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Skechers (SKX) Gains 25.4% in Past Six Months: Here's Why
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Skechers U.S.A., Inc. (SKX - Free Report) is focused on boosting its omnichannel capabilities by expanding its direct-to-consumer business and enhancing its international foothold. SKX has been gaining from growth in its domestic and international channels for a while now. Continued global demand for its Comfort Technology footwear is steadily driving results.
Against a challenging operating backdrop, shares of this current Zacks Rank #2 (Buy) footwear leader have appreciated 25.4% in the past six months, thanks to the player’s aforesaid strengths. The industry has gained 23.2% over the same time frame.
Moreover, the Zacks Consensus Estimate for Skechers’ 2023 sales and earnings per share (EPS) is currently pegged at $7.97 billion and $3.04 each, suggesting respective growth of 8.6% and 34.3% from the corresponding year-ago reported figures. For the first quarter of 2023, the Zacks Consensus Estimate for sales at $1.77 billion, indicating an increase of 7.5% from the corresponding prior-year reported number. This reflects the analysts’ optimism about the stock.
Let’s delve deeper.
Detailing Strategies
Skechers has a diversified portfolio of brands that includes a wide range of fashion, athletic, non-athletic and work footwear at compelling prices. Lately, the company is focusing on comfort-based footwear and apparel products as consumers are embracing a relaxed lifestyle.
Image Source: Zacks Investment Research
The company has been making strategic investments to improve its infrastructure worldwide, primarily e-commerce platforms and distribution centers. Management is also focusing on designing and developing new products. Going ahead, SKX plans to introduce more innovative and comfortable technology products, build multi-platform marketing campaigns and launch more e-commerce sites around the world.
Skechers has been directing resources to enhance its digital capabilities, including augmenting website features, mobile applications and a loyalty program. Investments made to integrate store and digital ecosystems for developing a seamless omnichannel experience are likely to drive greater sales. The company has updated its point-of-sale systems to better engage with customers, both offline and online. Initiatives such as “Buy Online, Pick-Up in Store” and “Buy Online, Pickup at Curbside” are worth mentioning.
In addition, the company has been enhancing its distribution facilities and supply-chain production capabilities. Hence, SKX has been enhancing its online presence for a while by further investing in digital and omnichannel capabilities. We note that solid double-digit increase in the digital commerce channels aided domestic DTC sales growth in the reported quarter.
During the third quarter, Skechers continued the rollout of its e-commerce platform. Management launched e-commerce sites in Poland, Switzerland and Japan. It intends to launch more e-commerce sites this year.
Furthermore, Skechers’ international business remains a significant sales growth driver for the company. SKX is poised to enhance its global reach in the footwear market through its distribution networks, subsidiaries and joint ventures. In third-quarter 2022, international sales increased 24.6% year over year.
Region-wise, sales increased 16.2% year over year to $948 million in the Americas and 47.6% to $469.8 million in EMEA. The metric grew 8.6% year over year to $460.6 million in APAC.
Wrapping up, Skechers is likely to continue performing well on the back of such sturdy endeavors.
Eye These Solid Picks Too
Here we highlighted three top-ranked stocks, namely, Oxford Industries (OXM - Free Report) , lululemon athletica (LULU - Free Report) and Ralph Lauren (RL - Free Report) .
Oxford Industries, which designs, sources, markets and distributes products of lifestyle and other brands, sports a Zacks Rank #1 (Strong Buy). Oxford Industries has a trailing four-quarter earnings surprise of 18.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OXM’s current financial-year EPS suggests growth of 34.4% from the year-ago reported number.
lululemon athletica is a yoga-inspired athletic apparel company. LULU has a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS suggests growth of 28.3% and 27.2%, respectively, from the year-ago corresponding figures. LULU has a trailing four-quarter earnings surprise of 6.7%, on average.
Ralph Lauren, a footwear and accessories dealer, has a Zacks Rank of 2 at present. RL has a trailing four-quarter earnings surprise of 28.7%, on average.
The Zacks Consensus Estimate for Ralph Lauren’s next financial-year sales and EPS suggests growth of 5% and 13.4%, respectively, from the year-ago corresponding figures.
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Skechers (SKX) Gains 25.4% in Past Six Months: Here's Why
Skechers U.S.A., Inc. (SKX - Free Report) is focused on boosting its omnichannel capabilities by expanding its direct-to-consumer business and enhancing its international foothold. SKX has been gaining from growth in its domestic and international channels for a while now. Continued global demand for its Comfort Technology footwear is steadily driving results.
Against a challenging operating backdrop, shares of this current Zacks Rank #2 (Buy) footwear leader have appreciated 25.4% in the past six months, thanks to the player’s aforesaid strengths. The industry has gained 23.2% over the same time frame.
Moreover, the Zacks Consensus Estimate for Skechers’ 2023 sales and earnings per share (EPS) is currently pegged at $7.97 billion and $3.04 each, suggesting respective growth of 8.6% and 34.3% from the corresponding year-ago reported figures. For the first quarter of 2023, the Zacks Consensus Estimate for sales at $1.77 billion, indicating an increase of 7.5% from the corresponding prior-year reported number. This reflects the analysts’ optimism about the stock.
Let’s delve deeper.
Detailing Strategies
Skechers has a diversified portfolio of brands that includes a wide range of fashion, athletic, non-athletic and work footwear at compelling prices. Lately, the company is focusing on comfort-based footwear and apparel products as consumers are embracing a relaxed lifestyle.
Image Source: Zacks Investment Research
The company has been making strategic investments to improve its infrastructure worldwide, primarily e-commerce platforms and distribution centers. Management is also focusing on designing and developing new products. Going ahead, SKX plans to introduce more innovative and comfortable technology products, build multi-platform marketing campaigns and launch more e-commerce sites around the world.
Skechers has been directing resources to enhance its digital capabilities, including augmenting website features, mobile applications and a loyalty program. Investments made to integrate store and digital ecosystems for developing a seamless omnichannel experience are likely to drive greater sales. The company has updated its point-of-sale systems to better engage with customers, both offline and online. Initiatives such as “Buy Online, Pick-Up in Store” and “Buy Online, Pickup at Curbside” are worth mentioning.
In addition, the company has been enhancing its distribution facilities and supply-chain production capabilities. Hence, SKX has been enhancing its online presence for a while by further investing in digital and omnichannel capabilities. We note that solid double-digit increase in the digital commerce channels aided domestic DTC sales growth in the reported quarter.
During the third quarter, Skechers continued the rollout of its e-commerce platform. Management launched e-commerce sites in Poland, Switzerland and Japan. It intends to launch more e-commerce sites this year.
Furthermore, Skechers’ international business remains a significant sales growth driver for the company. SKX is poised to enhance its global reach in the footwear market through its distribution networks, subsidiaries and joint ventures. In third-quarter 2022, international sales increased 24.6% year over year.
Region-wise, sales increased 16.2% year over year to $948 million in the Americas and 47.6% to $469.8 million in EMEA. The metric grew 8.6% year over year to $460.6 million in APAC.
Wrapping up, Skechers is likely to continue performing well on the back of such sturdy endeavors.
Eye These Solid Picks Too
Here we highlighted three top-ranked stocks, namely, Oxford Industries (OXM - Free Report) , lululemon athletica (LULU - Free Report) and Ralph Lauren (RL - Free Report) .
Oxford Industries, which designs, sources, markets and distributes products of lifestyle and other brands, sports a Zacks Rank #1 (Strong Buy). Oxford Industries has a trailing four-quarter earnings surprise of 18.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OXM’s current financial-year EPS suggests growth of 34.4% from the year-ago reported number.
lululemon athletica is a yoga-inspired athletic apparel company. LULU has a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS suggests growth of 28.3% and 27.2%, respectively, from the year-ago corresponding figures. LULU has a trailing four-quarter earnings surprise of 6.7%, on average.
Ralph Lauren, a footwear and accessories dealer, has a Zacks Rank of 2 at present. RL has a trailing four-quarter earnings surprise of 28.7%, on average.
The Zacks Consensus Estimate for Ralph Lauren’s next financial-year sales and EPS suggests growth of 5% and 13.4%, respectively, from the year-ago corresponding figures.