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Skechers overtook Adidas to occupy No 2 in the U.S. sports shoes
2015/5/28 8:13:27 Source: insidetrade Author: 点击率:
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Skechers USA Inc. (NYSE:SKX) overtook Adidas AG ADDYY to occupy the number #2 spot in the U.S. sports footwear market. The company has been gaining ground steadily by offering stylish and casual shoes at a much compelling price than the conventional athletic brands.

As per the retail tracker NPD Group, Skechers held 5% of the sports footwear market in the U.S. for the quarter ended Mar 2015, exceeding Adidas’ 4.6% share which now holds the third place. Nike, Inc. NKE and its Jordan Brand still remains the undisputed champion of the sports footwear market holding the largest share of 62%.

Skechers has benefited from the so-called athleisure trend that has been sweeping the retail sector in the U.S. This rise in the company’s market share is attributable to the growing preference for cheaper shoes in the country. People now want to avail cheaper sports shoes, which they can put on to make a fashion statement irrespective of whether they work out or not.

With increased focus on the new line of products, cost containment, inventory management, a global distribution platform and sturdy backlogs, the company is confident of sustaining its growth momentum. Moreover, Skechers’ international business remains a significant sales growth driver for the company. We note that Skechers’ net sales surged 29% to a record $2.4 billion in 2014.

Skechers Equity Analysis

Skechers USA Inc. (NYSE:SKX) opened trading today as $103.90 and is trading in the range of 103.10-105.30 today. Skechers’ current market cap stands at $5.41 billion.

Compared to other peers in the Textile – Apparel Footwear & Accessories sector, Skechers has outperformed in terms of quarterly revenue growth year over year at 0.40 vs. the industry average of 0.00. Skechers’ earnings per share is currently at 3.21, which surpasses the sector average of 1.47.

Skechers is currently covered by 9 Wall Street analysts. The mean target price is $103.56 according to First Call. This presents a solid downside to the current price of the equity. The Mean Recommendation sits at 1.6 which is based on 4 Strong Buy and 5 Buy.

The most recent analyst actions consisted of Buckingham Research upgrading the stock on April 23rd and B. Riley & Co.initiating coverage with an initiation rating back in April.

The current quarter EPS consensus estimate is .97 with revenue estimates of 728.08M. Sales are expected to grow at a 24.00% rate. Skechers reported actual earnings last quarter of 1.10 which beats the 1.01 consensus estimate, a 8.90% surprise.

Corporate Profile

Skechers U.S.A., Inc. designs, develops, markets, and distributes footwear for men, women, and children, as well as performance footwear for men and women under the Skechers GO brand name. The company operates through four segments: Domestic Wholesale Sales, International Wholesale Sales, Retail Sales, and E-commerce Sales. It offers casual footwear, including boots, shoes, and sandals for men, as well as oxfords and slip-ons, lug outsole and fashion boots, and casual sandals for women; dress casuals, seasonal sandals and boots, and relaxed fit casuals for men and women; casual fusion line for young men and women under the Skechers USA brand. The company also provides footwear for men and women comprising Skechers memory foam styles, lightweight performance-inspired athletics, classic athletic-inspired styles, and sport sandals and boots under the Skechers Sport brand name; sneakers for females under the name of Skechers Active brand; and footwear for kids, men, and young women under the BOBS from Skechers name. In addition, it offers boots, shoes, sneakers, sandals, and skimmers for infants, toddlers, boys, and girls under the name of Skechers Kids brand. Further, the company provides men’s and women’s casuals, field boots, hikers, and athletic shoes under the Skechers Work brand; technical footwear under the Skechers Performance brand; and footwear designed for running, walking, trail running, gym, and golf course. It sells its products through its e-commerce Website and own retail stores; and through department and specialty stores, athletic and independent retailers, boutiques, and catalog and Internet retailers. As of February 15, 2014, the company operated 122 concept stores, 131 factory outlet stores, and 71 warehouse outlet stores in the United States; and 44 concept stores and 26 factory outlets internationally. Skechers U.S.A., Inc. was founded in 1992 and is headquartered in Manhattan Beach, California.

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