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Skechers (SKX) Reliance on International Sales: What Investors Need to Know
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Have you evaluated the performance of Skechers' (SKX - Free Report) international operations during the quarter that concluded in March 2024? Considering the extensive worldwide presence of this shoe company, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.
While analyzing SKX's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The recent quarter saw the company's total revenue reaching $2.25 billion, marking an improvement of 12.5% from the prior-year quarter. Next, we'll examine the breakdown of SKX's revenue from abroad to comprehend the significance of its international presence.
Trends in SKX's Revenue from International Markets
Of the total revenue, $627.6 million came from Europe, Middle East & Africa during the last fiscal quarter, accounting for 27.9%. This represented a surprise of +15.94% as analysts had expected the region to contribute $541.31 million to the total revenue. In comparison, the region contributed $383.5 million, or 19.6%, and $534.5 million, or 26.7%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Asia Pacific contributed $604.5 million in revenue, making up 26.9% of the total revenue. When compared to the consensus estimate of $594.12 million, this meant a surprise of +1.75%. Looking back, Asia Pacific contributed $622 million, or 31.7%, in the previous quarter, and $521.5 million, or 26.1%, in the same quarter of the previous year.
International Revenue Predictions
Wall Street analysts expect Skechers to report $2.19 billion in total revenue for the current fiscal quarter, indicating an increase of 8.9% from the year-ago quarter. Europe, Middle East & Africa and Asia Pacific are expected to contribute 20.3% ($445.34 million) and 27.6% ($604.26 million) to the total revenue, respectively.
For the full year, the company is projected to achieve a total revenue of $8.82 billion, which signifies a rise of 10.2% from the last year. The share of this revenue from various regions is expected to be: Europe, Middle East & Africa at 21.8% ($1.92 billion) and Asia Pacific at 28.4% ($2.5 billion).
Closing Remarks
Skechers' reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
A Review of Skechers' Recent Stock Market Performance
Over the past month, the stock has seen an increase of 6.8% in its value, whereas the Zacks S&P 500 composite has posted a decrease of 2%. The Zacks Consumer Discretionary sector, Skechers' industry group, has descended 6.2% over the identical span. In the past three months, there's been an increase of 14.7% in the company's stock price, against a rise of 4.6% in the S&P 500 index. The broader sector has declined by 5.6% during this interval.
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Skechers (SKX) Reliance on International Sales: What Investors Need to Know
Have you evaluated the performance of Skechers' (SKX - Free Report) international operations during the quarter that concluded in March 2024? Considering the extensive worldwide presence of this shoe company, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.
While analyzing SKX's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The recent quarter saw the company's total revenue reaching $2.25 billion, marking an improvement of 12.5% from the prior-year quarter. Next, we'll examine the breakdown of SKX's revenue from abroad to comprehend the significance of its international presence.
Trends in SKX's Revenue from International Markets
Of the total revenue, $627.6 million came from Europe, Middle East & Africa during the last fiscal quarter, accounting for 27.9%. This represented a surprise of +15.94% as analysts had expected the region to contribute $541.31 million to the total revenue. In comparison, the region contributed $383.5 million, or 19.6%, and $534.5 million, or 26.7%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Asia Pacific contributed $604.5 million in revenue, making up 26.9% of the total revenue. When compared to the consensus estimate of $594.12 million, this meant a surprise of +1.75%. Looking back, Asia Pacific contributed $622 million, or 31.7%, in the previous quarter, and $521.5 million, or 26.1%, in the same quarter of the previous year.
International Revenue Predictions
Wall Street analysts expect Skechers to report $2.19 billion in total revenue for the current fiscal quarter, indicating an increase of 8.9% from the year-ago quarter. Europe, Middle East & Africa and Asia Pacific are expected to contribute 20.3% ($445.34 million) and 27.6% ($604.26 million) to the total revenue, respectively.
For the full year, the company is projected to achieve a total revenue of $8.82 billion, which signifies a rise of 10.2% from the last year. The share of this revenue from various regions is expected to be: Europe, Middle East & Africa at 21.8% ($1.92 billion) and Asia Pacific at 28.4% ($2.5 billion).
Closing Remarks
Skechers' reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
Currently, Skechers holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
A Review of Skechers' Recent Stock Market Performance
Over the past month, the stock has seen an increase of 6.8% in its value, whereas the Zacks S&P 500 composite has posted a decrease of 2%. The Zacks Consumer Discretionary sector, Skechers' industry group, has descended 6.2% over the identical span. In the past three months, there's been an increase of 14.7% in the company's stock price, against a rise of 4.6% in the S&P 500 index. The broader sector has declined by 5.6% during this interval.