- Adjusted EPS: Earnings per share (EPS) for Skechers were 97 cents, higher than the expected 95 cents.
- Regular EPS: Skechers reported EPS of 91 cents, down from 98 cents year-over-year (y/y).
- Net Sales: The company achieved net sales of $2.16 billion, falling short of the $2.23 billion estimate.
- Direct-to-Consumer Sales: These sales reached $1.03 billion, an increase of 9.2% y/y, but below the $1.07 billion estimate.
- Gross Margin: The gross margin improved to 54.9%, higher than the y/y figure of 52.7% and the estimated 53.6%.
- Operating Margin: Lowered to 9.6% from 10.8% y/y, not meeting the estimated 9.69%.
- Inventory: Increased to $1.51 billion, a 1.9% rise y/y, slightly above the $1.49 billion estimate.
- Earnings Before Income Taxes: Decreased by 7.1% y/y to $204.9 million, missing the $218.3 million estimate.
- Comments on Performance: Strong performance in international direct-to-consumer and domestic wholesale, with respective increases of 15% and 14%.
- Growth Drivers: Sales increases of 9% in Direct-to-Consumer, 6% in Wholesale, 7% internationally, and 8% domestically contributed to overall growth.
- Challenges: The international segment faced significant challenges from foreign currency issues, a weak period (6-18) in China, and supply chain disruptions related to the Suez Canal crisis.
- Ratings: The stock has 17 buy ratings, 1 hold, and no sell ratings from analysts.
Skechers Usa Inc Cl A on Smartkarma
Analyst coverage of Skechers Usa Inc Cl A on Smartkarma reveals positive sentiments from Baptista Research. In one report titled “Skechers U.S.A.: Increased Innovation and Messaging around Comfort Technologies & Other Major Drivers,” the company achieved a new quarterly sales record of $2.25 billion in Q1 2024, marking a 12.5% increase compared to the previous year. Diluted earnings per share also reached a record of $1.33, driven by growth in both direct-to-consumer and wholesale sectors globally.
In another report by Baptista Research titled “Skechers U.S.A.: Does The Recovery In Wholesale Orderbook Warrant A Bullish Thesis? – Major Drivers,” Skechers ended the 2023 fiscal year on a high note with an annual sales record of $8 billion. This milestone was supported by achieving four quarterly sales records, including a fourth-quarter sales figure of $1.96 billion, as well as an annual gross margin record of 51.9%. Overall, analyst sentiment on Skechers Usa Inc Cl A remains optimistic based on these research insights.
A look at Skechers Usa Inc Cl A Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Skechers USA Inc Cl A has a promising long-term outlook. With a strong Growth score of 5, the company is positioned for significant expansion and development in the future. Additionally, Skechers scores well in Momentum with a score of 4, indicating positive market momentum and potentially favorable stock performance ahead.
Despite a lower Dividend score of 1, the company’s overall outlook appears bright, supported by solid Value and Resilience scores of 3 each. Skechers USA Inc Cl A is known for designing and marketing a wide range of footwear for various demographics, selling through multiple channels both domestically and internationally, which enhances its market presence and potential for continued success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
