Williams Trading analyst Sam Poser has maintained their bullish stance on SKX stock, giving a Buy rating today.
Sam Poser’s Buy rating on Skechers USA is influenced by a multitude of aspects, including the robust consumer demand for Skechers, evidenced by a notable 20% increase in retail business owned by the company. Despite temporary challenges in wholesale order fulfillment, Poser expects a resurgence in wholesale demand that will outpace current guidance, leading him to maintain an optimistic stance on the company’s financial performance into FY24 and FY25. Moreover, Poser has adjusted the price target to $71, acknowledging a slight recalibration from previous estimates while still maintaining a positive outlook.
The foundation of Poser’s recommendation is also supported by Skechers’ impressive financial results, with 4Q23 earnings surpassing expectations and gross margins showing significant improvement. The sustained strong gross margins are credited to the demand for new premium products, efficient inventory management, and an increase in direct-to-consumer (DTC) sales, which boost average selling prices and full-price sales. Poser anticipates this trend to continue, with DTC growth expected to outshine that of wholesale. Furthermore, Skechers’ strategic overinvestment in marketing and expansion is seen as a long-term positive, cementing the basis for Poser’s Buy rating.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $70.00 price target.
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Skechers USA (SKX) Company Description:
SKECHERS USA, Inc. engages in designing, development and marketing of lifestyle footwear for men, women, and children of all ages. It operates through the following segments: Domestic Wholesale Sales, International Wholesale Sales, and Retail Sales. The Domestic Wholesale Sales segment distributes footwear through the domestic wholesale distribution channels: department stores, specialty stores, athletic specialty shoe stores and independent retailers, as well as catalog and internet retailers. The International Wholesale Sales segment includes international direct subsidiary sales and international distributor sales. The Retail Sales segment refers to e-commerce which operates through the concept stores, factory outlet stores, and warehouse outlet stores. The company was founded by Robert Greenberg and Michael Greenberg in 1992 and is headquartered in Manhattan Beach, CA.
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