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Skechers (SKX) Omni-Channel & Other Efforts Appear Good
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Skechers U.S.A., Inc. (SKX - Free Report) is focused on boosting its omni-channel capabilities by expanding its direct-to-consumer business and enhancing its foothold internationally. The company has been gaining from growth in its domestic and international channels for a while now. Continued global demand for its Comfort Technology footwear has also been aiding its performance.
Skechers 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, sturdy demand for the innovative product portfolio and higher wholesale and direct-to-consumer (DTC) sales. The top line grew 13.5% year over year in the reported quarter, owing to a 22.3% increase in domestic sales and an 8.7% rise in international sales, mainly buoyed by strength in wholesale sales.
Management remains optimistic about 2023. The outlook reflects sales momentum across most of the company’s international markets throughout the year. A China market recovery with a steady improvement in the year, better distribution operating efficiency on enhanced capacity and remediation endeavors. Also, the gross margin is likely to benefit from lower logistics costs, mainly in freight. For 2023, management believes in accomplishing sales between $7.75 billion and $8 billion and earnings per share between $2.80 and $3.00. The guidance indicates growth from sales of $7.44 billion and adjusted earnings per share of $2.38 delivered in 2022. 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 has been focusing on comfort-based footwear and apparel products as consumers are embracing a relaxed lifestyle.
The company has been making strategic investments to improve its infrastructure worldwide, primarily in e-commerce platforms and distribution centers. Management is also focusing on designing and developing new products. SKX plans to introduce more innovative and comfort technology products, build multi-platform marketing campaigns and launch more e-commerce sites around the world.
Skechers, which shares space with Deckers (DECK - Free Report) , Caleres (CAL - Free Report) and Steven Madden (SHOO - Free Report) , has been directing resources to enhance its digital capabilities. This includes augmenting website features, mobile applications and loyalty programs. 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 offline and online customers. 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 omni-channel capabilities. 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.
Wrapping up, Skechers looks well poised for growth in the future on the back of such sturdy endeavors.
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Skechers (SKX) Omni-Channel & Other Efforts Appear Good
Skechers U.S.A., Inc. (SKX - Free Report) is focused on boosting its omni-channel capabilities by expanding its direct-to-consumer business and enhancing its foothold internationally. The company has been gaining from growth in its domestic and international channels for a while now. Continued global demand for its Comfort Technology footwear has also been aiding its performance.
Skechers 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, sturdy demand for the innovative product portfolio and higher wholesale and direct-to-consumer (DTC) sales. The top line grew 13.5% year over year in the reported quarter, owing to a 22.3% increase in domestic sales and an 8.7% rise in international sales, mainly buoyed by strength in wholesale sales.
Management remains optimistic about 2023. The outlook reflects sales momentum across most of the company’s international markets throughout the year. A China market recovery with a steady improvement in the year, better distribution operating efficiency on enhanced capacity and remediation endeavors. Also, the gross margin is likely to benefit from lower logistics costs, mainly in freight. For 2023, management believes in accomplishing sales between $7.75 billion and $8 billion and earnings per share between $2.80 and $3.00. The guidance indicates growth from sales of $7.44 billion and adjusted earnings per share of $2.38 delivered in 2022. 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 has been focusing on comfort-based footwear and apparel products as consumers are embracing a relaxed lifestyle.
The company has been making strategic investments to improve its infrastructure worldwide, primarily in e-commerce platforms and distribution centers. Management is also focusing on designing and developing new products. SKX plans to introduce more innovative and comfort technology products, build multi-platform marketing campaigns and launch more e-commerce sites around the world.
Skechers, which shares space with Deckers (DECK - Free Report) , Caleres (CAL - Free Report) and Steven Madden (SHOO - Free Report) , has been directing resources to enhance its digital capabilities. This includes augmenting website features, mobile applications and loyalty programs. 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 offline and online customers. 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 omni-channel capabilities. 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.
Wrapping up, Skechers looks well poised for growth in the future on the back of such sturdy endeavors.