As Skechers U.S.A., Inc. (SKX) gears up to unveil its first-quarter 2025 earnings results on April  24, after the market closes, investors are eager to gauge the company's performance. Known for its innovative footwear and strong brand presence, Skechers has been navigating through changing market dynamics and evolving consumer preferences.The company is expected to register an increase in the top line. The Zacks Consensus Estimate for revenues stands at $2.44 billion, which indicates a notable 8.3% improve ...

Group 1: Earnings Season Overview - The earnings season has commenced, with several consumer-facing companies, including Chipotle Mexican Grill (CMG), American Airlines (AAL), and Skechers (SKX), scheduled to report this week [1] - Guidance from these companies will be critical in assessing the state of the consumer and their post-earnings stock performance [1][8] Group 2: Chipotle Mexican Grill (CMG) - CMG shares have declined nearly 25% in 2025, underperforming the S&P 500, with negative EPS revisions leading to a Zacks Consensus EPS estimate of $0.28, down nearly 10% since January [2] - Year-over-year growth is projected at 3.7%, with sales expected to increase by 8.5% to $2.9 billion, reflecting a 5% downward revision [3] - CMG has consistently posted double-digit percentage year-over-year sales growth, with the latest period showing sales of $2.8 billion, a 13% improvement [5] Group 3: American Airlines (AAL) - AAL's guidance will be a significant factor in its earnings release, especially following Delta Air Lines' (DAL) recent results, which indicated a cautious outlook due to economic uncertainty [10] - Analysts have reduced their EPS expectations for AAL, reflecting a broader theme of uncertainty that is likely to influence the stock's movement post-earnings [11][13] Group 4: Skechers (SKX) - SKX shares have dropped over 30% in 2025, following a strong multi-year performance, with analysts cutting EPS expectations by 23% to a current estimate of $1.18 [14][16] - Revenue expectations for SKX remain stable, with quarterly sales projected at $2.4 billion, while margins will be a key focus in the earnings report [16][19] - The stock has seen a decline of approximately 9% over the past two years, suggesting that much of the negative sentiment may already be reflected in the share price [19]

Analysts on Wall Street project that Skechers (SKX) will announce quarterly earnings of $1.18 per share in its forthcoming report, representing a decline of 11.3% year over year. Revenues are projected to reach $2.44 billion, increasing 8.3% from the same quarter last year.The current level reflects a downward revision of 3.6% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over ...

Company Performance - Skechers (SKX) closed at $47.63, marking a +1.97% move from the prior day, outperforming the S&P 500's gain of 0.13% [1] - Over the past month, Skechers shares have lost 18.72%, significantly underperforming the Consumer Discretionary sector's loss of 7.24% and the S&P 500's loss of 6.3% [1] Upcoming Earnings - The upcoming earnings release is scheduled for April 24, 2025, with an expected EPS of $1.18, indicating an 11.28% decline compared to the same quarter last year [2] - Revenue is predicted to be $2.44 billion, reflecting an 8.31% increase compared to the same quarter of the previous year [2] Full Year Estimates - For the full year, earnings are projected at $4.42 per share and revenue at $9.72 billion, showing changes of +6.25% and +8.42% respectively from the preceding year [3] - Recent changes to analyst estimates indicate a positive outlook for the company's business and profitability [3] Valuation Metrics - Skechers is currently trading at a Forward P/E ratio of 10.57, which is a premium compared to its industry's Forward P/E of 9.54 [6] - The company has a PEG ratio of 0.75, lower than the average PEG ratio of 0.83 for the Shoes and Retail Apparel industry [7] Industry Context - The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector and currently holds a Zacks Industry Rank of 226, placing it in the bottom 9% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Skechers despite higher revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - Skechers is expected to report quarterly earnings of $1.18 per share, reflecting an 11.3% decrease year-over-year [3]. - Revenue projections stand at $2.44 billion, indicating an 8.3% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 3.62% over the last 30 days, indicating a bearish sentiment among analysts [4]. - The Most Accurate Estimate for Skechers is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.54% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive reading is a strong predictor of an earnings beat, particularly when combined with a favorable Zacks Rank [8]. - Skechers currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [11]. Historical Performance - In the last reported quarter, Skechers was expected to earn $0.74 per share but only achieved $0.65, resulting in a surprise of -12.16% [12]. - Over the past four quarters, Skechers has beaten consensus EPS estimates twice [13]. Conclusion - Skechers does not appear to be a compelling candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [16].

Core Insights - Skechers is refocusing its strategy in China, emphasizing investments in first- and second-tier cities while maintaining a cautious approach in lower-tier markets [1][4] - The company aims to increase its store count in China to 6,500 by 2026, targeting a revenue goal of 30 billion yuan [3] - Skechers reported a record revenue of $8.969 billion in 2024, with a year-on-year growth of 12.11%, making it the fourth-largest sports brand globally [3] Channel Strategy - Since entering the Chinese market in 2007, Skechers has opened nearly 3,500 offline stores and established an online and new retail network [2] - The company plans to open flagship stores in key business districts of first- and second-tier cities in the second half of this year [4] - Skechers is optimizing its channel strategy by focusing on product diversification and not overly relying on a single product [3][5] Product Development - Skechers is differentiating itself through its "comfort technology," which includes various product lines aimed at different consumer segments [5][6] - The company showcased several new products for 2025, including the GO WALK 8 shoes designed to appeal to middle-aged and elderly consumers [5] - The brand is exploring product diversification based on comfort technology, aligning with the growing trend of light sports concepts [6][7] Consumer Focus - Skechers is targeting a family-oriented consumer profile, aiming to attract mothers, children, and elderly family members for sustainable growth [5] - The company is adapting its product design to meet the needs of a broader age range, emphasizing functionality and versatility for daily commuting [7]

In the latest market close, Skechers (SKX) reached $49.47, with a +0.24% movement compared to the previous day. The stock lagged the S&P 500's daily gain of 1.81%. Meanwhile, the Dow gained 1.56%, and the Nasdaq, a tech-heavy index, added 2.06%.Coming into today, shares of the shoe company had lost 11.83% in the past month. In that same time, the Consumer Discretionary sector lost 7.73%, while the S&P 500 lost 6.14%.Investors will be eagerly watching for the performance of Skechers in its upcoming earnings ...

Skechers U.S.A., Inc. (SKX) stands out as a compelling value play within the Zacks Shoes and Retail Apparel industry. It is trading at a forward 12-month price-to-sales ratio of 0.76, down from the industry and the Consumer Discretionary sector’s average of 1.52 and 1.68, respectively. This undervaluation highlights its potential for investors seeking attractive entry points. Moreover, Skechers’ Value Score of A underscores its value appeal. In the past month, the SKX stock has lost 9.1%. However, the stock ...

Skechers (SKX) shares soared 11.2% in the last trading session to close at $50.58. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 18.3% loss over the past four weeks.U.S. stocks staged their biggest rally yesterday, after President Donald Trump announced a 90-day pause on reciprocal tariffs for all nations except China. Skechers continues to demonstrate strong momentum through its multi-brand strategy, innovative comfort-based p ...

Core Viewpoint - The article discusses the impact of the US-China tariff war on the fashion industry, highlighting the need for companies to adapt their supply chains and production strategies to mitigate risks and maintain competitiveness in a changing landscape [4][16]. Supply Chain Dynamics - The textile industry is experiencing a migration of production from China to countries like Vietnam, Cambodia, and Bangladesh, driven by rising labor costs and regulatory changes in China [5][6]. - The COVID-19 pandemic accelerated this shift, prompting brands to diversify their supply chains and avoid over-reliance on a single country [6][16]. - The concept of "China +1" has emerged, where companies maintain production in China while also establishing additional bases in other countries to enhance resilience [6][7]. Nearshoring Trends - Many companies are exploring "nearshoring," which involves relocating production closer to key consumer markets to reduce shipping times and costs [7][8]. - European luxury brands, such as Hermès and LVMH, are increasingly investing in local production to enhance brand image and maintain product quality [8]. Case Studies: Adidas and Zara - Adidas is shifting towards a "market-oriented supply chain regionalization," focusing on local production in China and other non-sensitive regions to mitigate tariff risks [10][12]. - Zara's parent company, Inditex, maintains a high level of in-house production in Europe, allowing for rapid response to market demands and higher profit margins compared to competitors [13][14]. Strategic Shifts in Fashion Retail - The fashion retail industry is transitioning from a focus on absolute low costs to building supply chain resilience, balancing cost, speed, and risk [14][16]. - Both Adidas and Zara exemplify different approaches to navigating the challenges posed by tariffs and changing consumer preferences, with Adidas focusing on regionalization and Zara on centralized production [14][15].