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Factors Likely to Influence Skechers' (SKX) Q1 Earnings

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Skechers U.S.A., Inc. (SKX - Free Report) is likely to register top- and bottom-line growth when it reports first-quarter 2021 numbers on Apr 22, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $1,289 million, which indicates growth of 3.7% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for first-quarter earnings is currently pegged at 49 cents per share, which suggests a rise of 25.6% from the figure reported in the prior-year quarter. The consensus mark declined by two cents in the past 30 days. This well-known retail apparel and footwear company has a trailing four-quarter earnings surprise of 19.3%, on average.

Keys Aspects to Note

Skechers has been witnessing sturdy growth in its e-commerce platform, backed by robust omni-channel services. Markedly, the company’s efforts to integrate store and digital ecosystems have been yielding. Additionally, the company has been focusing on augmenting website features and mobile application along with improving in-store point-of-sale systems to better engage with customers. Such initiatives are likely to have continued boosting online sales during the first quarter.

Also, the company’s international business is a considerable sales growth driver, with Europe and China being the significant markets outside the United States. These upsides along with the company’s focus on boosting assortments, store remodeling projects, prudent inventory management and distribution efforts are likely to have supported top-line performance in the to-be-reported quarter.

However, adverse impacts stemming from higher selling, general & administrative expenses cannot be ruled out. Notably, the company has been incurring higher marketing, warehouse and distribution costs. Also adverse impacts stemming from the coronavirus pandemic, such as soft traffic across stores, is a concern.

Skechers U.S.A., Inc. Price, Consensus and EPS Surprise

 

Skechers U.S.A., Inc. Price, Consensus and EPS Surprise

 

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Skechers this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Skechers currently carries a Zacks Rank #3 and an Earnings ESP of -31.08%.

Stocks Poised to Beat Estimates

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.

Ralph Lauren Corporation (RL - Free Report) currently has an Earnings ESP of +31.32% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

SnapOn Incorporated (SNA - Free Report) currently has an Earnings ESP of +5.00% and a Zacks Rank #2.

Guess?, Inc. (GES - Free Report) has an Earnings ESP of +18.52% and a Zacks Rank #3, at present

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