We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Skechers U.S.A., Inc. (SKX - Free Report) reported sturdy fourth-quarter 2022 results, with the top and the bottom lines outpacing the Zacks Consensus Estimate and improving year over year. Results gained from strength in SKX’s comfort technology products and sturdy demand for the innovative product portfolio coupled with higher wholesale and direct-to-consumer sales.
Over the past six months, shares of this presently Zacks Rank #3 (Hold) stock have increased 17.9% compared to the industry’s 13.5% growth.
Q4 Highlights
Skechers posted fourth-quarter earnings of 48 cents a share, outpacing the Zacks Consensus Estimate of 38 cents. Also, the bottom line increased 11.6% from the year-earlier quarter’s tally.
image Url copied:
Image Source: Zacks Investment Research
SKX generated sales of $1,878.8 million, surpassing the Zacks Consensus Estimate of $1,776 million. The top line grew 13.5% year over year owing to a 22.3% increase in domestic sales and an 8.7% rise in international sales, mainly buoyed by strength in wholesale sales. On a constant-currency basis, total sales grew 19.1%.
Starting from the first quarter of 2022, Skechers reported segmental results for wholesale and direct-to-consumer operations, including its joint venture businesses. All the company’s segments registered growth, with wholesale sales growing 15.7% and direct-to-consumer (DTC) rising 10.8%.
Wholesale sales were driven by 31.1% growth in EMEA and 18.6% in AMER, whereas wholesale volumes jumped 9.4% and average selling price rose 6.3%. DTC sales jumped on growth of 27% in AMER and 19.1% in EMEA. DTC average selling price dipped 3.5%, with volumes growing 14.8% year over year.
Region-wise, sales increased 22.5% year over year to $925.6 million in the Americas and 28.9% to $413.7 million in EMEA. The metric fell 6.8% year over year to $539.5 million in APAC.
Margins & Costs
Gross profit increased 12.6% year over year to $909.7 million. However, the gross margin declined 40 basis points (bps) to 48.4% due to increased cost per unit and elevated promotions, partly offset by average selling price rises.
Total operating expenses grew 15.1% year over year to $823 million. The metric, as a percentage of sales, increased 60 bps to 43.8%. Selling expenses jumped 13.7% from the year-ago period’s level to $158 million due to a rise in global digital and brand demand creation spending. Also, general and administrative expenses jumped 15.4% to $665.1 million. Increased costs were due to the volume-driven labor and distribution costs as well as elevated costs at the domestic distribution center stemming from supply-chain and logistics headwinds.
Other Financial Aspects
As of Dec 31, 2022, cash and cash equivalents totaled $615.7 million, while short-term investments amounted to $102.2 million.
Skechers ended the quarter with long-term borrowings of $216.5 million and shareholders’ equity of $3,570 million, excluding non-controlling interests of $301.6 million. Further, the total inventory increased 23.6% to $1,818 million.
In 2022, management repurchased roughly 1.9 million shares of its Class A common stock for $74.2 million. As of Dec 31, 2022, $425.8 million was available under SKX’s share buyback program.
As of Dec 31, 2022, SKX had 4,537 stores, including 539 domestic stores, 905 international locations, and 3,093 distributors, licensees and franchise stores.
Outlook
For 2023, management believes in accomplishing sales between $7.75 billion and $8 billion and earnings per share between $2.80 and $3.00. Total capital expenditures are likely to come in the $300-$350 million for the year.
For the first quarter of 2023, SKX is likely to achieve sales between $1.80 billion and $1.85 billion and earnings per share of between 55-60 cents.
Oxford Industries, which designs, sources, markets and distributes lifestyle products 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 34.2% from the year-ago reported number.
lululemon athletica is a yoga-inspired athletic apparel company. LULU has a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS suggests growth of 27.7% and 27.5%, respectively, from the year-ago corresponding figures. LULU has a trailing four-quarter earnings surprise of 6.7%, on average.
Deckers, a footwear dealer, has a Zacks Rank of 2 at present. DECK has a trailing four-quarter earnings surprise of 4.7%, on average.
The Zacks Consensus Estimate for Deckers’ current financial-year sales and EPS suggests growth of 11.9% and 12.1%, respectively, from the year-ago corresponding figures.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Skechers' (SKX) Q4 Earnings Beat Estimates, Sales Rise Y/Y
Skechers U.S.A., Inc. (SKX - Free Report) reported sturdy fourth-quarter 2022 results, with the top and the bottom lines outpacing the Zacks Consensus Estimate and improving year over year. Results gained from strength in SKX’s comfort technology products and sturdy demand for the innovative product portfolio coupled with higher wholesale and direct-to-consumer sales.
Over the past six months, shares of this presently Zacks Rank #3 (Hold) stock have increased 17.9% compared to the industry’s 13.5% growth.
Q4 Highlights
Skechers posted fourth-quarter earnings of 48 cents a share, outpacing the Zacks Consensus Estimate of 38 cents. Also, the bottom line increased 11.6% from the year-earlier quarter’s tally.
image Url copied:
Image Source: Zacks Investment Research
SKX generated sales of $1,878.8 million, surpassing the Zacks Consensus Estimate of $1,776 million. The top line grew 13.5% year over year owing to a 22.3% increase in domestic sales and an 8.7% rise in international sales, mainly buoyed by strength in wholesale sales. On a constant-currency basis, total sales grew 19.1%.
Starting from the first quarter of 2022, Skechers reported segmental results for wholesale and direct-to-consumer operations, including its joint venture businesses. All the company’s segments registered growth, with wholesale sales growing 15.7% and direct-to-consumer (DTC) rising 10.8%.
Wholesale sales were driven by 31.1% growth in EMEA and 18.6% in AMER, whereas wholesale volumes jumped 9.4% and average selling price rose 6.3%. DTC sales jumped on growth of 27% in AMER and 19.1% in EMEA. DTC average selling price dipped 3.5%, with volumes growing 14.8% year over year.
Region-wise, sales increased 22.5% year over year to $925.6 million in the Americas and 28.9% to $413.7 million in EMEA. The metric fell 6.8% year over year to $539.5 million in APAC.
Margins & Costs
Gross profit increased 12.6% year over year to $909.7 million. However, the gross margin declined 40 basis points (bps) to 48.4% due to increased cost per unit and elevated promotions, partly offset by average selling price rises.
Total operating expenses grew 15.1% year over year to $823 million. The metric, as a percentage of sales, increased 60 bps to 43.8%. Selling expenses jumped 13.7% from the year-ago period’s level to $158 million due to a rise in global digital and brand demand creation spending. Also, general and administrative expenses jumped 15.4% to $665.1 million. Increased costs were due to the volume-driven labor and distribution costs as well as elevated costs at the domestic distribution center stemming from supply-chain and logistics headwinds.
Other Financial Aspects
As of Dec 31, 2022, cash and cash equivalents totaled $615.7 million, while short-term investments amounted to $102.2 million.
Skechers ended the quarter with long-term borrowings of $216.5 million and shareholders’ equity of $3,570 million, excluding non-controlling interests of $301.6 million. Further, the total inventory increased 23.6% to $1,818 million.
In 2022, management repurchased roughly 1.9 million shares of its Class A common stock for $74.2 million. As of Dec 31, 2022, $425.8 million was available under SKX’s share buyback program.
As of Dec 31, 2022, SKX had 4,537 stores, including 539 domestic stores, 905 international locations, and 3,093 distributors, licensees and franchise stores.
Outlook
For 2023, management believes in accomplishing sales between $7.75 billion and $8 billion and earnings per share between $2.80 and $3.00. Total capital expenditures are likely to come in the $300-$350 million for the year.
For the first quarter of 2023, SKX is likely to achieve sales between $1.80 billion and $1.85 billion and earnings per share of between 55-60 cents.
Eye These Solid Picks
Here we highlighted three better-ranked stocks, namely, Oxford Industries (OXM - Free Report) , lululemon athletica (LULU - Free Report) and Deckers (DECK - Free Report) .
Oxford Industries, which designs, sources, markets and distributes lifestyle products 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 34.2% from the year-ago reported number.
lululemon athletica is a yoga-inspired athletic apparel company. LULU has a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS suggests growth of 27.7% and 27.5%, respectively, from the year-ago corresponding figures. LULU has a trailing four-quarter earnings surprise of 6.7%, on average.
Deckers, a footwear dealer, has a Zacks Rank of 2 at present. DECK has a trailing four-quarter earnings surprise of 4.7%, on average.
The Zacks Consensus Estimate for Deckers’ current financial-year sales and EPS suggests growth of 11.9% and 12.1%, respectively, from the year-ago corresponding figures.