Skechers U.S.A. misses earnings expectations for Q3

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Skechers ($NYSE:SKX) U.S.A. is an American footwear company headquartered in Manhattan Beach, California. Despite the miss in Q3, Skechers remains optimistic about the future. “We are pleased with the overall performance of our business in the third quarter as we delivered double-digit percentage increases in our international and e-commerce businesses,” said David Weinberg, Skechers’ Chief Operating Officer and Chief Financial Officer. “Our continued focus on driving profitable sales growth, coupled with strict expense discipline, resulted in another quarter of margin expansion.”

Earnings

The company also reported net income of $717.2 million, a decrease of 3.3% from the previous year. The company attributes this growth to strong performances in its international and e-commerce businesses. Looking forward, SKECHERS U.S.A. is optimistic about the rest of the year and expects to see continued growth in both its top and bottom lines.

Price History

Investors were disappointed with Skechers U.S.A.’s earnings for the third quarter, as the company missed expectations. So far, news sentiment has been mostly negative. On Tuesday, Skechers U.S.A. stock opened at $34.60 and closed at $35.90, up by 3.6% from the prior closing price of $34.70.

VI Analysis

Company’s fundamentals reflect its long term potential, below analysis on SKECHERS U.S.A are made simple by VI app. According to VI Star Chart SKECHERS U.S.A has a high health score of 8/10 considering its cashflows and debt, is capable to sustain future operations in times of crisis. SKECHERS U.S.A is strong in asset, growth, profitability, and weak in dividend. SKECHERS U.S.A is classified as ‘gorilla’, a type of company that achieved stable and high revenue or earning growth due to its strong competitive advantage.

What type of investors may interested in such company? Investors interested in gorillas are looking for companies with a strong competitive advantage that can generate stable and high growth.

VI 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. is a leading footwear company that designs, develops, and markets a range of footwear for men, women, and children. The company offers a wide variety of shoes, including athletic shoes, casual shoes, and dress shoes. Skechers U.S.A. also offers a line of accessories, such as socks and shoe care products. Investing in Skechers U.S.A. can be a good way to gain exposure to the footwear industry. The company has a strong brand and a diversified product line. Skechers U.S.A. also has a strong presence in the United States, which is the largest market for footwear.

However, there are some risks to consider before investing in Skechers U.S.A. The company is highly dependent on the U.S. market, and any slowdown in the U.S. economy could negatively impact Skechers U.S.A.’s business.

Additionally, the footwear industry is competitive, and Skechers U.S.A. faces competition from both domestic and international competitors.