Shares of Skechers USA, Inc. (SKX - Free Report) recorded a new 52-week high of $23.14 yesterday, before closing at $22.81, and rising approximately 25% year to date. Based on the current price, Skechers is 9.5% below the Zacks Consensus average analyst price target of $25.20.
Moreover, it currently trades at a forward P/E of 24.1x, a 32.4% premium to the peer group average of 18.25x.
Skechers posted first-quarter 2013 earnings of 13 cents a share, marking a significant improvement from the loss of 7 cents delivered in the prior-year quarter on the back of growth witnessed across domestic wholesale, international, company-operated retail businesses and e-Commerce operations.
Moreover, this Zacks Rank #3 (Hold) stock, which competes with Deckers Outdoor Corporation (DECK - Free Report) , registered a 28.6% rise in total sales to $451.6.
With more emphasis on the new line of products, cost containment efforts, inventory management and global distribution platform, the company anticipates sustaining its growth momentum in 2013.
Skechers hinted at significant growth in the third quarter in comparison to the second quarter due to early Easter on Mar 31 this year, and back-to-school deliveries going into the third quarter of 2013.
Management remains committed to opening additional Skechers stores and increasing distribution channels with the development of international distribution agreements to boost its sales and profitability. Moreover, international business remains a significant growth driver for the company’s sales. Skechers, through its distribution networks, subsidiaries and joint ventures, is poised to enhance its global reach in the footwear market.
Other Stocks to Consider
There are certain other stocks in the consumer discretionary sector that warrant a look. These include Iconix Brand Group, Inc. (ICON - Free Report) and Big 5 Sporting Goods Corp. (BGFV - Free Report) , both carrying a Zacks Rank #1 (Strong Buy).