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.
Here's Why Skechers (SKX) Outpaces Its Industry in a Year
Read MoreHide Full Article
Skechers U.S.A., Inc. (SKX - Free Report) leverages a varied product mix that spans fashion, athletic, casual and work footwear, anchoring its robust market presence and appeal across diverse consumer segments. Its commitment to delivering comfort-oriented footwear resonates with prevailing consumer preferences.
The company's strategies, which include a multi-brand approach, the expansion of its global retail footprint, embracing digital initiatives and enhancing direct-to-consumer (DTC) channels, along with adept financial stewardship, set a solid foundation for ongoing expansion and securing a leading position in the ever-evolving global footwear market.
This Zacks Rank #3 (Hold) stock has outpaced the Zacks Shoes and Retail Apparel industry over the past year. In the said period, shares of the company have gained 23.7% against the industry’s decline of 26.1%.
An uptrend in the Zacks Consensus Estimate echoes the same sentiment. The Zacks Consensus Estimate for earnings per share for the current and next fiscal years has increased 1 penny and 2 cents to $3.82 and $4.38, respectively, over the past 30 days. The Zacks Consensus Estimate for sales for the current and next fiscal years is pegged at $8.75 billion and $9.56 billion, respectively, suggesting 9.3% year-over-year growth each.
Image Source: Zacks Investment Research
DTC Success
Skechers achieved a milestone in its DTC segment in the fourth quarter, with DTC sales exceeding 50% of its total sales for the first time. This significant achievement reflects the success of Skechers' integrated retail strategy, which effectively meets consumer demands through a blend of physical stores and digital platforms. The DTC segment witnessed a year-over-year sales growth of 20.3% in the fourth quarter of 2023, reaching $998.3 million and representing 50.9% of total sales, showcasing Skechers' ability to engage consumers with its innovative comfort technology and strategic marketing efforts.
Retail Network Expansion Bodes Well
In the fourth quarter of 2023, Skechers significantly expanded its retail network, surpassing the milestone of more than 5,000 retail locations globally. This quarter saw the addition of 67 company-owned stores, with 12 closures, bringing the total count to 1,648 outlets. This strategic expansion underscores Skechers’ commitment to enhancing its global presence and ensuring that customers worldwide have greater access to its products.
SKX's international operations have significantly contributed to its growth, with international sales increasing 6.9% year over year in the fourth quarter of 2023, making up about 64% of the total sales. This underscores the brand's extensive global reach.
The Asia Pacific region, particularly China, stood out with remarkable year-over-year sales growth of 15.3%. China experienced a 22.3% increase. The success in international markets is a testament to SKX’s ability to cater to varied consumer tastes, seize on emerging trends and employ effective regional distribution strategies.
Focused Growth & Strategic Outlook
Looking ahead, Skechers aims to further enhance its DTC segment and international sales. Plans include launching stores, bolstering omnichannel capabilities and establishing a distribution center in China. For 2024, the company projects sales between $8.6 billion and $8.8 billion, suggesting a rise from the $8 billion reported in 2023, with EPS expected between $3.65 and $3.85.
Skechers plans to allocate $350-$400 million in capital expenditure, targeting areas such as store openings, omnichannel expansion and distribution infrastructure improvement. This strategic focus positions the company optimistically toward achieving its goal of $10 billion in annual sales by 2026, highlighting its commitment to growth and market leadership.
Stocks to Consider
A few better-ranked stocks are American Eagle Outfitters Inc. (AEO - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) and Deckers Outdoor Corporation (DECK - Free Report) .
American Eagle Outfitters is a specialty retailer of casual apparel, accessories and footwear. The company flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal-year earnings and sales indicates growth of 12.5% and 3.3% from the year-ago period’s reported figures. AEO has a trailing four-quarter average earnings surprise of 22.7%.
Abercrombie & Fitch is a specialty retailer of premium, high-quality casual apparel. The company currently sports a Zacks Rank #1. ANF has a trailing four-quarter average earnings surprise of 715.6%.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year earnings and sales indicates growth of 19.1% and 5.6% from the year-ago period’s reported figures.
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. The company sports a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Deckers’ current fiscal-year earnings and sales indicates growth of 38.7% and 15.8% from the year-ago period’s reported figures. DECK has a trailing four-quarter average earnings surprise of 32.1%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Here's Why Skechers (SKX) Outpaces Its Industry in a Year
Skechers U.S.A., Inc. (SKX - Free Report) leverages a varied product mix that spans fashion, athletic, casual and work footwear, anchoring its robust market presence and appeal across diverse consumer segments. Its commitment to delivering comfort-oriented footwear resonates with prevailing consumer preferences.
The company's strategies, which include a multi-brand approach, the expansion of its global retail footprint, embracing digital initiatives and enhancing direct-to-consumer (DTC) channels, along with adept financial stewardship, set a solid foundation for ongoing expansion and securing a leading position in the ever-evolving global footwear market.
This Zacks Rank #3 (Hold) stock has outpaced the Zacks Shoes and Retail Apparel industry over the past year. In the said period, shares of the company have gained 23.7% against the industry’s decline of 26.1%.
An uptrend in the Zacks Consensus Estimate echoes the same sentiment. The Zacks Consensus Estimate for earnings per share for the current and next fiscal years has increased 1 penny and 2 cents to $3.82 and $4.38, respectively, over the past 30 days. The Zacks Consensus Estimate for sales for the current and next fiscal years is pegged at $8.75 billion and $9.56 billion, respectively, suggesting 9.3% year-over-year growth each.
Image Source: Zacks Investment Research
DTC Success
Skechers achieved a milestone in its DTC segment in the fourth quarter, with DTC sales exceeding 50% of its total sales for the first time. This significant achievement reflects the success of Skechers' integrated retail strategy, which effectively meets consumer demands through a blend of physical stores and digital platforms. The DTC segment witnessed a year-over-year sales growth of 20.3% in the fourth quarter of 2023, reaching $998.3 million and representing 50.9% of total sales, showcasing Skechers' ability to engage consumers with its innovative comfort technology and strategic marketing efforts.
Retail Network Expansion Bodes Well
In the fourth quarter of 2023, Skechers significantly expanded its retail network, surpassing the milestone of more than 5,000 retail locations globally. This quarter saw the addition of 67 company-owned stores, with 12 closures, bringing the total count to 1,648 outlets. This strategic expansion underscores Skechers’ commitment to enhancing its global presence and ensuring that customers worldwide have greater access to its products.
SKX's international operations have significantly contributed to its growth, with international sales increasing 6.9% year over year in the fourth quarter of 2023, making up about 64% of the total sales. This underscores the brand's extensive global reach.
The Asia Pacific region, particularly China, stood out with remarkable year-over-year sales growth of 15.3%. China experienced a 22.3% increase. The success in international markets is a testament to SKX’s ability to cater to varied consumer tastes, seize on emerging trends and employ effective regional distribution strategies.
Focused Growth & Strategic Outlook
Looking ahead, Skechers aims to further enhance its DTC segment and international sales. Plans include launching stores, bolstering omnichannel capabilities and establishing a distribution center in China. For 2024, the company projects sales between $8.6 billion and $8.8 billion, suggesting a rise from the $8 billion reported in 2023, with EPS expected between $3.65 and $3.85.
Skechers plans to allocate $350-$400 million in capital expenditure, targeting areas such as store openings, omnichannel expansion and distribution infrastructure improvement. This strategic focus positions the company optimistically toward achieving its goal of $10 billion in annual sales by 2026, highlighting its commitment to growth and market leadership.
Stocks to Consider
A few better-ranked stocks are American Eagle Outfitters Inc. (AEO - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) and Deckers Outdoor Corporation (DECK - Free Report) .
American Eagle Outfitters is a specialty retailer of casual apparel, accessories and footwear. The company flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal-year earnings and sales indicates growth of 12.5% and 3.3% from the year-ago period’s reported figures. AEO has a trailing four-quarter average earnings surprise of 22.7%.
Abercrombie & Fitch is a specialty retailer of premium, high-quality casual apparel. The company currently sports a Zacks Rank #1. ANF has a trailing four-quarter average earnings surprise of 715.6%.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year earnings and sales indicates growth of 19.1% and 5.6% from the year-ago period’s reported figures.
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. The company sports a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Deckers’ current fiscal-year earnings and sales indicates growth of 38.7% and 15.8% from the year-ago period’s reported figures. DECK has a trailing four-quarter average earnings surprise of 32.1%.