Skechers USA (NYSE:SKX) Stock, Quote.Headers.trade-ideas

Skechers USA

Skechers USA Inc is a lifestyle footwear company under the Skechers GO brand name. Products offered include various styles of women's shoes, men's shoes, girl's shoes, boy's shoes, performance shoes, and work shoes. Allied products offered are apparel, bags, eyewear, toys, and more. Its products are available for sale at department and specialty stores, athletic and independent retailers, boutiques, and internet retailers. The company's operating segments includes Wholesale and Direct-to-Consumer. It generates maximum revenue from the Wholesale segment.

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Benzinga examined the prospects for many investors’ favorite stocks over the last week — here’s a look at some of our top stories.



The three major averages posted weekly gains, with the S&amp;P 500 rising 1.36% and up over 19% for 2024, while the Dow gained 1.62% and the Nasdaq advanced 1.49%. 

Benzinga Bulls And Bears: Apple, Palantir, Walmart, Home Depot — And An Analyst Predicts Dogecoin Will Outperform Bitcoin In 2025

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The Fed delivered in line with expectations, sending stocks to record territory, but not all have become comfortable with the outlook.

Brace For Stagflation After Fed&#39;s Benevolence, Warns Analyst, Raising 5 Corporate Red Flags: &#39;Inflation Is Transitory Mistake All Over Again&#39;

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When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock&#39;s price, but are they really important?

Brokers Suggest Investing in Skechers: Read This Before Placing a Bet

Skechers USA Inc

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Benzinga examined the prospects for<a href="http://www.benzinga.com/trading-ideas"> many investors&#8217; favorite stocks</a> over the last week — here&#8217;s a look at some of our top stories.
The three major averages posted weekly gains, with the S&amp;P 500 rising 1.36% and up over 19% for 2024, while the Dow gained 1.62% and the Nasdaq advanced 1.49%. 
The Federal Reserve cut interest rates by 50 basis points in September, surprising many economists who expected a smaller 25-basis-point reduction. 
Fed Chair Jerome Powell emphasized the need to act early to support the labor market, noting that strong employment requires proactive measures. While hinting at potential future cuts, Powell framed this move as a recalibration rather than a broader policy shift, <a href="https://www.benzinga.com/markets/equities/24/09/40965372/fed-delivers-large-interest-rate-cut-in-bid-to-sustain-labor-market-stocks-gold-set-new-record-h">stressing data-driven decision-making.</a>
Benzinga provides daily reports on the stocks most popular with investors. Here are a few of this past week&#8217;s most bullish and bearish posts that are worth another look.
<h3 class="wp-block-heading">The Bulls</h3>
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40892076/palantir-key-enabler-of-clients-businesses-says-bullish-analyst-as-ceo-alex-karp-to">&#8220;Palantir &#8216;Key Enabler&#8217; Of Clients&#8217; Businesses, Says Bullish Analyst, As CEO Alex Karp Touts 10-Fold Growth From Current Levels,&#8221;</a> by <a href="https://www.benzinga.com/author/shanthi-rexaline">Shanthi Rexaline</a>, highlights Palantir Technologies Inc&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NYSE">PLTR</a>) potential tenfold growth as CEO Alex Karp emphasizes the company&#8217;s role in accelerating client success, with BofA Securities maintaining a bullish outlook and a $50 price target.
<a href="https://www.benzinga.com/markets/equities/24/09/40906505/walmart-division-sams-club-raises-wages-for-hourly-associates-a-strategic-move-to-stay-ahead-in-">&#8220;Walmart Division Sam&#8217;s Club Raises Wages For Hourly Associates: A Strategic Move To Stay Ahead In Retail,&#8221;</a> by <a href="https://www.benzinga.com/author/anusuya-lahiri-0">Anusuya Lahiri</a>, details Walmart Inc.&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) Sam&#8217;s Club wage increase for nearly 100,000 frontline workers, with hourly pay rising 3%-6% as part of a strategy to enhance worker retention and performance.
"<a href="https://www.benzinga.com/markets/cryptocurrency/24/09/40921872/dogecoin-will-outperform-bitcoin-in-2025-vows-trader-heres-what-the-follower-effect-means">Dogecoin Will Outperform Bitcoin In 2025, Vows Trader: Here&#8217;s What The &#8216;Follower Effect&#8217; Means,&#8221;</a> by <a href="https://www.benzinga.com/author/khyathi-dalal">Khyathi Dalal</a>, shares a crypto trader&#8217;s belief that Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>) will outperform Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) in 2025, benefiting from its rapid growth and leveraging Bitcoin's trajectory via the &#8220;follower effect.&#8221;
For additional bullish calls of the past week, check out the following:
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40898388/qualcomm-analyst-sees-opportunity-in-regaining-share-with-samsung-after-apple-reven">Qualcomm Analyst Sees Opportunity In &#8216;Regaining Share With Samsung&#8217; After Apple Revenue Squeeze</a>
<a href="https://www.benzinga.com/markets/cryptocurrency/24/09/40930553/microstrategy-2x-leveraged-inverse-etfs-are-here-offer-unparalleled-access-to-microstrateg">MicroStrategy 2X Leveraged, Inverse ETFs Are Here, Offer &#8216;Unparalleled Access To MicroStrategy&#8217;s Bitcoin Exposure&#8217;</a>
<a href="https://www.benzinga.com/m-a/24/09/40926078/nvidia-considers-165m-octoai-acquisition-aims-to-strengthen-ai-and-cloud-dominance">Nvidia Considers $165M OctoAI Acquisition, Aims to Strengthen AI and Cloud Dominance</a>
The Bears
<a href="https://www.benzinga.com/tech/24/09/40930388/apple-iphone-16-pre-orders-show-possible-low-demand-one-sign-could-point-to-company-breaking-this-em">&#8220;Apple iPhone 16 Pre-Orders Show Possible Low Demand, One Sign Could Point To Company Break With This Employee Rule,&#8221;</a> by <a href="https://www.benzinga.com/author/chris-katje">Chris Katje</a>, highlights concerns over weaker-than-expected demand for Apple Inc&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) iPhone 16, with an analyst citing early pre-order data of 37 million units and employee discounts available unusually early as potential warning signs.
"<a href="https://www.benzinga.com/trading-ideas/technicals/24/09/40942441/stock-of-the-day-home-depot-agrees-to-settlement-while-overbought-signals-warn-of-potent">Home Depot Agrees To Settlement, While Overbought Signals Warn Of Potential Sell-Off</a>," by <a href="https://www.benzinga.com/author/mark-putrino">Mark Putrino</a>, reports on Home Depot Inc&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) nearly $2 million settlement for overcharging allegations. At the same time, technical indicators suggest the stock may face a sell-off due to overbought conditions.
"<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40955933/brace-for-stagflation-after-feds-benevolence-warns-analyst-raising-5-corporate-red-">Brace For Stagflation After Fed&#8217;s Benevolence, Warns Analyst, Raising 5 Corporate Red Flags: &#8216;Inflation Is Transitory Mistake All Over Again&#8217;</a>," by <a href="https://www.benzinga.com/author/shanthi-rexaline">Shanthi Rexaline</a>, discusses Gordon Johnson&#8216;s warning that the Federal Reserve&#8216;s recent rate cuts could lead to stagflation, citing downturns at Skechers U.S.A., Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SKX#NYSE">SKX</a>) and FedEx Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDX#NYSE">FDX</a>) as red flags.
For more bearish takes, be sure to see these posts:
<a href="https://www.benzinga.com/general/social-media/24/09/40943414/donald-trump-can-cash-out-his-trump-media-technology-stock-keep-company-control-heres-how-ma">Donald Trump Can Cash Out His Trump Media &amp; Technology Stock, Keep Company Control: Here&#8217;s How Many Shares He Owns</a>
<a href="https://www.benzinga.com/personal-finance/financial-advisors/24/09/40943386/mass-slaughter-wealth-manager-warns-of-market-correction-digital-disruption-a">&#8216;Mass Slaughter&#8217;: Wealth Manager Warns Of Market Correction, Digital Disruption As ETF, Passive Investing Goes Up And To The Right</a>
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40959748/exclusive-options-expert-warns-of-terrible-week-after-fridays-triple-witching">EXCLUSIVE: Options Expert Warns Of &#8216;Terrible Week&#8217; After Friday&#8217;s Triple Witching</a>
Keep up with all the latest breaking news and trading ideas by following<a href="https://twitter.com/Benzinga"> Benzinga</a><a href="http://twitter.com/Benzinga"> on Twitter</a>.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

The Federal Reserve announced Wednesday<a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40926026/federal-reserve-delivers-bold-0-5-rate-cut-signals-further-easing-ahead"> a deep 50 basis-point cut to its Fed funds rate, </a>which is likely to ease the pressure on consumers. An analyst, however, sees a return of recession along with stagnation.
What Happened: &#8220;Get ready for stagnation,&#8221; said GLJ Research&#8217;s Gordon Johnson, adding that, this is the &#8220;inflation is Transitory&#8221; mistake all over again. To make his case, he noted four corporate announcements suggesting the near could be challenging.
China Drags Skechers: Skechers U.S.A., Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SKX#NYSE">SKX</a>), which designs, manufactures and distributes footwear, sees softness in China&#8217;s business. CFO John Vandemore said, at the Wells Fargo Consumer Conference, &#8220;We've definitely seen worse conditions unfold in China than we expected for the back half of the year, so I would expect the back of the year's going to be more disappointing than what we had originally thought.&#8221; The shares reacted with a sharp tumble on Thursday, settling down 9.62% to $61.56
Rough Road For Mercedes-Benz: Also German automaker Mercedes-Benz Group AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MBGAF#OTC">MBGAF</a>) late Thursday said its 2024 earnings before interest and taxes will likely come in &#8220;significantly below&#8221; the previous year, citing a further deterioration in the macroeconomic environment, mainly in China. The automaker also said it expects its adjusted return on sales to be between 7.5% and 8.5%, down from its earlier forecast of 10% to 11%. The company&#8217;s shares listed on the Frankfurt exchange fell nearly 7%.
See Also: <a href="https://www.benzinga.com/money/best-depression-stocks">Best Depression Stocks</a>
FedEx Doesn&#8217;t Deliver: Package-shipping company FedEx Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDX#NYSE">FDX</a>) reported first-quarter earnings that fell year-over-year and missed expectations. The company reduced the high end of the full-year adjusted operating income guidance. The predicament was blamed on circumspect consumers favoring cheaper services over pricey and speedier options. The stock fell over 13% in premarket trading on Friday.
Lennar&#8217;s Underwhelming Quarter: Homebuilder Lennar Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>) reported roughly 8% revenue growth to $9.42 billion and earnings per share were up 10% but the average sales price of houses fell.
More Cuts At Warner Music: Entertainment and record-label company Warner Music Group Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WMG#NASDAQ">WMG</a>) said Thursday it plans to reduce its workforce by about 750 employees, representing 13% of its total headcount, more than the 10% expected earlier.
R-Word Still Floats Around: Chief Global Strategist of BCA Research Peter Berezin said in an X post that the 50 basis-point cut and another 50 bps reduction the central bank is penciling in before the year-end <a href="https://www.benzinga.com/news/earnings/24/09/40954521/wall-street-looks-to-pause-after-s-ps-record-performance-as-fed-rate-cut-euphoria-fades-and-hard-la">may not ensure a soft landing. </a>He pointed out to the previous two rate-cut cycles when recession followed following 100 basis-point cuts.
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), an exchange-traded fund that tracks the S&amp;P 500 Index, fell 0.26% to $567.76, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data. </a>The ETF, however, is up nearly 21% so far this year.
Read Next:
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<li><a href="https://www.benzinga.com/news/earnings/24/09/40948046/fedex-q1-earnings-revenue-miss-eps-miss-lowered-guidance-challenging-quarter">FedEx Q1 Earnings: Revenue Miss, EPS Miss, Lowered Guidance — &#8216;Challenging Quarter&#8217;</a></li>
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Brace For Stagflation After Fed's Benevolence, Warns Analyst, Raising 5 Corporate Red Flags: 'Inflation Is Transitory Mistake All Over Again'

WIIM

Skechers shares are trading lower after the company discussed near-term China challenges.

Skechers USA, Inc. ("Skechers" or the "Company") (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SKX#NYSE">SKX</a>), The Comfort Technology Company&#x2122; and a global footwear leader, today announced that John Vandemore, Chief Financial Officer, will participate in a fireside chat at the Wells Fargo Consumer Conference in Dana Point, CA on Thursday, September 19, 2024, at 11:00 a.m. PT / 2:00 p.m. ET.
The audio portion of the fireside chat will be available live and on replay for 90 days on the Company's website at <a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Finvestors.skechers.com%2F&amp;esheet=54119526&amp;newsitemid=20240912907774&amp;lan=en-US&amp;anchor=investors.skechers.com&amp;index=1&amp;md5=0ba3902a8610b4632014f0a177b26839">investors.skechers.com</a>.

Events

Watching Skechers U.S.A.; Shares Spike Lower, Co Currently Speaking At The Wells Fargo Consumer Conference Which Began At 2:00 p.m. ET

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock&#39;s price, but are they really important?
Let&#39;s take a look at what these Wall Street heavyweights have to say about Skechers (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/skx#NYSE">SKX</a>) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Skechers currently has an average brokerage recommendation of 1.08, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 12 brokerage firms. An ABR of 1.08 approximates between Strong Buy and Buy.
Of the 12 recommendations that derive the current ABR, 11 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 91.7% and 8.3% of all recommendations.
<h2>Brokerage Recommendation Trends for SKX</h2>
<img alt="Broker Rating Breakdown Chart for SKX" class="chart" src="https://staticx-tuner.zacks.com/images/yesopchart/brokerage_bar/SKX_09052024.png" style="width:100%" title="" /> 
The ABR suggests buying Skechers, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every &quot;Strong Sell&quot; recommendation, brokerage firms assign five &quot;Strong Buy&quot; recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock&#39;s future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock&#39;s price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
<h2>Zacks Rank Should Not Be Confused With ABR</h2>
In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers&#39; vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company&#39;s changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
<h2>Is SKX a Good Investment?</h2>
In terms of earnings estimate revisions for Skechers, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $4.16.
Analysts&#39; steady views regarding the company&#39;s earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Skechers.
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Skechers.
<a href="https://www.zacks.com/stock/news/2332015/brokers-suggest-investing-in-skechers-skx-read-this-before-placing-a-bet?cid=CS-BENZ-FT-fundamental_analysis|average_broker_rating-2332015">To read this article on Zacks.com click here.</a>

Skechers USA's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SKX#NYSE">SKX</a>) short percent of float has risen 22.43% since its last report. The company recently reported that it has 3.80 million shares sold short, which is 3.93% of all regular shares that are available for trading. Based on its trading volume, it would take traders 1.51 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Skechers USA Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1725461116_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Skechers USA has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Skechers USA's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Skechers USA's peer group average for short interest as a percentage of float is 6.94%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

(SKX) - Analyzing Skechers USA's Short Interest

Making a noteworthy insider sell on August 29, Michael Greenberg, President at Skechers USA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SKX#NYSE">SKX</a>), is reported in the latest SEC filing.
What Happened: Greenberg's recent move involves selling 91,950 shares of Skechers USA. This information is documented in a Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0001065837/000095017024101844//Archives/edgar/data/1065837/000095017024101844/0000950170-24-101844-index.htm">U.S. Securities and Exchange Commission</a> on Thursday. The total value is $5,542,065.
Tracking the Friday's morning session, Skechers USA shares are trading at $68.23, showing a down of 0.38%.
<h3>All You Need to Know About Skechers USA</h3>
Skechers USA Inc is a lifestyle footwear company under the Skechers GO brand name. Products offered include various styles of women's shoes, men's shoes, girl's shoes, boy's shoes, performance shoes, and work shoes. Allied products offered are apparel, bags, eyewear, toys, and more. Its products are available for sale at department and specialty stores, athletic and independent retailers, boutiques, and internet retailers. The company's operating segments includes Wholesale and Direct-to-Consumer. It generates maximum revenue from the Wholesale segment.
<h3>Skechers USA's Financial Performance</h3>
Revenue Growth: Skechers USA's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 7.21%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Navigating Financial Profits:
<ul>
<li>
Gross Margin: The company excels with a remarkable gross margin of 54.89%, indicating superior cost efficiency and profitability compared to its industry peers.
</li>
<li>
Earnings per Share (EPS): Skechers USA's EPS reflects a decline, falling below the industry average with a current EPS of 0.92.
</li>
</ul>
Debt Management: Skechers USA's debt-to-equity ratio is below the industry average at 0.42, reflecting a lower dependency on debt financing and a more conservative financial approach.
Valuation Metrics:
<ul>
<li>
Price to Earnings (P/E) Ratio: Skechers USA's P/E ratio of 18.36 is below the industry average, suggesting the stock may be undervalued.
</li>
<li>
Price to Sales (P/S) Ratio: The P/S ratio of 1.27 is lower than the industry average, implying a discounted valuation for Skechers USA's stock in relation to sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): Skechers USA's EV/EBITDA ratio, lower than industry averages at 10.33, indicates attractively priced shares.
</li>
</ul>
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
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<h3>Why Pay Attention to Insider Transactions</h3>
In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.
Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
<h3>Exploring Key Transaction Codes</h3>
Surveying the realm of stock transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001065837">Check Out The Full List Of Skechers USA's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Trades

Michael Greenberg Takes Money Off The Table, Sells $5.54M In Skechers USA Stock

Michael Greenberg, President at Skechers USA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SKX#NYSE">SKX</a>), disclosed an insider sell on August 29, according to a recent SEC filing.
What Happened: A Form 4 filing from the <a href="https://www.sec.gov/Archives/edgar/data/0001065837/000095017024101848//Archives/edgar/data/1065837/000095017024101848/0000950170-24-101848-index.htm">U.S. Securities and Exchange Commission</a> on Thursday showed that Greenberg sold 422,000 shares of Skechers USA. The total transaction amounted to $29,488,938. 
The latest market snapshot at Friday morning reveals Skechers USA shares down by 1.07%, trading at $67.75.
<h3>Delving into Skechers USA's Background</h3>
Skechers USA Inc is a lifestyle footwear company under the Skechers GO brand name. Products offered include various styles of women's shoes, men's shoes, girl's shoes, boy's shoes, performance shoes, and work shoes. Allied products offered are apparel, bags, eyewear, toys, and more. Its products are available for sale at department and specialty stores, athletic and independent retailers, boutiques, and internet retailers. The company's operating segments includes Wholesale and Direct-to-Consumer. It generates maximum revenue from the Wholesale segment.
<h3>Skechers USA: Financial Performance Dissected</h3>
Revenue Growth: Over the 3 months period, Skechers USA showcased positive performance, achieving a revenue growth rate of 7.21% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Interpreting Earnings Metrics:
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Gross Margin: The company maintains a high gross margin of 54.89%, indicating strong cost management and profitability compared to its peers.
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Earnings per Share (EPS): With an EPS below industry norms, Skechers USA exhibits below-average bottom-line performance with a current EPS of 0.92.
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Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.42.
Understanding Financial Valuation:
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Price to Earnings (P/E) Ratio: The P/E ratio of 18.36 is lower than the industry average, implying a discounted valuation for Skechers USA's stock.
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Price to Sales (P/S) Ratio: The P/S ratio of 1.27 is lower than the industry average, implying a discounted valuation for Skechers USA's stock in relation to sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): With an EV/EBITDA ratio lower than industry averages at 10.33, Skechers USA could be considered undervalued.
</li>
</ul>
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
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<h3>Understanding the Significance of Insider Transactions</h3>
Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision. 
From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
<h3>Navigating the World of Insider Transaction Codes</h3>
Surveying the realm of stock transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001065837">Check Out The Full List Of Skechers USA's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Decision: Michael Greenberg Offloads $29.49M Worth Of Skechers USA Stock

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Shares of retail companies are trading higher following strong New Home Sales economic data for July. Also, these companies may be moving in sympathy with the market after Fed Chair Powell offered an optimistic U.S. economic outlook and indicated future rate cuts.

Carter&#39;s, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cri#NYSE">CRI</a>) has been doing well, thanks to its robust business strategies. The company is benefiting from the success of its pricing strategy, inventory-management efforts and better product offerings. Management is focused on creating a trend-right merchandise assortment, deepening relations with customers via marketing, expanding international markets and efficiently controlling expenses.
<h3>Delving Deeper</h3>
Carter&#39;s has made significant pricing actions to address market conditions and enhance profitability. In second-quarter 2024, the company saw improved price realization and profit margins, thanks to the strength in its product offerings and lower inbound freight rates, along with better inventory management.
We note that the company is focused on essential core products. This focus, coupled with a compelling value proposition, wherein average retail price points are around $11, makes Carter&#39;s an attractive option for budget-conscious consumers. Its pricing strategy involves keeping its brands competitively priced, which has proven effective in maintaining competitiveness in the market.
The company&#39;s new Oshkosh back-to-school launch, the premium fashion denim and bottoms, has received positive feedback from customers. Also, Little Planet and PurelySoft, its newest and sustainable brands, have been performing well. Management expects about $50 million with respect to the incremental investments in pricing and marketing in the second half of 2024. The impact of this price adjustment will be around $40 million on its annual operating income.
Although Carter&#39;s top line continued to witness the impacts of inflation on reduced consumer spending, the demand trends in the wholesale segment showed improvement in the second quarter. The company noted that its wholesale segment is gaining from leaner inventories with wholesale customers.
As a result, CRI registered growth in its U.S. Wholesale sales. In the reported quarter, it saw higher demand in its U.S. Wholesale segment, led by the exclusive brands. It experienced double-digit growth in the replenishment wholesale sales in the quarter. The company&#39;s supply chain continues to strengthen the business, offsetting lower product costs for the rest of this year. For the U.S. Wholesale business, management projects strong growth in 2024.
Carter&#39;s, which shares space with Wolverine (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/www#NYSE">WWW</a>), Skechers (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/skx#NYSE">SKX</a>) and Steven Madden (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/shoo#NASDAQ">SHOO</a>), focuses on efficient cost management and operational improvements. The company has been witnessing a notable expansion in its margin rates, driven in part by lower inbound freight rates, which were the significant contributor to the margins. In the second quarter, the gross margin expanded 150 basis points (bps) on lower product input costs, a decline in inbound freight rates and soft sales to the off-price channel, which were partly offset by inventory provisions. The adjusted operating margin increased 70 bps to 7%.
Margins have been driving the bottom line as well. In the second quarter, Carter&#39;s reported adjusted earnings of 76 cents per share, which surpassed the Zacks Consensus Estimate of 45 cents. The figure rose 18.8% from earnings of 64 cents per share in the prior-year quarter.
For the rest of 2024, Carter&#39;s anticipates lower product costs, which are expected to enable it to strengthen its product offerings and sharpen price points, thereby improving profitability. It anticipates inbound freight costs down more than 20%.
<h3>Other Stocks</h3>
Wolverine has been making significant strides in its transformation plan. The company is enhancing its consumer engagement with innovative marketing campaigns and strengthening its global presence. Its strategic initiatives emphasize consumer-centricity, with investments in talent acquisition, consumer insights and innovation. This approach enhances brand loyalty, fosters product innovation and drives long-term growth by meeting evolving consumer demands.&nbsp; With a consistent focus on product innovation and market positioning, Wolverine is well-positioned for continued growth and increased market share.
Skechers&#39; diversified portfolio of footwear, focusing on comfort-based products and leveraging a multi-brand strategy, is proving successful. The company is investing in global infrastructure, including retail stores, e-commerce platforms and distribution centers. It continues to expand its direct-to-consumer segment and bolsterinternational sales growth. Additionally, the company plans to open new stores, thereby enhancing its omnichannel capabilities. Its top line jumped 7.2% year over year, backed by a 6.9% rise in international sales and a 7.7% increase in domestic sales in second-quarter 2024.
Steven Madden&#39;s solid performance across its wholesale, direct-to-consumer and licensing segments highlights the execution of its robust strategic initiatives and positions it well for growth. The company is focused on leveraging digital capabilities, expanding categories beyond footwear, such as handbags and apparel, and enhancing its international market presence. In the second quarter, Steven Madden&#39;s revenues increased 17.6% year over year, with Wholesale revenues growing 22.5% and DTC revenues rising 6.4%.
<a href="https://www.zacks.com/stock/news/2322687/carter-s-cri-pricing-actions-wholesale-channel-bode-well?cid=CS-BENZ-FT-analyst_blog|zer_report_update-2322687">To read this article on Zacks.com click here.</a>

Earnings Beats

Mid Cap

Retail Sales

Small Cap

Management

SHOO

Carter's Pricing Actions & Wholesale Channel Bode Well

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market&#39;s attention and deliver solid returns. However, it isn&#39;t easy to find a great growth stock.
That&#39;s because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score, which looks beyond the traditional growth attributes to analyze a company&#39;s real growth prospects.
Skechers (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/skx#NYSE">SKX</a>) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
While there are numerous reasons why the stock of this shoe company is a great growth pick right now, we have highlighted three of the most important factors below:
<h2>Earnings Growth</h2>
Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Skechers is 25.4%, investors should actually focus on the projected growth. The company&#39;s EPS is expected to grow 19.1% this year, crushing the industry average, which calls for EPS growth of 13.2%.
<h2>Cash Flow Growth</h2>
While cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That&#39;s because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.
Right now, year-over-year cash flow growth for Skechers is 38.2%, which is higher than many of its peers. In fact, the rate compares to the industry average of -9.1%.
While investors should actually consider the current cash flow growth, it&#39;s worth taking a look at the historical rate too for putting the current reading into proper perspective. The company&#39;s annualized cash flow growth rate has been 12.1% over the past 3-5 years versus the industry average of 4.3%.
<h2>Promising Earnings Estimate Revisions</h2>
Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Skechers have been revising upward. The Zacks Consensus Estimate for the current year has surged 2.3% over the past month.
<h2>Bottom Line</h2>
Skechers has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
This combination positions Skechers well for outperformance, so growth investors may want to bet on it.
<a href="https://www.zacks.com/stock/news/2321552/3-reasons-growth-investors-will-love-skechers-skx?cid=CS-BENZ-FT-tale_of_the_tape|yseop_template_11_growth-2321552">To read this article on Zacks.com click here.</a>

3 Reasons Growth Investors Will Love Skechers

Investors in Skechers U.S.A., Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/skx#NYSE">SKX</a>) need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 17, 2025 $20.00 Call had some of the highest implied volatility of all equity options today.
<h3>What is Implied Volatility?</h3>
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
<h3>What do the Analysts Think?</h3>
Clearly, options traders are pricing in a big move for Skechers shares, but what is the fundamental picture for the company? Currently, Skechers is a Zacks Rank #2 (Buy) in the Shoes and Retail Apparel industry that ranks in the Top 23% of our Zacks Industry Rank. Over the last 60 days, three analysts have increased their earnings estimates for the current quarter, while one analyst has revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from earnings of $1.11 per share to $1.15 in that period.
Given the way analysts feel about Skechers right now, this huge implied volatility could mean there&#39;s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
<a href="https://www.zacks.com/stock/news/2318148/is-the-options-market-predicting-a-spike-in-skechers-skx-stock?cid=CS-BENZ-FT-tale_of_the_tape|options-2318148">To read this article on Zacks.com click here.</a>

Options

Is the Options Market Predicting a Spike in Skechers Stock?

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Shares of companies within the broader consumer discretionary sector are trading lower amid overall market weakness following weak US data.

Available Now For Men, Children, Agricultural Professionals, Construction Workers, Outdoor Enthusiasts, and Fashion-Minded Individuals

Skechers and John Deere Launch New Collection Combining Heritage and Comfort Technologies

Skechers U.S.A., Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/skx#NYSE">SKX</a>) delivered second-quarter 2024 results, with the top and bottom lines lagging the Zacks Consensus Estimate. Sales improved but earnings declined year over year. Challenges such as supply-chain disruptions, foreign currency headwinds, regulatory issues in India, and weakened consumer demand in China impacted the overall performance.
However, the company continued to focus on product innovation, emphasizing comfort technologies and strategic partnerships. Comprehensive marketing efforts, including new channels for football and basketball products, supported brand growth. Skechers remains committed to its goal of reaching $10 billion in annual sales by 2026.
Over the past year, shares of this Zacks Rank #1 (Strong Buy) company have gained 24.7% against the industry&#39;s 30.3% decline.
<div class="chart_embed">
<h3>Skechers U.S.A., Inc. Price, Consensus and EPS Surprise</h3>
<h3><img alt="Skechers U.S.A., Inc. Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/32/1721993827.png" style="height:265px; width:577px" title="" /></h3>
Skechers U.S.A., Inc. price-consensus-eps-surprise-chart | Skechers U.S.A., Inc. Quote
</div>
<h3>Q2 Highlights</h3>
Skechers posted second-quarter earnings of 91 cents per share, missing the Zacks Consensus Estimate for earnings of 94 cents. Also, the bottom line declined 7.1% from the year-earlier quarter.
SKX generated sales of $2,157.6 million, lagging the consensus estimate of $2,219 million. However, the top line grew 7.2% year over year, driven by a 6.9% rise in international sales and a 7.7% increase in domestic sales. Improvements in domestic and international sales were driven by robust DTC and Wholesale sales. On a constant-currency basis, total sales grew 8.7%. 
The company&#39;s wholesale sales increased 5.5% year over year to $1.13 billion, while DTC rose 9.2% to $1.03 billion. Our estimate for wholesale and DTC sales was pegged at $1.15 billion and $1.05 billion, respectively.
Wholesale sales increased 10.3% year over year in the Americas (&quot;AMER&quot;), and 3.9% in Europe, the Middle East &amp; Africa (EMEA), partially offset by a decrease of 2.6% in the Asia Pacific (&quot;APAC&quot;). Wholesale average selling price declined 0.8%, whereas the unit volume increased 6.4% year over year.
DTC sales growth included increases of 1.4% in domestic DTC sales and 15.2% in international DTC sales. The DTC unit volume rose 10.2% and the average selling price declined 1%. Also, growth of 4.1% in the AMER, 5.8% in the APAC and 40.6% in the EMEA aided the segment&#39;s performance.
Region-wise, sales increased 7.2% year over year to $1.10 billion in the AMER, 13.7% to $492.5 million in the EMEA and 2.2% to $564.2 million in the APAC. We expected sales from the AMER, EMEA and APAC regions to increase 8.9%, 7.5% and 11.6%, respectively, for the quarter under review.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/ba/72555.jpg?v=1186442497" />
Image Source: Zacks Investment Research
<h3>Margins &amp; Costs</h3>
Gross profit increased 11.7% year over year to $1.18 billion. Also, the gross margin expanded 220 basis points (bps) to 54.9%, primarily driven by lower costs per unit due to a decline in freight costs and a favorable mix of DTC volumes. We estimated the metric to expand 70 bps to 53.4% for the quarter under review.
Total operating expenses grew 16% year over year to $977.9 million. The metric, as a percentage of sales, increased 340 bps to 45.3%. We expected total operating expenses to rise 15.5% for the quarter.
Selling expenses grew 26.1% from the year-ago period to $235.9 million. Also, general and administrative expenses jumped 13.2% to $742 million. Increased costs resulted from higher brand demand creation expenditure, along with elevated labor and facility costs, such as rent and depreciation.
<h3>Other Financial Aspects</h3>
As of Jun 30, 2024, cash and cash equivalents totaled $1.28 billion, whereas short-term investments amounted to $130.1 million.
Skechers ended the quarter with long-term borrowings of $45.7 million and shareholders&#39; equity of $4.22 billion, excluding non-controlling interests of $292.3 million. The company incurred a capital expenditure of $169.5 million in the quarter.
In the second quarter of 2024, management repurchased 0.9 million shares of its Class A common stock for $60 million. The company&#39;s board authorized a new $1-billion share repurchase program.
<h3>Store Update</h3>
As of Jun 30, 2024, SKX had 5,267 stores, including 576 domestic stores, 1,126 international locations, and 3,565 distributors, licensee and franchise stores.
In the second quarter, the company opened 25 domestic stores, 98 international stores, and 194 distributors, licensee and franchise stores. It closed 12 domestic stores, 57 international stores, and 149 distributor, licensee and franchise stores in the same period.
<h3>Outlook</h3>
For 2024, management targets sales between $8.88 billion and $8.98 billion compared with the previously mentioned $8.73 billion and $8.88 billion. It predicts earnings per share (&quot;EPS&quot;) between $4.08 and $4.18 compared with the previously stated $3.95 and $4.10. Management anticipates a capital expenditure of $325-$375 million for 2024.
For the third quarter of 2024, SKX is likely to achieve sales between $2.30 billion and $2.35 billion and EPS between $1.10 and $1.15.
<h3>Other Solid Picks</h3>
Some other top-ranked stocks in the retail space are The Gap, Inc.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gps#NYSE">GPS</a>), Abercrombie &amp; Fitch Co.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/anf#NYSE">ANF</a>)&nbsp;and Stitch Fix (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sfix#NASDAQ">SFIX</a>).
Gap is a premier international specialty retailer, which offers a diverse range of clothing, accessories and personal care products. It currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for Gap&#39;s fiscal 2024 earnings and sales indicates growth of 22.4% and 0.2%, respectively, from fiscal 2023 reported figures. GPS has a trailing four-quarter average earnings surprise of 202.7%.
Abercrombie is a specialty retailer of premium, high-quality casual apparel. It flaunts a Zacks Rank of 1 at present. ANF delivered a 28.9% earnings surprise in the last reported quarter.
The consensus estimate for Abercrombie&#39;s fiscal 2024 earnings and sales indicates growth of 47.3% and 10.4%, respectively, from the fiscal 2023 reported levels. ANF has a trailing four-quarter average earnings surprise of 210.3%.
Stitch Fix is a leading online personal styling service. It currently has a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Stitch Fix&#39;s fiscal 2024 earnings indicates growth of 22.6% from the year-ago actuals. SFIX has a trailing four-quarter average earnings surprise of 14.5%.
<a href="https://www.zacks.com/stock/news/2310318/skechers-skx-q2-earnings-miss-estimates-sales-rise-y-y?cid=CS-BENZ-FT-analyst_blog|earnings_article-2310318">To read this article on Zacks.com click here.</a>

Earnings Misses

Penny Stocks

SFIX

Skechers Q2 Earnings Miss Estimates, Sales Rise Y/Y

TD Cowen analyst John Kernan maintains Skechers USA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SKX#NYSE">SKX</a>) with a Buy and raises the price target from $76 to $78.

Price Target

TD Cowen Maintains Buy on Skechers USA, Raises Price Target to $78

Wedbush analyst Tom Nikic reiterated an Outperform rating on Skechers U.S.A., Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SKX#NYSE">SKX</a>), <a target="_blank" href="https://www.benzinga.com/quote/SKX/analyst-ratings" rel="noreferrer noopener">raising the price forecast to $79 from $76.&nbsp;&nbsp;</a>
Skechers reported quarterly earnings of 91 cents per share, which missed the analyst consensus estimate of 94 cents by 3.19%. The company reported quarterly sales of $2.16 billion.
According to the analyst, the company saw strength in U.S. wholesale, Europe DTC, and gross margins, resulting in raised FY sales/EPS guidance.
In addition, the quarter would have been more robust if not for a pushout of revenue to the third quarter.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/earnings/24/07/39972642/skechers-reports-q2-results-heres-the-details" rel="noreferrer noopener">Skechers Reports Q2 Results: Here&#8217;s The Details</a>
On the flip side, U.S. DTC and China slowed meaningfully, Nikic cautioned. All in all, the analyst sees favorable risk/reward here.
The analyst raised FY24/25 EPS forecasts to <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">$4.16/ $4.92 (from $4.06/$4.75).</a>
According to the analyst, the domestic wholesale channel benefited not only from easy comparisons but also from strong consumer response to Slip-Ins and other new products.
However, U.S. DTC trends continued to slow, growing just 1% YoY against the year&#8217;s toughest compare (+29%), owing to slowing foot traffic in stores, though digital traffic improved.
The analyst adds that the company&#8217;s 2H guidance embeds modest expectations in U.S. DTC.
Price Action: SKX shares are trading higher by 1.90% to $64.92 at last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Wikimedia Commons
Read Next:
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<li><a href="https://www.benzinga.com/markets/equities/24/07/39990138/general-motors-cruise-aims-to-resume-driverless-rides-this-year-report" target="_blank" rel="noreferrer noopener">General Motors&#8217; Cruise Aims To Resume Driverless Rides This Year: Report</a></li>
</ul>

Reiteration

General

Analyst Bumps Up Skechers Price Forecast, Cites Strong Wholesale and European Growth Despite Earnings Miss

Shares of footwear companies are trading slightly higher Friday after peers Skechers U.S.A, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SKX#NYSE">SKX</a>) and Deckers Outdoor Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DECK#NYSE">DECK</a>) reported second-quarter results after <a href="https://www.benzinga.com/news/earnings/24/07/39972642/skechers-reports-q2-results-heres-the-details">Thursday's closing bell.</a> 
The Details:
Skechers reported record <a href="https://www.benzinga.com/news/earnings/24/07/39972642/skechers-reports-q2-results-heres-the-details">second-quarter sales</a> of $2.16 billion resulting from increases in both its direct-to-consumer and wholesale segments. The company also raised its sales and earnings guidance to above Street estimates.&nbsp;
Deckers, parent company of the UGG and HOKA brands, reported <a href="https://www.benzinga.com/news/earnings/24/07/39972186/deckers-outdoor-q1-earnings-revenue-eps-beat-on-strength-in-hoka-ugg-brands">better-than-expected results </a>on the top and bottom line with total revenue increasing 22% year-over-year and earnings up 87%.&nbsp;
Read Next: <a href="https://www.benzinga.com/news/earnings/24/07/39971462/dexcom-stock-drops-after-mixed-q2-results-weak-forward-guidance">DexCom Stock Drops After Mixed Q2 Results, Weak Forward Guidance</a>
On Holding AG (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ONON#NYSE">ONON</a>) shares are climbing with other footwear stocks including Birkenstock Holding Plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BIRK#NYSE">BIRK</a>) and Crocs, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CROX#NASDAQ">CROX</a>) Friday as investors digest strong growth and forward guidance from Deckers and Skechers.&nbsp;
Crocs is the next to report earnings on Aug. 1 before the opening bell, followed by On Holding reporting in mid-August, according to data from <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>. 
SKX, DECK, ONON, BIRK, CROX Price Action: According to <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, Skechers shares are up 2.78% at $65.48 , Deckers shares are up 7.99% at $908.75, On Holdings shares are up 4.78% at $40.03, Birkenstock shares are up 2.11% at $56.69 and Crocs shares are up 4% at $130.14 at the time of publication Friday.
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Image: Shutterstock

Movers

ONON

What's Going On With Footwear Stocks Today?

Evercore ISI Group analyst JESALYN Wong maintains Skechers USA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SKX#NYSE">SKX</a>) with a Outperform and raises the price target from $68 to $72.

Evercore ISI Group Maintains Outperform on Skechers USA, Raises Price Target to $72

Barclays analyst Adrienne Yih maintains Skechers USA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SKX#NYSE">SKX</a>) with a Overweight and raises the price target from $78 to $79.

Barclays Maintains Overweight on Skechers USA, Raises Price Target to $79

Shoe Carnival: The Shoe Still Fits

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The athletic industry is thriving due to the population's growing interest in sports. Amid this, let's compare athletic stocks Skechers U.S.A. (SKX) and NIKE (NKE) to analyze which athletic wear stock is a better fit. Read on to find out… Rising awareness about health and fitness is leading more people to seek active physical fitness conditioning activities. The youth population's interest in exercising and entertainment facilities is also significant. 
Besides this, governments of several countries are undertaking initiatives to promote personalized training programs for developing a healthy body and mind, contributing to the market's growth.
As people's inclination toward sports activities increases, the global sportswear market is expected to grow at a <a href="https://www.fortunebusinessinsights.com/sportswear-market-102571">CAGR of 6.7%</a> to reach $305.67 billion by 2030. Amid this, the global sports footwear market is projected to reach $168.92 billion by 2032, exhibiting a <a href="https://www.fortunebusinessinsights.com/sports-footwear-market-102216">CAGR of 5.4%</a>.
Against this backdrop, let's compare two established athletic stocks to analyze which athletic wear stock is a better fit: Skechers U.S.A., Inc. (<a href="https://stocknews.com/stock/SKX/">SKX</a>) and NIKE, Inc. (<a href="https://stocknews.com/stock/NKE/">NKE</a>).
The Case for Skechers U.S.A., Inc. Stock
With a $9.49 billion market cap, Skechers U.S.A., Inc. (<a href="https://stocknews.com/stock/SKX/">SKX</a>) designs, develops, markets, and distributes footwear for men, women, and children worldwide. The company operates through Wholesale and Direct-to-Consumer segments. 
On August 1, 2024, SKX launched a new footwear collection with John Deere. Designed for agricultural professionals, construction workers, outdoor enthusiasts, fashion-minded individuals, and children, the new styles boast the perfect mix of innovation and style.
SKX's stock has gained 23.4% over the past nine months and 15.7% over the past year to close the last trading session at $61.71.
SKX's forward <a href="https://www.investopedia.com/terms/e/ev-ebitda.asp">EV/EBITDA</a> of 8.95x is 6% lower than the industry average of 9.52x. Its forward EV/Sales multiple of 1.14 is 3.9% lower than the industry average of 1.18.
For the second quarter that ended June 30, 2024, SKX's sales increased 7.2% year-over-year to $2.16 billion. Its gross profit rose 11.7% over the prior-year quarter to $1.18 billion. Also, net earnings attributable to SKX stood at $140.30 million and $0.91 per share.
Analysts expect SKX's revenue for the third quarter (ending September 2024) to increase 14.3% year-over-year to $2.31 billion. Likewise, its EPS for the same quarter is projected to grow 25.7% year-over-year to $1.17. Moreover, the company has topped consensus revenue and EPS estimates in three of the trailing four quarters, which is excellent.
SKX's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect its promising outlook. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
The stock has a B grade for Value, Sentiment, and Quality. SKX is ranked #2 out of 34 stocks in the <a href="https://stocknews.com/category/athletics-recreation/">Athletics &amp; Recreation</a> industry.
In addition to the POWR Ratings I've just highlighted, you can see SKX's ratings for Growth, Momentum, and Stability <a href="https://stocknews.com/stock/SKX/">here</a>.
The Case for NIKE, Inc. Stock
Valued at $111.91 billion by market cap, NIKE, Inc. (<a href="https://stocknews.com/stock/NKE/">NKE</a>) designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services worldwide. The company provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks.
NKE's stock has gained 1.7% over the past month to close the last trading session at $74.64. However, over the past year, the stock has surged 31%.
NKE's forward EV/EBIT of 20.62x is 48.5% higher than the industry average of 13.89x.
NKE's revenues for the fiscal fourth quarter ended May 31, 2024, decreased 1.7% year-over-year to $12.61 billion. In contrast, its gross profit rose marginally year-over-year to $5.63 billion. Additionally, the company's net income and EPS increased 45.5% and 50% over the year-ago quarter, reaching $1.50 billion and $0.99, respectively.
Analysts expect NKE's EPS for the quarter ending August 31, 2024, to decrease 43.6% year-over-year to $0.53, while its revenue for fiscal 2026 is expected to increase 5.5% year-over-year to $51.71 billion. It surpassed Street EPS estimates in each of the trailing quarters.
NKE's mixed fundamentals are reflected in its POWR Ratings. The stock has an overall C rating, translating to Neutral in our proprietary rating system.
NKE has a C grade for Sentiment, Value, Stability, and Momentum. It is ranked #12 among 34 stocks in the same industry.
<a href="https://stocknews.com/stock/NKE/">Click here</a> for the additional POWR Ratings for NKE (Quality and Growth).
NIKE (NKE) vs. Skechers (SKX): Which Athletic Wear Stock is a Better Fit?
The rising popularity of sports as a way to minimize the risk of developing lifestyle diseases and improve physical and mental health is driving the global sportswear market.
Leading athletic companies SKX and NKE stand to capitalize on the optimistic industry outlook. However, SKX's strong financial performance, lower valuation, and promising near-term outlook favor it as the better athletic stock pick.
Our research shows that the odds of success increase when one invests in stocks with an Overall Rating of Strong Buy or Buy. View all the top-rated stocks in the Athletics &amp; Recreation industry <a href="https://stocknews.com/category/athletics-recreation/">here</a>.
What To Do Next?
43 year investment veteran, Steve Reitmeister, has just released his 2024 market outlook along with trading plan and top 11 picks for the year ahead.
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<hr />
NKE shares were trading at $78.58 per share on Tuesday afternoon, up $3.94 (+5.28%). Year-to-date, NKE has declined -27.08%, versus a 14.23% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Nidhi Agarwal</h2> <img src='https:/wp-content/uploads/2023/03/Nidhi-Agarwal_Headshot-3.jpg' style="float:left; padding:5px;width:125px;">Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor's degree in finance and marketing and is pursuing the CFA program.

Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.<a href="https://stocknews.com/authors/?author=nidhi-agarwal">More...</a>The post <a href=https://stocknews.com/news/nke-skx-nike-nke-vs-skechers-skx-which-athletic-wear-stock-is/>NIKE (NKE) vs. Skechers (SKX): Which Athletic Wear Stock Is a Better Fit?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

NIKE (NKE) vs. Skechers (SKX): Which Athletic Wear Stock Is a Better Fit?

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