Consumer Strength Fuels Record Results for These 2 Companies

Core Insights - Consumer strength has led to robust quarterly results for Skechers and Deckers Outdoors, with both companies exceeding Zacks Consensus EPS estimates throughout 2024 [1] - Nike has faced significant pressure on its stock, down 30% year-to-date, following challenges and a revised outlook for FY25 [5][24] - Skechers reported record quarterly sales with a 17% increase in direct-to-consumer sales [7] Company Performance - Skechers' earnings expectations have remained stable, with an expected EPS of $0.92, indicating a 6% decline year-over-year, while revenue expectations have increased by 0.5% to $2.2 billion, reflecting a 10% year-over-year growth [14] - Deckers Outdoors has seen a notable increase in its Zacks Consensus EPS estimate, up 22% over recent months, suggesting a 46% year-over-year climb [8] - Nike is recalibrating its product portfolio in response to shifting consumer preferences, with a focus on classic footwear franchises [6][24] Market Trends - Both Skechers and Deckers have benefited from a resilient consumer base, leading to positive earnings estimate revisions [21] - Nike's digital business has grown at an approximately 26% CAGR since Fiscal 2019, although it missed Q4 plans due to softer traffic and higher promotions [24]