SKECHERS U.S.A reports second quarter earnings for 2023
August 1, 2023
🌥️Earnings Overview
On July 27 2023, SKECHERS U.S.A ($NYSE:SKX). reported their financial results for the second quarter of 2023 – boasting revenue of USD 2012.5 million, a 7.7% increase from the same period in the prior year, and net income of USD 152.8 million, a remarkable 69.0% year-over-year jump.
Stock Price
The stock opened at $52.4 and closed at $51.1, a decrease of 3.2% from its previous closing price of 52.8. This decrease was due to the market reacting negatively to the earnings announcement, as investors had expected a better performance from the company. The main area of concern for investors was the company’s net sales, which decreased by 10% compared to the same period the previous year. Despite this, the company reported positive results in terms of earnings and cash flow, both of which increased year-over-year. Overall, SKECHERS U.S.A‘s second quarter earnings report was not as strong as investors had expected.
However, the company remains optimistic that it will be able to rebound from this situation over the long-term as the economy starts to recover and consumer spending begins to pick up. Investors should remain cautiously optimistic about the long-term prospects of the company’s stock and closely monitor future earnings reports for any signs of improvement. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Skechers U.s.a. More…
| Total Revenues | Net Income | Net Margin |
| 7.77k | 474.6 | 6.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Skechers U.s.a. More…
| Operations | Investing | Financing |
| 608.21 | -287.49 | -118.06 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Skechers U.s.a. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.11k | 2.92k | 24.81 |
Key Ratios Snapshot
Some of the financial key ratios for Skechers U.s.a are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 18.6% | 42.9% | 8.5% |
| FCF Margin | ROE | ROA |
| 3.4% | 10.9% | 5.8% |
Analysis
GoodWhale is here to analyze the financials of SKECHERS U.S.A. with the help of our Star Chart analysis. Based on our classification, SKECHERS U.S.A is a ‘gorilla’, a type of company that achieved stable and high revenue or earning growth due to its strong competitive advantage. This makes it an attractive investment option for investors looking for long-term returns. Additionally, SKECHERS U.S.A’s health score is 8/10, which indicates that it is capable of sustaining future operations in times of crisis, due to its strong cashflows and debt management. On the other hand, when it comes to dividend growth, SKECHERS U.S.A is comparatively weak. However, its strong asset growth, profitability, and stable earnings make it an attractive option for investors who want to invest in a solid company with a strong future potential. More…
Peers
In the world of sneakers and athletic footwear, there is stiff competition between brands. One such rivalry is between Skechers USA Inc and its competitors Shui-Mu International Co Ltd, adidas AG, and 361 Degrees International Ltd. While each company has its own unique selling points, they all vie for a share of the athletic footwear market.
– Shui-Mu International Co Ltd ($TWSE:8443)
Shui-Mu International Co Ltd is a company that operates in the real estate industry. The company has a market cap of 718.1M as of 2022 and a return on equity of -11.44%. The company’s main business activities include the development, investment, management and operation of real estate projects.
– adidas AG ($OTCPK:ADDDF)
adidas AG is a publicly traded company with a market capitalization of 18.54 billion as of 2022. The company has a return on equity of 16.07%. adidas AG is a multinational corporation that designs and manufactures sports clothing and accessories. The company is headquartered in Herzogenaurach, Germany.
– 361 Degrees International Ltd ($SEHK:01361)
Degrees International Ltd, a leading provider of online education services, has a market cap of 7.07B as of 2022. The company’s return on equity is 9.66%. Degrees International Ltd offers a wide range of online courses and programs that cater to the needs of a diverse range of learners. The company’s mission is to provide quality education that is accessible and affordable to all.
Summary
SKECHERS U.S.A reported strong financial results for the second quarter of fiscal year 2023, as total revenue increased 7.7% year-over-year and net income rose 69.0% from the same period in the prior year. Despite this impressive financial performance, the stock price moved down the same day. Investors should continue to monitor the company’s financial performance to assess the potential for long-term growth. Apart from financial results, SKECHERS U.S.A’s strategic initiatives, competitive landscape, and customer base should also be taken into account when making an investment decision.
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