Skechers U.s.a Stock Intrinsic Value – SKECHERS Sees Top and Bottom Line Growth Through Direct-To-Consumer Strategy
June 24, 2023

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SKECHERS U.S.A ($NYSE:SKX) is an American footwear company that is leading the way in footwear innovation. The company has seen top and bottom line growth through their direct-to-consumer approach. This approach has been successful in bringing customers directly to the company, allowing them to benefit from more selection, better pricing, and increased convenience. In the past, SKECHERS U.S.A primarily relied on its network of global stores and third-party retailers to reach customers.
However, with the rise of ecommerce, the company has shifted their focus to a direct-to-consumer strategy. This has led to sales growth for the company, with both online and in-store sales increasing significantly from year to year. At the same time, the company has been able to leverage their direct-to-consumer approach to increase their bottom line. By cutting out third-party retailers and focusing on selling directly to consumers, SKECHERS U.S.A has been able to optimize its operations and generate more profit from each sale. This has allowed the company to reinvest in their business and further drive top and bottom line growth. By focusing on customer satisfaction and continuing to invest in their operations, the company is well-positioned for continued success in the future.
Market Price
SKECHERS U.S.A. has seen growth on both the top and bottom lines of their business, largely thanks to their direct-to-consumer (DTC) strategy. On Monday, SKECHERS stock opened at $51.6 and closed at the same price, down by 0.8% from the prior closing price of 52.0. This strategy has allowed SKECHERS to provide greater value to their customers by eliminating the middleman and giving them direct access to their products and services. This has enabled them to increase their product offerings, while also offering competitive pricing and superior customer service.
The strategy has also allowed them to expand their reach into new markets and find new customers. Overall, SKECHERS has seen positive growth on both the top and bottom lines of their business due to their DTC strategy. As they continue to refine and improve this strategy, it is likely that they will continue to see even more success in the future. 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 |
| 7.63k | 412.25 | 5.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Skechers U.s.a. More…
| Operations | Investing | Financing |
| 238.32 | -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 |
| 7.04k | 3k | 22.99 |
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 |
| 13.7% | 14.4% | 7.8% |
| FCF Margin | ROE | ROA |
| -1.6% | 10.2% | 5.3% |
Analysis – Skechers U.s.a Stock Intrinsic Value
We at GoodWhale have analyzed the financials of SKECHERS U.S.A. and have come to the conclusion that the fair value of its share is around $51.4. This valuation comes from our proprietary Valuation Line, which takes into account various factors such as recent sales performance, competitive landscape, and industry trends. At the time of writing, SKECHERS U.S.A stock is traded at $51.6, which is close to our estimated fair value. This suggests that the current market price reflects a balanced assessment of the company’s performance and outlook, and could be a good entry point for investors who are looking for a solid stock pick in the footwear sector. 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., Inc. is a leader in the lifestyle footwear industry with a focus on innovative products and strong performance in the global marketplace. This was accomplished through a shift to focus more heavily on online sales, expansion of physical stores, and increased sales of core product lines such as Skechers Memory Foam. Additionally, SKECHERS has successfully expanded into merchandising, apparel, and accessories and continues to invest in marketing campaigns and product innovation to maintain relevance in the marketplace. These investments should increase sales and margins in the future, generating returns for investors in the long-term.
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