SKX - Skechers: Great Performance But Look Out For Weak Guidance

2024-03-23 02:35:58 ET

Summary

• Skechers has performed well over the past year, with improvements in margins, efficiency, and profitability.
• Analysts are expecting decent growth in revenue and EPS for the upcoming earnings report, but there have been downward revisions, and the company may miss revenue estimates.
• The company's focus on its Direct-to-consumer segment and online stores is driving efficiency and profitability, and further margin expansion is expected in the future.

Introduction

I wanted to look into Skechers ( SKX ) since I haven’t covered the company in over half a year, so I wanted to see how it has performed over the last year. It also has earnings coming up at the end of April, which begs the question if it would be the right time to start or to add to a position before the report. The company has performed well over the year, and my long thesis is more than intact, however, there may be softness coming in this report which may present an even better entry point if you like the company long-term, therefore, I am assigning a hold rating until we see what the report gives us....

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