We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Skechers (SKX - Free Report) is a Zacks Rank #5 (Strong Sell) that designs, develops, markets, and distributes footwear for men, women, and children in the United States and overseas. The company offers casual, casual athletic, sport athletic, trail, sandals, boots, and retro fashion footwear for men and women.
Skechers brands include Skechers USA, Skechers Sport, Skechers Active, Modern Comfort, Skechers Street, Twinkle Toes, Z-Strap, Skechers Stretch Fit, Skechers GOrun and many more.
The stock has had a pretty good year, moving up over 50% in the first seven months of the year. However, the stock sold off over the last few months and the company just reported an earnings miss.
Additionally, estimates are falling for next year. Investors should be cautious as the stock struggles to get back to all-time highs.
More about SKX
Skechers operated almost 4,000 company-and third party owned stores at the close of last year. The company sells its products through department and specialty stores, athletic and independent retailers, boutiques, and online retailers; and through its e-commerce sites, concept stores, and factory and warehouse outlet stores.
Skechers was founded in 1992, is headquartered in Manhattan Beach, CA. The company is valued just over $7 billion and has a Forward PE of 19. SKX has Zacks Style Scores of “C” in both Momentum and Value, but an “F” in Growth.
Earnings History
The company has a decent track record of beating earnings more than not. Since the beginning of 2020, Skechers has reported six beats out of the last eight quarters. Unfortunately, this last quarter the company reported its biggest miss on EPS since 2018.
The company reported earnings back in October seeing a 12% miss on the bottom line. Revenues also came in below expectations and the company cut its FY21 guidance to $2.45-2.50 v the $2.58 expected. Their revenue outlook was also lowered.
There were some positives to the report. Direct to customer sales were up 44% year over year and margins came in higher y/y.
Management commented that supply chain constraints will remain a challenge. They are seeing progress in key global ports, but it remains a headwind at the moment.
Estimates have fallen along with the cut in guidance. Over the last month, we have seen a drop in the current year’s estimates to $2.48 from $2.62, or 5%. For next year, we see a 3% drop.
Argus recently dropped its rating to Hold from Buy based on these earnings. The firm cites supply-chain challenges and lowered their 2021 EPS forecast.
The Technicals
The stock is holding steady for now and is trading over its 50 and 200-day moving averages. However, the 50-day is still below that 200-day, which is a bearish sign. While the stock has rallied 20% off its recent lows, sellers are stepping in just under the $50 level. A break below $45 would mean the bears are in control and might look to break those October lows around $40.
In Summary
Investors should be cautious of Skechers as the supply chain issues are hurting earnings. Above the $50 level, the bulls could be in the clear. However, a move under the $45 level could bring more selling.
Investors looking to get into shoes might want to look at Steven Madden (SHOO - Free Report) . This stock just popped on a 5% EPS beat and is trading at all time highs. SHOO is a Zacks Rank #2 (Buy).
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Bear of the Day: Skechers (SKX)
Skechers (SKX - Free Report) is a Zacks Rank #5 (Strong Sell) that designs, develops, markets, and distributes footwear for men, women, and children in the United States and overseas. The company offers casual, casual athletic, sport athletic, trail, sandals, boots, and retro fashion footwear for men and women.
Skechers brands include Skechers USA, Skechers Sport, Skechers Active, Modern Comfort, Skechers Street, Twinkle Toes, Z-Strap, Skechers Stretch Fit, Skechers GOrun and many more.
The stock has had a pretty good year, moving up over 50% in the first seven months of the year. However, the stock sold off over the last few months and the company just reported an earnings miss.
Additionally, estimates are falling for next year. Investors should be cautious as the stock struggles to get back to all-time highs.
More about SKX
Skechers operated almost 4,000 company-and third party owned stores at the close of last year. The company sells its products through department and specialty stores, athletic and independent retailers, boutiques, and online retailers; and through its e-commerce sites, concept stores, and factory and warehouse outlet stores.
Skechers was founded in 1992, is headquartered in Manhattan Beach, CA. The company is valued just over $7 billion and has a Forward PE of 19. SKX has Zacks Style Scores of “C” in both Momentum and Value, but an “F” in Growth.
Earnings History
The company has a decent track record of beating earnings more than not. Since the beginning of 2020, Skechers has reported six beats out of the last eight quarters. Unfortunately, this last quarter the company reported its biggest miss on EPS since 2018.
Skechers U.S.A., Inc. Price and EPS Surprise
Skechers U.S.A., Inc. price-eps-surprise | Skechers U.S.A., Inc. Quote
Q4 Earnings and Estimates
The company reported earnings back in October seeing a 12% miss on the bottom line. Revenues also came in below expectations and the company cut its FY21 guidance to $2.45-2.50 v the $2.58 expected. Their revenue outlook was also lowered.
There were some positives to the report. Direct to customer sales were up 44% year over year and margins came in higher y/y.
Management commented that supply chain constraints will remain a challenge. They are seeing progress in key global ports, but it remains a headwind at the moment.
Estimates have fallen along with the cut in guidance. Over the last month, we have seen a drop in the current year’s estimates to $2.48 from $2.62, or 5%. For next year, we see a 3% drop.
Argus recently dropped its rating to Hold from Buy based on these earnings. The firm cites supply-chain challenges and lowered their 2021 EPS forecast.
The Technicals
The stock is holding steady for now and is trading over its 50 and 200-day moving averages. However, the 50-day is still below that 200-day, which is a bearish sign. While the stock has rallied 20% off its recent lows, sellers are stepping in just under the $50 level. A break below $45 would mean the bears are in control and might look to break those October lows around $40.
In Summary
Investors should be cautious of Skechers as the supply chain issues are hurting earnings. Above the $50 level, the bulls could be in the clear. However, a move under the $45 level could bring more selling.
Investors looking to get into shoes might want to look at Steven Madden (SHOO - Free Report) . This stock just popped on a 5% EPS beat and is trading at all time highs. SHOO is a Zacks Rank #2 (Buy).