Skechers - Improving Quality Of Growth

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About: Skechers U.S.A., Inc. (SKX)
by: Kenra Investors
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Kenra Investors
Value, long-term horizon, research analyst, contrarian
Summary

Skerchers' aggressive growth and store expansion strategy has raised some skepticism from investors.

Since Q1 2016, Skechers has expanded the number of stores by 134% from 1410 to 3307 vs. a 48% increase in revenue, highlighting a sharp deterioration in revenue per store.

I analyze the impact of Skechers' expansion strategy on some key performance metrics.

Skechers' (SKX) stock has recently approached the 2018 highs after two quarters of strong performance. Some of the concerns that investors have are related to Skechers’ aggressive growth and store expansion strategy. Investors