Shares of shoemaker Skechers (NYSE: SKX) have been on a wild ride. The company enjoyed rapid growth in the first half of the 2010s, but over the last five-year stretch, the stock has turned volatile and is up only 38% as of this writing. That compares to an 81% total return (including dividends) for the S&P 500.
Since the company released its second-quarter 2022 earnings report, I've put Skechers on a short leash, and might sell the whole position later this year. Here's why, and what I'll be looking to replace it with instead.
Skechers notched a big rebound in 2021 as effects from the pandemic eased. In fact, the company reported record sales of $6.29 billion, a 37% increase from the depressed results of 2020. The company's direct-to-consumer segment (sales from its website and retail stores) grew 38%.
For further details see:
3 Reasons to Sell Skechers Stock Right Now, and 3 Stocks to Buy Instead