a last resort and would be communicated carefully to consumers, tailored by region. Adrienne Yih-Tennant (Barclays) questioned the feasibility and speed of shifting sourcing away from China, especially for kids' footwear. Vandemore said all options are being considered, with kids' products presenting unique challenges due to manufacturing specialization. John Keeman (TD Cowen) sought details on direct-to-consumer growth targets and the pace of new store openings. Management emphasized international store expansion based on localized profitability analyses, with ongoing evaluation of the macroeconomic environment. In upcoming quarters, the StockStory team will watch (1) the pace and effectiveness of Skechers' tariff mitigation efforts and pricing strategies in the U.S., (2) whether international markets can sustain double-digit growth despite global economic uncertainty, and (3) signs of stabilization or recovery in China. Progress on direct-to-consumer expansion and the impact of new product launches will also be important indicators of execution. Skechers currently trades at $62.32, up from $50.44 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
19-06-2025
- Business
- Yahoo
Footwear Stocks Q1 In Review: Skechers (NYSE:SKX) Vs Peers
Quarterly earnings results are a good time to check in on a company's progress, especially compared to its peers in the same sector. Today we are looking at Skechers (NYSE:SKX) and the best and worst performers in the footwear industry. Before the advent of the internet, styles changed, but consumers mainly bought shoes by visiting local brick-and-mortar shoe, department, and specialty stores. Today, not only do styles change more frequently as fads travel through social media and the internet but consumers are also shifting the way they buy their goods, favoring omnichannel and e-commerce experiences. Some footwear companies have made concerted efforts to adapt while those who are slower to move may fall behind. The 8 footwear stocks we track reported a strong Q1. As a group, revenues beat analysts' consensus estimates by 1.4% while next quarter's revenue guidance was in line. In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results. Synonymous with "dad shoe", Skechers (NYSE:SKX) is a footwear company renowned for its comfortable, stylish, and affordable shoes for all ages. Skechers reported revenues of $2.41 billion, up 7.1% year on year. This print fell short of analysts' expectations by 0.9%. Overall, it was a mixed quarter for the company with a solid beat of analysts' EPS estimates but a slight miss of analysts' constant currency revenue estimates. Skechers achieved the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 23.7% since reporting and currently trades at $62.40. Is now the time to buy Skechers? Access our full analysis of the earnings results here, it's free. Originally selling Japanese Onitsuka Tiger sneakers as Blue Ribbon Sports, Nike (NYSE:NKE) is a global titan in athletic footwear, apparel, equipment, and accessories. Nike reported revenues of $11.27 billion, down 9.3% year on year, outperforming analysts' expectations by 2.3%. The business had a stunning quarter with an impressive beat of analysts' EPS estimates and a solid beat of analysts' EBITDA estimates. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 17% since reporting. It currently trades at $59.60. Is now the time to buy Nike? Access our full analysis of the earnings results here, it's free. The owner of Dr. Scholl's, Caleres (NYSE:CAL) is a footwear company offering a range of styles. Caleres reported revenues of $614.2 million, down 6.8% year on year, falling short of analysts' expectations by 1.3%. It was a disappointing quarter as it posted a significant miss of analysts' adjusted operating income and EPS estimates. Caleres delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 19.9% since the results and currently trades at $13.13. Read our full analysis of Caleres's results here. Established in 1973, Deckers (NYSE:DECK) is a footwear and apparel conglomerate with a portfolio of lifestyle and performance brands. Deckers reported revenues of $1.02 billion, up 6.5% year on year. This number beat analysts' expectations by 2.4%. It was a strong quarter as it also produced a solid beat of analysts' constant currency revenue and EPS estimates. The stock is down 20% since reporting and currently trades at $101.00. Read our full, actionable report on Deckers here, it's free. Founded in 2002, Crocs (NASDAQ:CROX) sells casual footwear and is known for its iconic clog shoe. Crocs reported revenues of $937.3 million, flat year on year. This print surpassed analysts' expectations by 3.1%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts' constant currency revenue estimates and an impressive beat of analysts' EPS estimates. The stock is flat since reporting and currently trades at $100.45. Read our full, actionable report on Crocs here, it's free. In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump's presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-05-2025
- Business
- Yahoo
Why Skechers U.S.A., Inc. (SKX) Soared on Monday
We recently published a list of Why These 10 Firms Soared on Monday. In this article, we are going to take a look at where Skechers U.S.A., Inc. (NYSE:SKX) stands against other Monday's best performers. The stock market kicked off the trading week on a negative note as investors sold off on a new round of uncertainties from President Donald Trump's tariff policies. The Nasdaq fell by 0.74 percent, while the S&P 500 dropped 0.64 percent and the Dow Jones was down by 0.24 percent. Over the weekend, Trump told reporters that the US was negotiating with many countries, 'but at the end of this, I'll set my own deals — because I set the deal, they don't set the deal.' He added that he had no intentions to talk with Chinese President Xi Jinping, dampening hopes of a potential negotiation between the two of the world's largest economies. Beyond the major indices, 10 companies stood out with strong gains amid a flurry of fresh developments. In this article, we name Monday's 10 best performers and detail the reasons behind their gains. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume. Why Skechers U.S.A., Inc. (SKX) Soared on Monday A sportsperson running with style and grace, embodying the company's performance footwear. Skechers U.S.A., Inc. (NYSE:SKX) Skechers USA soared by 24.35 percent on Monday to end at $61.39 apiece as investors gobbled up shares following news that private equity firm 3G Capital is set to acquire the company for $9.4 billion. In a statement, 3G Capital agreed to acquire shares of Skechers U.S.A., Inc. (NYSE:SKX) at a price of $63 apiece. The price represented a premium of 30 percent to the shoemaker's 15-day volume-weighted average stock price. 'With a proven track record, Skechers is entering its next chapter in partnership with the global investment firm 3G Capital. Given their remarkable history of facilitating the success of some of the most iconic global consumer businesses, we believe this partnership will support our talented team as they execute their expertise to meet the needs of our consumers and customers while enabling the company's long-term growth,' said Skechers U.S.A., Inc. (NYSE:SKX) Chairman and CEO Robert Greenberg. Greenberg will continue to lead the company even with the assumption of the new management. Overall, SKX ranks 1st on our list of Monday's best performers. While we acknowledge the potential of SKX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SKX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
Yahoo
28-04-2025
- Business
- Yahoo
Skechers U.S.A., Inc. (SKX): A Bear Case Theory
We came across a bearish thesis on Skechers U.S.A., Inc. (SKX) on wallstreetbets Subreddit Page by Traditional-Year3847. In this article, we will summarize the bears' thesis on SKX. Skechers U.S.A., Inc. (SKX)'s share was trading at $50.49 as of April 24th. SKX's trailing and forward P/E were 12.14 and 12.21 respectively according to Yahoo Finance. andersphoto / Skechers' Q1 2025 results underscore significant cracks in the company's business model, validating the bearish thesis centered on tariff vulnerability and margin compression. Despite a strong topline growth of 7.1%, the company's operating income fell by 11.3%, signaling the challenges it faces in maintaining profitability amid rising costs. This divergence between revenue growth and profit decline points to a deeper issue: Skechers is struggling to maintain its margins, a key factor in the bearish outlook for the company. The most notable confirmation of the bearish thesis comes from Skechers' decision to withdraw its full-year guidance, citing "macroeconomic uncertainty stemming from global trade policies." This move directly supports the earlier prediction that Skechers' reliance on Asian manufacturing makes the company highly vulnerable to tariff impacts, particularly the 125% tariffs that are set to escalate in the coming quarters. This tariff risk looms large, as Skechers lacks the pricing power to absorb these costs without eroding demand or margins. Skechers' significant exposure to the Chinese market exacerbates its challenges. Sales in China dropped by 15.9% year-over-year, representing the company's worst-performing region. This sharp decline further supports the bearish thesis, highlighting the intensifying competition within China and the company's waning market share. The fact that management attempted to reframe the performance by excluding China from its regional results only underscores how critical this market has become for the company's global strategy. China, once accounting for 14.2% of total sales in Q1 2024, now represents just 11.1%, confirming that the company is losing ground in one of its most important markets. The combination of lower demand and rising tariffs creates a precarious situation for Skechers, where both its sales and profit growth are under significant pressure. The margin story is particularly concerning. Operating margins fell by 230 basis points to 11.0%, and gross margins dropped by 50 basis points to 52.0%. Operating expenses increased by 12.1%, far outpacing the 7.1% revenue growth. This compression in margins occurred before the full impact of the increased tariffs hits in Q2 and beyond, further emphasizing Skechers' inability to offset rising costs through price hikes. The company's pricing power is clearly lacking, and its inability to protect its margins from cost pressures reveals a fundamental weakness in its business model. Skechers' inventory situation also presents a risk. Though inventory levels decreased by 7.6% from December 2024, they remain historically high at $1.77 billion. The risk here is that, as tariff-related costs continue to flow through the supply chain, Skechers may face margin-eroding markdowns or increased inventory buildup. This could further strain profitability and exacerbate the challenges facing the company. In light of these results, the bearish thesis remains intact, with Skechers facing substantial downside risks. While the company has seen strong revenue growth, it has struggled to convert that growth into profits. The withdrawn guidance, coupled with the continued weakness in China and deteriorating margins, strongly suggests that the company's business model is ill-equipped to withstand the tariff pressures. The company's position in China, its reliance on low-cost manufacturing, and its inability to pass through tariff-related cost increases without hurting demand are all signs of deeper structural issues that will likely continue to weigh on the stock. Given these dynamics, the stock's decline from $73 to $50 already reflects some of the challenges, but the Q1 results suggest that more downside is likely. The original bearish price target of $24.80 to $32 remains firmly in play, as the full impact of tariffs and margin pressure is yet to be fully realized. Skechers' inability to pass through cost increases and its dependence on China's market, which is showing signs of weakness, make it particularly vulnerable to further market repricing. Investors should be prepared for continued slow-motion repricing of the stock. While the company may not be facing a sudden collapse, the combination of escalating tariffs, continued margin compression, and an inability to navigate these macroeconomic headwinds suggests that the stock has further room to fall. Skechers U.S.A., Inc. (SKX) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held SKX at the end of the fourth quarter which was 42 in the previous quarter. While we acknowledge the risk and potential of SKX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SKX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
