We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why Skechers (SKX) is a Promising Investment Bet Now
Read MoreHide Full Article
Skechers U.S.A., Inc. (SKX - Free Report) appears promising on the back of robust business strategies. The company remains focused on boosting its omnichannel capabilities by expanding its direct-to-consumer (DTC) business and enhancing its international foothold.
SKX is focused on introducing innovative and comfortable technology products, building multi-platform marketing campaigns and launching more e-commerce sites around the world. The company has been gaining from growth in its domestic and international channels for a while now.
Let’s delve deeper.
Detailing Strategies
Skechers has been making strategic investments to improve its worldwide infrastructure, primarily e-commerce platforms and distribution centers. The company is focused on designing and developing new products. Continued global demand for its comfort technology footwear is steadily driving results.
The company has been directing resources to enhance its digital capabilities, which includes augmenting website features, mobile applications and loyalty programs. It has updated its point-of-sale systems to better engage with customers, both offline and online. Initiatives such as “Buy Online, Pick-Up in Store” and “Buy Online, Pickup at Curbside” are worth mentioning. Moreover, the company has been enhancing its distribution facilities and supply-chain production capabilities.
Image Source: Zacks Investment Research
Overall, Skechers is focused on expanding its DTC business to boost sales and enhance its consumer base. During the first quarter of 2023, the company launched the Skechers Plus loyalty program in Canada, the United Kingdom, Germany and Spain, and anticipates rolling out the program to more countries. The company is in the process of updating its present e-commerce platform in Chile, which is among the most productive international sites and has plans to launch more e-commerce sites internationally.
Management also remains focused on store expansion. In the first quarter, management opened 56 company-owned stores while closing 25 stores. Store openings consisted of 18 in China, 13 in the United States, six each in Thailand and Vietnam and three each in Germany and Israel. It expects to open between 125 stores and 140 stores worldwide over the rest of the year.
Skechers offers a diversified portfolio of brands that includes a wide range of fashion, athletic, non-athletic and work footwear at compelling prices. The company is focused on comfort-based footwear and apparel products as consumers are embracing a relaxed lifestyle and incorporating the same into their work and weekend wear. The company has also been effectively managing inventory. All such efforts highlight SKX’s progress as an omnichannel retailer.
Skechers’ international business remains a significant sales growth driver for the company. In first-quarter 2023, international sales increased 21.1% year over year, accounting for 63% of the overall sales for the quarter. During the same quarter, Skechers’ DTC sales grew 24.5% year over year to $707.3 million. DTC sales growth included increases of 25% in domestic DTC sales and 24% in international DTC sales. DTC unit volume rose 27% year over year.
Bottom Line
To wrap up, Skechers is likely to continue performing well on the back of such sturdy endeavors. This footwear leader has appreciated 38% in the past year, outperforming the industry’s 8.5% growth.
Analysts seem optimistic about this Zacks Rank #1 (Strong Buy) company. The Zacks Consensus Estimate for Skechers’ 2023 sales and earnings per share (EPS) is pegged at $8.02 billion and $3.13 each, suggesting respective growth of 7.7% and 31.5% from the year-ago reported figures. For 2024, the consensus estimate for sales and EPS stands at $8.84 billion and $3.78 each, indicating corresponding increases of 10.2% and 20.6% from the prior-year reported numbers.
RCL has a trailing four-quarter earnings surprise of 26.4%, on average. The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates increases of 47.9% and 158.3%, respectively, from the year-ago period’s reported levels.
Crocs, which offers casual lifestyle footwear and accessories, presently carries a Zacks Rank #2 (Buy). The expected EPS growth rate for three to five years is 15%.
The Zacks Consensus Estimate for Crocs’ current financial-year sales and EPS suggests growth of 13.1% and 2.8% from the year-ago period’s reported figure. CROX has a trailing four-quarter earnings surprise of 21.8%, on average.
lululemon athletica is a yoga-inspired athletic apparel company. LULU carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS suggests growth of 16.7% and 18%, respectively, from the year-ago corresponding figures. LULU has a trailing four-quarter earnings surprise of 9.9%, on average.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why Skechers (SKX) is a Promising Investment Bet Now
Skechers U.S.A., Inc. (SKX - Free Report) appears promising on the back of robust business strategies. The company remains focused on boosting its omnichannel capabilities by expanding its direct-to-consumer (DTC) business and enhancing its international foothold.
SKX is focused on introducing innovative and comfortable technology products, building multi-platform marketing campaigns and launching more e-commerce sites around the world. The company has been gaining from growth in its domestic and international channels for a while now.
Let’s delve deeper.
Detailing Strategies
Skechers has been making strategic investments to improve its worldwide infrastructure, primarily e-commerce platforms and distribution centers. The company is focused on designing and developing new products. Continued global demand for its comfort technology footwear is steadily driving results.
The company has been directing resources to enhance its digital capabilities, which includes augmenting website features, mobile applications and loyalty programs. It has updated its point-of-sale systems to better engage with customers, both offline and online. Initiatives such as “Buy Online, Pick-Up in Store” and “Buy Online, Pickup at Curbside” are worth mentioning. Moreover, the company has been enhancing its distribution facilities and supply-chain production capabilities.
Image Source: Zacks Investment Research
Overall, Skechers is focused on expanding its DTC business to boost sales and enhance its consumer base. During the first quarter of 2023, the company launched the Skechers Plus loyalty program in Canada, the United Kingdom, Germany and Spain, and anticipates rolling out the program to more countries. The company is in the process of updating its present e-commerce platform in Chile, which is among the most productive international sites and has plans to launch more e-commerce sites internationally.
Management also remains focused on store expansion. In the first quarter, management opened 56 company-owned stores while closing 25 stores. Store openings consisted of 18 in China, 13 in the United States, six each in Thailand and Vietnam and three each in Germany and Israel. It expects to open between 125 stores and 140 stores worldwide over the rest of the year.
Skechers offers a diversified portfolio of brands that includes a wide range of fashion, athletic, non-athletic and work footwear at compelling prices. The company is focused on comfort-based footwear and apparel products as consumers are embracing a relaxed lifestyle and incorporating the same into their work and weekend wear. The company has also been effectively managing inventory. All such efforts highlight SKX’s progress as an omnichannel retailer.
Skechers’ international business remains a significant sales growth driver for the company. In first-quarter 2023, international sales increased 21.1% year over year, accounting for 63% of the overall sales for the quarter. During the same quarter, Skechers’ DTC sales grew 24.5% year over year to $707.3 million. DTC sales growth included increases of 25% in domestic DTC sales and 24% in international DTC sales. DTC unit volume rose 27% year over year.
Bottom Line
To wrap up, Skechers is likely to continue performing well on the back of such sturdy endeavors. This footwear leader has appreciated 38% in the past year, outperforming the industry’s 8.5% growth.
Analysts seem optimistic about this Zacks Rank #1 (Strong Buy) company. The Zacks Consensus Estimate for Skechers’ 2023 sales and earnings per share (EPS) is pegged at $8.02 billion and $3.13 each, suggesting respective growth of 7.7% and 31.5% from the year-ago reported figures. For 2024, the consensus estimate for sales and EPS stands at $8.84 billion and $3.78 each, indicating corresponding increases of 10.2% and 20.6% from the prior-year reported numbers.
Eye These Other Solid Picks
Some other top-ranked companies are Royal Caribbean (RCL - Free Report) , Crocs (CROX - Free Report) and lululemon athletica (LULU - Free Report) .
Royal Caribbean sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
RCL has a trailing four-quarter earnings surprise of 26.4%, on average. The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates increases of 47.9% and 158.3%, respectively, from the year-ago period’s reported levels.
Crocs, which offers casual lifestyle footwear and accessories, presently carries a Zacks Rank #2 (Buy). The expected EPS growth rate for three to five years is 15%.
The Zacks Consensus Estimate for Crocs’ current financial-year sales and EPS suggests growth of 13.1% and 2.8% from the year-ago period’s reported figure. CROX has a trailing four-quarter earnings surprise of 21.8%, on average.
lululemon athletica is a yoga-inspired athletic apparel company. LULU carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS suggests growth of 16.7% and 18%, respectively, from the year-ago corresponding figures. LULU has a trailing four-quarter earnings surprise of 9.9%, on average.