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 ...

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].

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].

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Skechers (SKX) .Skechers currently has an average brokerage recommendation ...

Sales and Financial Performance - Skechers reported a significant growth in net sales, with a focus on expanding its product offerings and consumer base[18]. - Sales increased 12.1% to $8.97 billion for the year ended December 31, 2024, setting a new annual record[128]. - Sales for the year ended December 31, 2024, reached $8,969,351, a 12.1% increase from $8,000,342 in 2023[190]. - Net earnings attributable to Skechers U.S.A., Inc. increased by $93.7 million, or 17.2%, to $639.5 million[130]. - Net earnings for the year ended December 31, 2024, were $729.6 million, an increase of 12.3% from $649.9 million in 2023[196]. - Gross profit rose by $615.0 million, or 14.8%, to $4.77 billion, with a gross margin increase of 120 basis points to 53.2% due to lower costs per unit[132]. - Operating expenses increased by $495.6 million, or 14.7%, to $3.86 billion, with selling expenses up 18.3% and general and administrative expenses up 13.8%[133]. - Basic net earnings per share rose to $4.21, a 19.3% increase from $3.53 in the prior year[190]. - Total assets increased to $8,455,758, up from $7,547,351, representing a growth of 12.0% year-over-year[188]. - Cash and cash equivalents were $1,116.5 million, with 92.0% held outside the U.S.[144]. Market Presence and Expansion - The company operates through two segments: Wholesale and Direct-to-Consumer, with growth expected from new partners and expanded shelf space[19][20]. - Skechers aims to expand its market presence through new product introductions and leveraging third-party digital marketplaces[20]. - As of December 31, 2024, the company had 5,296 Skechers-branded retail stores in 122 countries[104]. - The company plans to continue developing new comfort innovations and expanding its distribution infrastructure to support growth[129]. - The company aims to implement market strategies to broaden its global reach and attract new partners and consumers[129]. Employee and Corporate Responsibility - As of December 31, 2024, Skechers employed approximately 20,100 individuals globally, with about 10,100 full-time and 10,000 part-time employees[35]. - Skechers is committed to corporate responsibility, investing in environmental, social, and governance (ESG) initiatives to improve community and environmental health[39]. - In 2024, Skechers donated $1.6 million to Petco Love Foundation and $2.0 million to the Skechers Foundation, supporting community and youth well-being initiatives[43]. - The company has initiated a new employee stock purchase plan, which is expected to enhance employee engagement and retention[194]. Risks and Challenges - The company faces intense competition in the footwear industry, which may lead to price reductions, cost increases, and reduced profit margins if not managed effectively[49]. - Skechers' international sales are primarily derived from manufacturing in China and Vietnam, exposing the company to risks such as political instability and labor cost increases[57]. - Global economic conditions and conflicts may adversely affect the company's ability to sell products, potentially impacting financial results[63]. - A global financial crisis could tighten credit markets and lead to higher inflation, adversely affecting customer demand and distribution channels[64]. - Natural disasters and climate change could disrupt operations and increase costs, affecting revenue and business continuity[66]. - Foreign currency exchange rate fluctuations can impact sales and profitability, complicating financial comparisons across periods[68]. - Changes in tax laws and trade policies may impose additional costs and affect competitive pricing, impacting sales and operations[70][72]. - Compliance with labor and trade laws by contract manufacturers and suppliers is critical; violations could harm the company's reputation and operations[74]. - Unanticipated litigation could divert management's attention and incur substantial legal fees, adversely affecting financial condition[76]. Operational and Logistical Considerations - Skechers' logistics and distribution systems are critical for product delivery, with potential disruptions from natural disasters or system failures impacting operations[61]. - The company has invested in industry-standard security technology to protect personal information, but any compromise could result in legal liabilities and damage to brand reputation[80]. - The company relies heavily on IT systems for e-commerce and customer data management, and disruptions could negatively impact business operations[84]. - A multi-year Enterprise Resource Planning (ERP) implementation is underway, requiring significant investment and carrying risks of operational disruptions and cost overruns[85]. Marketing and Brand Strategy - The company has a diverse marketing strategy, utilizing celebrities and athletes to promote its brand, including partnerships with figures like Harry Kane and Joel Embiid[28][27]. - Skechers focuses on innovative comfort technologies in its footwear, such as Skechers Hands Free Slip-ins® and Skechers Arch Fit®[23]. - The company emphasizes sustainability, with several distribution centers designed for LEED certification, including a LEED Gold certified facility in Southern California[40]. - The company emphasizes environmentally sustainable practices, including the introduction of a collection utilizing recycled materials[41]. Financial Management and Investments - The company has announced a new share repurchase program allowing for the purchase of up to $1.0 billion in shares, with $789.9 million remaining available[152]. - Capital expenditures for 2024 were $416.8 million, with expectations for 2025 to be between $600 million and $700 million[150]. - The company recorded a cumulative foreign currency translation loss of $97.8 million and a gain of $11.5 million for the years ended December 31, 2024 and 2023, respectively[172]. - Total current liabilities increased to $2,256,484, up from $1,660,867, marking a 35.8% rise[188]. - Inventory levels increased to $1,919,386, compared to $1,525,409 in 2023, representing a 25.8% increase[188].