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Skechers (SKX) Appears Promising on Omnichannel Strategies
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Skechers U.S.A., Inc. (SKX - Free Report) appears laudable, thanks to its robust business strategies. The company remains focused on boosting its omnichannel capabilities by expanding its direct-to-consumer (DTC) 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 the results.
This footwear leader has appreciated 28.2% in the past six months against the industry’s 0.2% dip. Moreover, the Zacks Consensus Estimate for Skechers’ 2023 sales and earnings per share (EPS) is currently pegged at $8.03 billion and $3.14 each, suggesting respective growth of 7.8% and 31.9% from the corresponding year-ago reported figures.
For 2024, the consensus estimate for sales and EPS stands at $8.84 billion and $3.78 each, indicating corresponding increases of 10.1% and 20.3% from the prior-year reported numbers. This reflects analysts’ optimism about the stock.
Let’s Delve Deeper
Skechers has been making strategic investments to improve its worldwide infrastructure, primarily e-commerce platforms and distribution centers. The company is focused 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.
During the first quarter of 2023, Skechers’ DTC sales grew 24.5% year over year to $707.3 million. DTC sales growth included increases of 25% in domestic DTC sales and 24% in international DTC sales. DTC unit volume rose 27% year over year. Also, growth of 29% in the Americas, 18% in Asia Pacific (APAC) and 30% in Europe, Middle East & Africa (EMEA) aided the segment’s performance.
Furthermore, Skechers’ international business remains a significant sales growth driver. SKX is poised to enhance its global reach in the footwear market through its distribution networks, subsidiaries and joint ventures. In the first quarter, 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.
Image Source: Zacks Investment Research
To wrap up, this Zacks Rank #1 (Strong Buy) stock is likely to continue performing well on the back of such sturdy endeavors.
RCL has a trailing four-quarter earnings surprise of 26.4%, on average. The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates increases of 47.9% and 158.3%, respectively, from the year-ago period’s reported levels.
Crocs, which offers casual lifestyle footwear and accessories, presently carries a Zacks Rank #2 (Buy). The expected EPS growth rate for three to five years is 15%.
The Zacks Consensus Estimate for Crocs’ current financial-year sales and EPS suggests growth of 13.1% and 2.8% from the year-ago period’s reported figure. CROX has a trailing four-quarter earnings surprise of 21.8%, on average.
lululemon athletica is a yoga-inspired athletic apparel company. LULU carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS suggests growth of 16.7% and 18%, respectively, from the year-ago corresponding figures. LULU has a trailing four-quarter earnings surprise of 9.9%, on average.
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Skechers (SKX) Appears Promising on Omnichannel Strategies
Skechers U.S.A., Inc. (SKX - Free Report) appears laudable, thanks to its robust business strategies. The company remains focused on boosting its omnichannel capabilities by expanding its direct-to-consumer (DTC) 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 the results.
This footwear leader has appreciated 28.2% in the past six months against the industry’s 0.2% dip. Moreover, the Zacks Consensus Estimate for Skechers’ 2023 sales and earnings per share (EPS) is currently pegged at $8.03 billion and $3.14 each, suggesting respective growth of 7.8% and 31.9% from the corresponding year-ago reported figures.
For 2024, the consensus estimate for sales and EPS stands at $8.84 billion and $3.78 each, indicating corresponding increases of 10.1% and 20.3% from the prior-year reported numbers. This reflects analysts’ optimism about the stock.
Let’s Delve Deeper
Skechers has been making strategic investments to improve its worldwide infrastructure, primarily e-commerce platforms and distribution centers. The company is focused 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.
During the first quarter of 2023, Skechers’ DTC sales grew 24.5% year over year to $707.3 million. DTC sales growth included increases of 25% in domestic DTC sales and 24% in international DTC sales. DTC unit volume rose 27% year over year. Also, growth of 29% in the Americas, 18% in Asia Pacific (APAC) and 30% in Europe, Middle East & Africa (EMEA) aided the segment’s performance.
Furthermore, Skechers’ international business remains a significant sales growth driver. SKX is poised to enhance its global reach in the footwear market through its distribution networks, subsidiaries and joint ventures. In the first quarter, 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.
Image Source: Zacks Investment Research
To wrap up, this Zacks Rank #1 (Strong Buy) stock is likely to continue performing well on the back of such sturdy endeavors.
Eye These Other Solid Picks
Some other top-ranked companies are Royal Caribbean (RCL - Free Report) , Crocs (CROX - Free Report) and lululemon athletica (LULU - Free Report) .
Royal Caribbean sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
RCL has a trailing four-quarter earnings surprise of 26.4%, on average. The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates increases of 47.9% and 158.3%, respectively, from the year-ago period’s reported levels.
Crocs, which offers casual lifestyle footwear and accessories, presently carries a Zacks Rank #2 (Buy). The expected EPS growth rate for three to five years is 15%.
The Zacks Consensus Estimate for Crocs’ current financial-year sales and EPS suggests growth of 13.1% and 2.8% from the year-ago period’s reported figure. CROX has a trailing four-quarter earnings surprise of 21.8%, on average.
lululemon athletica is a yoga-inspired athletic apparel company. LULU carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS suggests growth of 16.7% and 18%, respectively, from the year-ago corresponding figures. LULU has a trailing four-quarter earnings surprise of 9.9%, on average.