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Here's How Skechers (SKX) is Placed Ahead of Q2 Earnings
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Skechers U.S.A., Inc. (SKX - Free Report) is likely to register an increase in the top line when it reports second-quarter 2022 results on Jul 26, after the market closes. The Zacks Consensus Estimate for revenues is pegged at $1,783 million, indicating growth of 7.6% from the prior-year reported figure.
The bottom line of this designer, developer, marketer and distributor of lifestyle and performance footwear is expected to decline year over year. The Zacks Consensus Estimate for earnings per share for the quarter under discussion has been stable at 55 cents over the past 30 days and suggests a decline of 37.5% from the year-ago period.
Skechers has a trailing four-quarter earnings surprise of 23.6%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 6.9%.
Key Factors to Note
Skechers’ greater emphasis on a new line of products, prudent inventory management and momentum in direct-to-consumer business is likely to have contributed to its second-quarter performance. Management has been directing resources to enhance digital capabilities, including augmenting website features and mobile applications, for a while. Efforts and innovations related to comfort technology footwear have been yielding results as well.
Skechers’ international business remains a significant sales driver. Management continues to expand the company’s global reach in the footwear market through distribution networks, subsidiaries and joint ventures. Strong wholesale and direct-to-consumer businesses have been aiding the overall performance for a while.
All the aforesaid factors are most likely to have benefited Skechers’ performance in the quarter under review. On its last earnings call, management had projected second-quarter sales between $1.75 billion and $1.8 billion.
In spite of the aforementioned tailwinds, we cannot ignore the impacts of recent pandemic-related shutdowns in China, geopolitical tensions, inflationary pressures and ongoing supply chain challenges on the company’s quarterly results. Management had cautioned about gross margin contraction in the second quarter owing to higher freight costs. This might get reflected in the bottom line as well. Skechers’ second-quarter earnings projection of 50-55 cents a share suggests a sharp decline from earnings of 88 cents reported in the year-ago period.
Skechers U.S.A., Inc. Price, Consensus and EPS Surprise
Our proven model predicts 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 chances 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 +1.82% and a Zacks Rank #3.
3 More Stocks With Favorable Combination
Here are three other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat:
Caleres (CAL - Free Report) currently has an Earnings ESP of +0.25% and a Zacks Rank #1. The company is likely to register bottom-line improvement when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.32 suggests an improvement from $1.19 reported in the year-ago quarter.
Caleres' top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $736.1 million, which indicates an improvement of 9% from the figure reported in the prior-year quarter. CAL has a trailing four-quarter earnings surprise of 62.9%, on average.
Steven Madden (SHOO - Free Report) currently has an Earnings ESP of +3.74% and a Zacks Rank #3. The company is likely to register bottom-line improvement when it reports second-quarter 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 59 cents suggests an improvement from 48 cents reported in the year-ago quarter.
Steven Madden's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues stands at $493.4 million, which indicates an improvement of 24% from the figure reported in the prior-year quarter. SHOO has a trailing four-quarter earnings surprise of 44%, on average.
Crocs (CROX - Free Report) currently has an Earnings ESP of +0.30% and a Zacks Rank #3. The company is likely to register bottom-line improvement when it reports second-quarter 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.73 suggests an improvement of 22.4% from the year-ago quarter.
Crocs' top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $950.9 million, which indicates an improvement of 48.4% from the figure reported in the prior-year quarter. CROX has a trailing four-quarter earnings surprise of 26.5%, on average.
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Here's How Skechers (SKX) is Placed Ahead of Q2 Earnings
Skechers U.S.A., Inc. (SKX - Free Report) is likely to register an increase in the top line when it reports second-quarter 2022 results on Jul 26, after the market closes. The Zacks Consensus Estimate for revenues is pegged at $1,783 million, indicating growth of 7.6% from the prior-year reported figure.
The bottom line of this designer, developer, marketer and distributor of lifestyle and performance footwear is expected to decline year over year. The Zacks Consensus Estimate for earnings per share for the quarter under discussion has been stable at 55 cents over the past 30 days and suggests a decline of 37.5% from the year-ago period.
Skechers has a trailing four-quarter earnings surprise of 23.6%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 6.9%.
Key Factors to Note
Skechers’ greater emphasis on a new line of products, prudent inventory management and momentum in direct-to-consumer business is likely to have contributed to its second-quarter performance. Management has been directing resources to enhance digital capabilities, including augmenting website features and mobile applications, for a while. Efforts and innovations related to comfort technology footwear have been yielding results as well.
Skechers’ international business remains a significant sales driver. Management continues to expand the company’s global reach in the footwear market through distribution networks, subsidiaries and joint ventures. Strong wholesale and direct-to-consumer businesses have been aiding the overall performance for a while.
All the aforesaid factors are most likely to have benefited Skechers’ performance in the quarter under review. On its last earnings call, management had projected second-quarter sales between $1.75 billion and $1.8 billion.
In spite of the aforementioned tailwinds, we cannot ignore the impacts of recent pandemic-related shutdowns in China, geopolitical tensions, inflationary pressures and ongoing supply chain challenges on the company’s quarterly results. Management had cautioned about gross margin contraction in the second quarter owing to higher freight costs. This might get reflected in the bottom line as well. Skechers’ second-quarter earnings projection of 50-55 cents a share suggests a sharp decline from earnings of 88 cents reported in the year-ago period.
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 predicts 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 chances 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 +1.82% and a Zacks Rank #3.
3 More Stocks With Favorable Combination
Here are three other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat:
Caleres (CAL - Free Report) currently has an Earnings ESP of +0.25% and a Zacks Rank #1. The company is likely to register bottom-line improvement when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.32 suggests an improvement from $1.19 reported in the year-ago quarter.
Caleres' top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $736.1 million, which indicates an improvement of 9% from the figure reported in the prior-year quarter. CAL has a trailing four-quarter earnings surprise of 62.9%, on average.
Steven Madden (SHOO - Free Report) currently has an Earnings ESP of +3.74% and a Zacks Rank #3. The company is likely to register bottom-line improvement when it reports second-quarter 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 59 cents suggests an improvement from 48 cents reported in the year-ago quarter.
Steven Madden's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues stands at $493.4 million, which indicates an improvement of 24% from the figure reported in the prior-year quarter. SHOO has a trailing four-quarter earnings surprise of 44%, on average.
Crocs (CROX - Free Report) currently has an Earnings ESP of +0.30% and a Zacks Rank #3. The company is likely to register bottom-line improvement when it reports second-quarter 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.73 suggests an improvement of 22.4% from the year-ago quarter.
Crocs' top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $950.9 million, which indicates an improvement of 48.4% from the figure reported in the prior-year quarter. CROX has a trailing four-quarter earnings surprise of 26.5%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.