Skechers: 3rd Straight Blowout Earnings Report Coming Wednesday
Tansy Trading • 18 Comments
Tansy Trading • 18 Comments
Skechers Crushes Q1 Earnings: Analysts Still Asleep
Fri, Jul. 22, 12:40 PM
Fri, Jul. 22, 12:00 PM
Fri, Jul. 22, 10:13 AM
- A weak earnings report from Skechers (SKX -22%) and a warning from VF Corp (VFC -2.8%) is taking down a number of peers of the apparel sellers.
- Soft demand in Asia, disruption in Europe, and continued F/X headwinds were cited by both companies.
- Oxford Industries (OXM -2.1%), Wolverine World Wide (WWW -2.6%), Crocs (CROX -2.9%), Steven Madden (SHOO -1.8%), and G-III Apparel Group (GIII -2.3%) are all lower.
- The negative start to the earnings season for the apparel/footwear sector appears to be impacting Nike (NKE -0.8%) and Under Armour (UA -0.9%) as well.
- Previously: Skechers -8% after missing Q2 expectations (July 21)
- Previously: V.F. beats by $0.01, misses on revenue (July 22)
Fri, Jul. 22, 9:11 AM
Thu, Jul. 21, 5:34 PM
Thu, Jul. 21, 4:11 PM
- Skechers (NYSE:SKX) reports its gross profit rate improved 60 bps to 47.4% in Q2. Operating earnings fell to 11.4% of total sales from 14.0% a year ago.
- Total inventories decreased 5% from December 31, 2015, and increased 26% June 30, 2015
- Company-owned Skechers retail sales increased 15.4%. Strong growth was recorded in the international business, +35% for the international subsidiary and +41% for international company-owned stores.
- The effective tax rate in Q2 fell due to a higher mix of sales from China.
- Previously: Skechers misses by $0.04, misses on revenue (July 21)
- SKX -8.33% AH to $29.50
Thu, Jul. 21, 4:03 PM
Wed, Jul. 20, 5:35 PM
Tue, Jul. 12, 8:01 AM
- Adidas (OTCQX:ADDYY) filed a lawsuit against Skechers (NYSE:SKX) over the design of the company's Mega Flex shoe. The legal action maintains the shoes infringes on the Springblade concept from Adidas.
- It's not the first legal tussle between the two shoe sellers. Last year, Adidas sued Skechers over stealing the design of the retro Stan Smith tennis shoes.
Mon, Jul. 11, 7:17 AM
- Skechers (NYSE:SKX) completed the 4th phase of an expansion to its European Distribution Center in Belgium.
- “To meet the increased demand, we are investing in our infrastructure, including improved efficiencies in our European Distribution Center, which allowed us to achieve a record 3 million pairs shipped in a month during February and 8.1 million pairs for the first quarter of 2016,” began David Weinberg, chief operating officer and chief financial officer of SKECHERS. “With the completion of our European Distribution Center expansion and with the automation to be fully completed later this year, we expect to be even more efficient in our largest market outside of the United States and prepared for continued growth in Europe.”
- “After outgrowing our storage capacity, we had to manage overflow beyond our facility and this new building will allow us to consolidate storage into the EDC and stabilize our logistics to meet growing needs of the European market over the longer term,” began Sophie Houtmeyers, SKECHERS EDC Vice President of Distribution Operations. “This added storage capacity also opens up space in one of our adjoining buildings for the installation of new automation technologies that have improved efficiency elsewhere in our facility. We expect these upgrades to be online by November of this year and when combined with the expansion will prepare us for the future.”
- Press Release
Wed, Jun. 29, 7:24 AM
Mon, May 23, 10:27 AM
- The U.S. footwear industry is expected to be big winner from the Trans-Pacific Partnership trade agreement, according to analysis from the U.S. International Trade Commission.
- U.S. footwear imports are expected to increase by 2.7% or $1.1B vs. the 2032 baseline growth estimate, with the bulk coming from Vietnam at the expense of China.
- Exports from the U.S. are seen increasing 12.2% as more parts are sent to Vietnam for final assembly.
- TPP is anticipated to have a positive impact on U.S. output and footwear-related employment levels.
- Footwear is the sector with the largest positive benefit from reduced tariffs in what could be a favorable development for margins.
- Full U.S. ITC report (.pdf)
- Related footwear stocks: DSW, SHOO, FINL, FL, UA, SCVL, UA, NKE, OTCQX:ADDYY, DECK, WWW, SKX.
Wed, Apr. 27, 10:55 AM
Fri, Apr. 22, 9:13 AM
Thu, Apr. 21, 5:39 PM
Thu, Apr. 21, 4:09 PM
- Skechers (NYSE:SKX) was able to benefit off some sales leverage in Q1. The company's gross profit rate improved 90 bps to 44.2%, while the net earnings rate rose 270 bps to 14.2%.
- Sales in the international wholesale business were up 47% Y/Y during the quarter.
- The company says inventory is in line with growth levels.
- Looking ahead, Skechers sees Q2 sales of $875M to $900M, shy of the consensus mark of $914M.
- Previously: Skechers beats by $0.09, beats on revenue (April 21)
- SKX +6.49% AH to $32.80.
SKECHERS USA, Inc., is the lifestyle footwear industry, which engages in designing, developing and marketing lifestyle footwear that appeals to men, women and children of all ages. The company operates its business through four segments: Domestic Wholesale Sales, International Wholesale Sales,... More
Sector: Consumer Goods
Industry: Textile - Apparel Footwear & Accessories
Country: United States
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