Skechers U.S.A. (SKX) is well positioned to benefit through a sustained focus on new products, opening of new retail stores and distribution channels, and a multi-brand strategy.
A healthy balance sheet and in-demand inventory position it to capitalize on future growth opportunities. Further, the company’s international business provides an enormous second leg of growth, in our opinion. The company’s domestic wholesale business also regained its lost momentum.
With strong sales growth and healthy gross margins in fourth-quarter 2009, management expects the growth to continue in fiscal 2010. We upgrade our recommendation to Outperform and set a target price of $37 per share.Zacks Investment Research