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Skechers USA's Global Growth Can Take the Stock Higher

July 14, 2014 | About:

Skechers USA (NYSE:SKX) is a success story. The stock is doing impressively on the stock market, delivering fantastic results over time. With the future looking bright, Skechers USA is expecting more improvements in its business. Let us find out what Skechers USA has in store for investors going forward.

A look at the previous performance

Skechers’ quarterly results were outstanding. The company’s revenue grew a good 21%, reflecting its strong brand image and operational efficiencies. On the earnings front, Skechers USA surprised investors, posting a fantastic 190% increase in earnings per share.

Skechers’ biggest strength is the diversity of its products and the global acceptance of its footwear. Its cutting-edge quality has allowed it to expand its assortment of styles, creating a unified product message around the world. The company is moving smoothly, and with its exciting footwear product offerings, it is expecting even better results in the future.

Tailwinds in the cards

Skechers is seeing strong tailwinds in its business. The company is innovating its product line to include fresh innovative footwear styles that are resonating with customers. Its innovation has also led it to achieve remarkable results in the Skechers Performance Division, with two editorial awards in the first quarter for its Skechers GO running footwear. With this, Skechers’ brand image is getting stronger.

Moving on to specific segments, Skechers is focusing on adding more value to its men’s and women’s segments. In the past, Skechers USA has seen strong sales of Skechers USA sport men’s shoes. The company is expecting even stronger demand for these products in the future, adding more value to the product portfolio, delivering strong results in future consequently. The success of the products can be seen by the fact that SKECHERS GOrun Ride 3 received the best buy award from Runner's World, and the SKECHERS GOrun 3 the best value award from Competitor Magazine.

Impressive strategies

Moving ahead, Skechers has always been impressive with its marketing strategies. The company is focusing on accelerating its products and lifestyle-focused campaigns around the world with a view to create a global synergy between product and marketing.

On the international front, Skechers USA has been impressive. It has seen double digit growth in countries such as Europe, Canada, and Asia, including China, and many other regions. With these, the company is expecting positive trends to continue as the demand for the brand remains strong globally.

Seeing this, Skechers is focusing on expansion strategies, and is going to open its stores in many parts of the world such as the Philippines, Saudi Arabia, Malaysia, India, Taiwan, Costa Rica, Mexico, South Korea, Indonesia, Russia, Brazil, France, Wales, and Croatia.


Skechers USA has started off the new fiscal year well. On the back of double digit improvements in America and Europe, and joint ventures in Asia, Skechers is expecting international sales to grow, and deliver better financial results.

Skechers USA is presently trailing at a P/E of 27.89, which is reasonable. Also, the forward P/E of the company looks promising at 16.61. The recent results of the company indicate that it is doing well, and robust strategies mean that it can improve its performance further in the future, which makes it a buy.

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