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Skechers Stomps Out A Great Quarter, But Market Cycles Point To A Correction

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  • Skechers USA Inc (NYSE: SKX) soared 15 percent on Friday morning, after the footwear company posted mixed earnings and guidance that beat Wall Street expectations.
  • However, its market cycle point to a near term correction followed by an upside opportunity.

Skechers Stock Chart With Weekly Bars

The footwear company reported earnings per share of $0.31 versus $0.23 expected, and total revenue of $10.8 versus $10.1 billion expected. For the current quarter, the company forecast earnings of $0.70-0.75 versus the $0.69 average analyst estimate.

COO David Weinberg explained that,”For the quarter, our growth was fueled by double-digit sales increases in each of our international businesses.”

SKX Cycle Analysis: Our view combines how technical analysis intersects with the stock’s market cycles. For Skechers, we can see the stock is still in the rising phase of its current cycle. However, it has now moved into an important resistance zone. We see the expected top at around $35, with a better buying opportunity manifesting after a downside correction into May.

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The Street Debates Skechers Q4: Sustainable Momentum Or One-Off Quarter?

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The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

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