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Here's Why You Should Consider Investing in Skechers (SKX) Now
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Skechers U.S.A., Inc. (SKX - Free Report) is well poised for growth courtesy of its robust business strategies. The company remains committed to enhancing its omni-channel capabilities by expanding its direct-to-consumer (DTC) business and enhancing its foothold internationally. The company has been gaining from continued global demand for its Comfort Technology footwear.
This Zacks Rank #1 (Strong Buy) stock has gained 27.7% in the past six months compared with the industry’s growth of 4.4%. The Zacks Consensus Estimate for Skechers’ 2023 sales and earnings per share (EPS) is currently pegged at $8 billion and $3.14, respectively, suggesting respective growth of 7.8% and 31.9% from the corresponding year-ago reported figures.
Image Source: Zacks Investment Research
For 2024, the Zacks Consensus Estimate for sales and EPS stands at $8.84 billion and $3.78, respectively, indicating corresponding increases of 10.1% and 20.3% from the prior-year reported numbers. This reflects the analysts’ optimism about the stock.
Let’s delve into the factors that make investing in Skechers a smart choice at the moment.
Skechers has been investing strategically to improve its infrastructure worldwide, primarily in e-commerce platforms and distribution centers. The company is focused on launching more innovative and comfortable technology products, building multi-platform marketing campaigns and launching more e-commerce sites globally.
Skechers has also been directing its resources to boost its digital capabilities, including 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 sales. Moreover, SKX has been enhancing its distribution facilities and supply-chain production capabilities. These investments highlight SKX’s progress as an omni-channel retailer.
During the first quarter of 2023, Skechers’ DTC sales grew 24.5% year over year to $707.3 million. This included a 25% increase in domestic DTC sales and a 24% increase in international DTC sales. DTC unit volume rose 27% on a year-over-year basis. DTC sales jumped on growth of 29% in the Americas, 18% in Asia Pacific and 30% in Europe, Middle East & Africa.
Further, the company’s international business remains a significant sales growth driver. In first-quarter 2023, international sales increased 21.1% year over year, accounting for 63% of the overall sales for the quarter. Region-wise, sales dipped 0.1% year over year to $945.9 million in the Americas, while the metric increased 21.1% to $534.5 million in EMEA and 20.9% year over year to $521.5 million in APAC.
Impressively, the company’s 2023 outlook reflects sales momentum across most of the company’s international markets throughout the year. For 2023, management projects sales between $7.9 billion and $8.1 billion and earnings per share between $3.00 and $3.20. These figures show an improvement from sales of $7.44 billion and EPS of $2.38 registered in 2022.
The Aaron's Company is a provider of lease-to-own and retail purchase solutions.
The Zacks Consensus Estimate for The Aaron's Company’s current financial-year sales and earnings per share suggests a decline of 1.7% and 42%, respectively, from the corresponding year-ago reported figures. AAN has a trailing four-quarter earnings surprise of 199.8%, on average.
Alto Ingredients is a producer of specialty alcohols and essential ingredients.
The Zacks Consensus Estimate for Alto Ingredients’ current financial-year sales suggests a decline of 6.6%, while earnings per share are expected to grow by 78.3% from the corresponding year-ago reported figures. ALTO has an earnings surprise of 10.5% in the last reported quarter.
Adtalem Global Education is a provider of workforce solutions. ATGE has a trailing four-quarter earnings surprise of 20.1%, on average.
The Zacks Consensus Estimate for Adtalem Global Education’s current financial year sales suggests a decline of 0.2%, while earnings per share are expected to grow by 27.2% from the corresponding year-ago reported figures.
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Here's Why You Should Consider Investing in Skechers (SKX) Now
Skechers U.S.A., Inc. (SKX - Free Report) is well poised for growth courtesy of its robust business strategies. The company remains committed to enhancing its omni-channel capabilities by expanding its direct-to-consumer (DTC) business and enhancing its foothold internationally. The company has been gaining from continued global demand for its Comfort Technology footwear.
This Zacks Rank #1 (Strong Buy) stock has gained 27.7% in the past six months compared with the industry’s growth of 4.4%. The Zacks Consensus Estimate for Skechers’ 2023 sales and earnings per share (EPS) is currently pegged at $8 billion and $3.14, respectively, suggesting respective growth of 7.8% and 31.9% from the corresponding year-ago reported figures.
Image Source: Zacks Investment Research
For 2024, the Zacks Consensus Estimate for sales and EPS stands at $8.84 billion and $3.78, respectively, indicating corresponding increases of 10.1% and 20.3% from the prior-year reported numbers. This reflects the analysts’ optimism about the stock.
Let’s delve into the factors that make investing in Skechers a smart choice at the moment.
Skechers has been investing strategically to improve its infrastructure worldwide, primarily in e-commerce platforms and distribution centers. The company is focused on launching more innovative and comfortable technology products, building multi-platform marketing campaigns and launching more e-commerce sites globally.
Skechers has also been directing its resources to boost its digital capabilities, including 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 sales. Moreover, SKX has been enhancing its distribution facilities and supply-chain production capabilities. These investments highlight SKX’s progress as an omni-channel retailer.
During the first quarter of 2023, Skechers’ DTC sales grew 24.5% year over year to $707.3 million. This included a 25% increase in domestic DTC sales and a 24% increase in international DTC sales. DTC unit volume rose 27% on a year-over-year basis. DTC sales jumped on growth of 29% in the Americas, 18% in Asia Pacific and 30% in Europe, Middle East & Africa.
Further, the company’s international business remains a significant sales growth driver. In first-quarter 2023, international sales increased 21.1% year over year, accounting for 63% of the overall sales for the quarter. Region-wise, sales dipped 0.1% year over year to $945.9 million in the Americas, while the metric increased 21.1% to $534.5 million in EMEA and 20.9% year over year to $521.5 million in APAC.
Impressively, the company’s 2023 outlook reflects sales momentum across most of the company’s international markets throughout the year. For 2023, management projects sales between $7.9 billion and $8.1 billion and earnings per share between $3.00 and $3.20. These figures show an improvement from sales of $7.44 billion and EPS of $2.38 registered in 2022.
Key Picks
Some better-ranked stocks are The Aaron's Company, Inc. (AAN - Free Report) , Alto Ingredients, Inc. (ALTO - Free Report) and Adtalem Global Education, Inc. (ATGE - Free Report) , each of which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Aaron's Company is a provider of lease-to-own and retail purchase solutions.
The Zacks Consensus Estimate for The Aaron's Company’s current financial-year sales and earnings per share suggests a decline of 1.7% and 42%, respectively, from the corresponding year-ago reported figures. AAN has a trailing four-quarter earnings surprise of 199.8%, on average.
Alto Ingredients is a producer of specialty alcohols and essential ingredients.
The Zacks Consensus Estimate for Alto Ingredients’ current financial-year sales suggests a decline of 6.6%, while earnings per share are expected to grow by 78.3% from the corresponding year-ago reported figures. ALTO has an earnings surprise of 10.5% in the last reported quarter.
Adtalem Global Education is a provider of workforce solutions. ATGE has a trailing four-quarter earnings surprise of 20.1%, on average.
The Zacks Consensus Estimate for Adtalem Global Education’s current financial year sales suggests a decline of 0.2%, while earnings per share are expected to grow by 27.2% from the corresponding year-ago reported figures.