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Here's How Skechers (SKX) is Placed Ahead of Q3 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 third-quarter 2021 earnings on Oct 28, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $1,636 million, which indicates growth of 25.8% from the prior-year reported figure.
The Zacks Consensus Estimate for third-quarter earnings per share currently stands at 75 cents, which suggests a sharp improvement from earnings of 53 cents reported in the year-ago period. However, we note that the consensus mark has fallen by a couple of cents over the past 30 days.
This designer, developer, marketer and distributor of lifestyle and performance footwear has a trailing four-quarter earnings surprise of 34.5%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a significant margin of 69.2%.
Key Factors to Note
Skechers’ greater emphasis on new line of products, store remodeling projects and prudent inventory management along with momentum in direct-to-consumer business are likely to have contributed to the third-quarter performance. On its last earnings call, management guided sales between $1.60 billion and $1.65 billion and earnings in the band of 70 cents to 75 cents a share for the quarter under review.
Speaking of e-commerce, Skechers has been directing resources to enhance digital capabilities, which include augmenting website features and mobile application. Investments made toward integrating store and digital ecosystems to develop a seamless omni-channel experience have been yielding results. Initiatives such as “Buy Online, Pick-Up in Store” and “Buy Online, Pickup at Curbside” are worth mentioning.
Skechers’ international business remains a significant sales growth driver, with Europe and China being the major markets outside the United States. The company continues to enhance its global reach in the footwear market through distribution networks, subsidiaries and joint ventures. The company is making strategic investments to improve infrastructure worldwide, primarily e-commerce platforms and distribution centers.
While aforementioned factors raise optimism, we cannot ignore the ongoing supply chain issue. Again, operating limitations in certain geographies due to the ongoing pandemic may have hurt sales to an extent. Any increase in labor costs as well as warehouse and distribution expenses might get reflected in the to-be-reported quarter’s margins.
Skechers U.S.A., Inc. Price, Consensus and EPS Surprise
Our proven model does not conclusively predict a beat for Skechers this earnings season. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Skechers has an Earnings ESP of -2.91% and a Zacks Rank #4 (Sell).
Stocks With Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Steven Madden (SHOO - Free Report) has an Earnings ESP of +1.30% and a Zacks Rank #2.
Hanesbrands (HBI - Free Report) has an Earnings ESP of +1.06% and a Zacks Rank #2.
Gildan Activewear (GIL - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #3.
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Here's How Skechers (SKX) is Placed Ahead of Q3 Earnings
Skechers U.S.A., Inc. (SKX - Free Report) is likely to register top and bottom-line growth when it reports third-quarter 2021 earnings on Oct 28, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $1,636 million, which indicates growth of 25.8% from the prior-year reported figure.
The Zacks Consensus Estimate for third-quarter earnings per share currently stands at 75 cents, which suggests a sharp improvement from earnings of 53 cents reported in the year-ago period. However, we note that the consensus mark has fallen by a couple of cents over the past 30 days.
This designer, developer, marketer and distributor of lifestyle and performance footwear has a trailing four-quarter earnings surprise of 34.5%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a significant margin of 69.2%.
Key Factors to Note
Skechers’ greater emphasis on new line of products, store remodeling projects and prudent inventory management along with momentum in direct-to-consumer business are likely to have contributed to the third-quarter performance. On its last earnings call, management guided sales between $1.60 billion and $1.65 billion and earnings in the band of 70 cents to 75 cents a share for the quarter under review.
Speaking of e-commerce, Skechers has been directing resources to enhance digital capabilities, which include augmenting website features and mobile application. Investments made toward integrating store and digital ecosystems to develop a seamless omni-channel experience have been yielding results. Initiatives such as “Buy Online, Pick-Up in Store” and “Buy Online, Pickup at Curbside” are worth mentioning.
Skechers’ international business remains a significant sales growth driver, with Europe and China being the major markets outside the United States. The company continues to enhance its global reach in the footwear market through distribution networks, subsidiaries and joint ventures. The company is making strategic investments to improve infrastructure worldwide, primarily e-commerce platforms and distribution centers.
While aforementioned factors raise optimism, we cannot ignore the ongoing supply chain issue. Again, operating limitations in certain geographies due to the ongoing pandemic may have hurt sales to an extent. Any increase in labor costs as well as warehouse and distribution expenses might get reflected in the to-be-reported quarter’s margins.
Skechers U.S.A., Inc. Price, Consensus and EPS Surprise
Skechers U.S.A., Inc. price-consensus-eps-surprise-chart | Skechers U.S.A., Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict a beat for Skechers this earnings season. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Skechers has an Earnings ESP of -2.91% and a Zacks Rank #4 (Sell).
Stocks With Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Steven Madden (SHOO - Free Report) has an Earnings ESP of +1.30% and a Zacks Rank #2.
Hanesbrands (HBI - Free Report) has an Earnings ESP of +1.06% and a Zacks Rank #2.
Gildan Activewear (GIL - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #3.