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International Markets and Skechers (SKX): A Deep Dive for Investors
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Did you analyze how Skechers (SKX - Free Report) fared in its international operations for the quarter ending June 2024? Given the widespread global presence of this shoe company, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
While delving into SKX's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
The company's total revenue for the quarter stood at $2.16 billion, increasing 7.2% year over year. Now, let's delve into SKX's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
Decoding SKX's International Revenue Trends
During the quarter, Asia Pacific contributed $564.2 million in revenue, making up 26.2% of the total revenue. When compared to the consensus estimate of $620.98 million, this meant a surprise of -9.14%. Looking back, Asia Pacific contributed $604.5 million, or 26.9%, in the previous quarter, and $552.2 million, or 27.4%, in the same quarter of the previous year.
Europe, Middle East & Africa generated $492.5 million in revenues for the company in the last quarter, constituting 22.8% of the total. This represented a surprise of +9.02% compared to the $451.77 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe, Middle East & Africa accounted for $627.6 million (27.9%), and in the year-ago quarter, it contributed $433.3 million (21.5%) to the total revenue.
Prospective Revenues in International Markets
The current fiscal quarter's total revenue for Skechers, as projected by Wall Street analysts, is expected to reach $2.22 billion, reflecting an increase of 9.4% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Asia Pacific is anticipated to contribute 26.6% or $589.76 million and Europe, Middle East & Africa 23.4% or $519.43 million.
For the full year, the company is projected to achieve a total revenue of $8.86 billion, which signifies a rise of 10.8% from the last year. The share of this revenue from various regions is expected to be: Asia Pacific at 28.1% ($2.49 billion) and Europe, Middle East & Africa at 22.9% ($2.03 billion).
Concluding Remarks
Skechers' leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.
A Look at Skechers' Recent Stock Price Performance
Over the preceding four weeks, the stock's value has diminished by 6.4%, against a downturn of 0.2% in the Zacks S&P 500 composite. In parallel, the Zacks Consumer Discretionary sector, which counts Skechers among its entities, has depreciated by 1.7%. Over the past three months, the company's shares have seen a decline of 3.6% versus the S&P 500's 7.5% increase. The sector overall has witnessed an increase of 1.4% over the same period.
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International Markets and Skechers (SKX): A Deep Dive for Investors
Did you analyze how Skechers (SKX - Free Report) fared in its international operations for the quarter ending June 2024? Given the widespread global presence of this shoe company, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
While delving into SKX's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
The company's total revenue for the quarter stood at $2.16 billion, increasing 7.2% year over year. Now, let's delve into SKX's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
Decoding SKX's International Revenue Trends
During the quarter, Asia Pacific contributed $564.2 million in revenue, making up 26.2% of the total revenue. When compared to the consensus estimate of $620.98 million, this meant a surprise of -9.14%. Looking back, Asia Pacific contributed $604.5 million, or 26.9%, in the previous quarter, and $552.2 million, or 27.4%, in the same quarter of the previous year.
Europe, Middle East & Africa generated $492.5 million in revenues for the company in the last quarter, constituting 22.8% of the total. This represented a surprise of +9.02% compared to the $451.77 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe, Middle East & Africa accounted for $627.6 million (27.9%), and in the year-ago quarter, it contributed $433.3 million (21.5%) to the total revenue.
Prospective Revenues in International Markets
The current fiscal quarter's total revenue for Skechers, as projected by Wall Street analysts, is expected to reach $2.22 billion, reflecting an increase of 9.4% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Asia Pacific is anticipated to contribute 26.6% or $589.76 million and Europe, Middle East & Africa 23.4% or $519.43 million.
For the full year, the company is projected to achieve a total revenue of $8.86 billion, which signifies a rise of 10.8% from the last year. The share of this revenue from various regions is expected to be: Asia Pacific at 28.1% ($2.49 billion) and Europe, Middle East & Africa at 22.9% ($2.03 billion).
Concluding Remarks
Skechers' leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.
At the moment, Skechers has a Zacks Rank #1 (Strong Buy), signifying that it may outperform the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
A Look at Skechers' Recent Stock Price Performance
Over the preceding four weeks, the stock's value has diminished by 6.4%, against a downturn of 0.2% in the Zacks S&P 500 composite. In parallel, the Zacks Consumer Discretionary sector, which counts Skechers among its entities, has depreciated by 1.7%. Over the past three months, the company's shares have seen a decline of 3.6% versus the S&P 500's 7.5% increase. The sector overall has witnessed an increase of 1.4% over the same period.