Skechers: Top And Bottom Line Growth Via Direct-To-Consumer Strategy

Summary

• Skechers has been growing its market share in the competitive footwear industry through value-oriented pricing and direct-to-consumer sales, with a stock price increase of 12.46% and a five-year return of 77.08%.
• The company's financials show record-high quarterly sales of $2 billion, a YoY increase of 10%, and improved balance sheet with total cash of $930.3 million, while its valuation ratios suggest potential undervaluation compared to peers.
• Risks to consider include the highly competitive nature of the footwear industry, potential impact of trade tensions between the USA and China, and the company's negative free cash flow for the past four financial years.

Pe3check

Through its value-orientated pricing strategy and focus on direct-to-consumer infrastructure, Skechers U.S.A., Inc. (NYSE:SKX) has increasingly been growing its market share position in the highly competitive footwear industry while improving its top and bottom line fundamentals.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.