Can Skechers’ (SKX) Solid Quarter Carry Over The Rest of The Year?


Shares of Skechers USA Inc (NYSE:SKX) are trading significantly higher this morning after the company reported an outstanding fourth quarter. While earings per share matched the $0.20 that analysts had expected, the company really did shine on the revenue front. Skechers USA Inc (NYSE:SKX) reported revenue for the quarter of $722.7 million, significantly higher than the $648 million that analysts were looking for.

“The fourth quarter growth was across our key product lines for men, women and kids, which led to high single-digit gains in our domestic wholesale business, and double-digit increases in our international wholesale and Company-owned retail stores businesses,” explained David Weinberg, Skechers CEO and CFO. “Also in the fourth quarter, our international business grew to 41 percent of our total sales, bringing it closer to our goal of 50 percent within the next two to three years.”

Following today’s report, investors are now asking themselves if Skechers USA Inc (NYSE:SKX) can carry this success into the new year. While it will be tough from a revenue perspective, especially since they are coming off of the holiday quarter, it appears as if the company has set themselves on a trajectory for continued success.

The stock is currently trading higher by 8.47% or $2.3 following the positive news, hitting $29.47 per share at the time of us publishing this article. About 2.59M shares traded hands. SKX has declined 28.64% since July 8, 2015 and is downtrending. It has underperformed the S&P500 by 19.78%.

From a total of 9 analysts covering Skechers Usa Inc. (NYSE:SKX) stock, 8 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 89% of the ratings are positive. The highest target price is $185 while the lowest target price is $2.50. The mean of all analyst targets is $86.19 which is 192.47% above today’s ($29.47) stock price. Skechers Usa Inc. was the topic of 16 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. B. Riley & Co maintained shares on October 23 with a “Buy” rating. Sterne Agee CRT maintained shares with a”Buy” rating and a $185 target share price in their report from a September 6. Monness Crespi & Hardt maintained SKX stock in a recent report from October 23 with a “Buy” rating. Vetr downgraded the rating on August 28. Vetr has a “Buy” rating and a $144.39 price target on shares. Finally, Argus Research initiated the stock with a “Buy” rating in a report they issued on an October 13.

The institutional sentiment increased to 1.04 in Q2 2015. It’s up 0.26, from 0.78 in 2015Q2. The ratio is positive, as 39 funds sold all their Skechers USA Inc shares they owned while 127 reduced their positions. 63 funds bought stakes while 109 increased their total positions. Institutions now own 32.84 million shares which is 12.73% less than the previous share count of 37.63 million in 2015Q2.

Caldwell & Orkin Inc holds 3.16% of its total portfolio in Skechers USA Inc, equating to 37,110 shares. Scholtz & Company Llc owns 18,965 shares representing 2.72% of their total US portfolio. Moreover, Navellier & Associates Inc has 2.71% of their total portfolio invested in the company, equating to 201,023 shares. The Illinois-based Oberweis Asset Management Inc has a total of 2.53% of their portfolio invested in the stock. Atika Capital Management Llc, a New York-based fund reported 32,000 shares owned.

Since March 12, 2015, the stock had 0 buys, and 2 sales for a total of $74.23 million in net activity. Greenberg Robert sold 200,000 shares worth $28.29M. Rappaport Richard sold 1,000 shares worth $112,000. Erlich Morton D sold 500 shares worth $56,130. Greenberg Michael sold 126,868 shares worth $13.85M. The insider Nason Mark A sold 9,000 shares worth $937,750.

Skechers U.Skechers U.S.A., Inc. is a designer and marketer of Skechers-branded lifestyle footwear for men, women and children, and performance footwear for men and women under the Skechers GO brand name. The company has a market cap of $4.65 billion. The Company’s brands are sold through department and specialty stores, athletic and independent retailers, boutiques and internet retailers. It has 20.23 P/E ratio. In addition to wholesale distribution, its footwear is available at its e-commerce site and its own retail stores.