SKX Stock Trades 10% Below 52-Week High: Bullish Signal for Investors?

Core Insights - Skechers aims for $10 billion in annual sales by 2026, planning capital expenditures of $375-$400 million to support store openings, omnichannel capabilities, and distribution infrastructure [2][20]. Financial Performance - Skechers' shares are currently trading 9.8% below their 52-week high of $75.09, with an 8.1% gain over the past year, outperforming the Zacks Shoes and Retail Apparel industry's 22.9% decline [6]. - The company revised its fiscal 2024 sales forecast to $8.93-$8.98 billion, up from a previous estimate of $8.88-$8.98 billion, indicating growth from $8 billion in fiscal 2023 [12][21]. - Earnings per share (EPS) guidance has been increased to $4.20-$4.25 from $4.08-$4.18, reflecting a rise from last year's EPS of $3.49 [21]. Sales Growth - The Direct-to-Consumer (DTC) segment saw a 9.6% year-over-year sales increase to $931.7 million, with international DTC sales growing 14.4% and domestic sales increasing by 3.7% [9]. - The wholesale segment reported a 20.6% year-over-year sales increase to $1.42 billion, driven by a 26% rise in domestic sales and an 18% increase in international sales [10]. Retail Expansion - Skechers operates 5,332 branded stores globally, including 1,743 company-owned locations, and plans to open 55-60 additional stores in the fourth quarter [11]. - International revenues rose 16.4% year over year, accounting for 61% of total revenues, with EMEA leading at a 30.2% increase [26]. Strategic Initiatives - The company is adopting a multi-brand strategy to diversify its portfolio, focusing on comfort-oriented footwear and enhancing its infrastructure for e-commerce and retail operations [18][22]. - Ongoing investments in logistics and retailer relationships are expected to drive growth in the wholesale segment throughout fiscal 2024 [10].