SKECHERS USA, Inc. (SKX) already announced it would post record revenue for the fourth quarter which has pushed the Zacks Consensus Estimates higher. The stock has attractive value characteristics, trading at 14.96x forward earnings.
Company Description
SKECHERS sells footwear for men, women and children via department stores, specialty stores, its own SKECHERS retail stores and its e-commerce web site. It also sells internationally through distributors across Europe, Canada, Brazil and Chile.
SKECHERS to Post Record Revenue
On Jan 12, SKECHERS pre-announced its fourth quarter 2009 revenues and earnings per share results. It expects record revenue in excess of $385 million, far above the $298.1 million in the year ago period. Earnings per share are forecast to be over 50 cents.
The record fourth quarter comes on the heels of a record third quarter where SKECHERS surprised on the Zacks Consensus Estimate by 52.94%. Sales hit a new record high in the third quarter.
Earnings per share in the third quarter of 2009 were 52 cents compared to the Zacks Consensus of 34 cents.
The company’s quarter was again boosted by inventory control as well as new trendy products that caught on with consumers.
Zacks Consensus Estimates Jump Ahead of the Earnings Report
SKECHERS believes that the momentum from 2009 will carry over into 2010 based on backlog and comparable store sales.
Analysts like what they’ve heard. The fourth quarter Zacks Consensus Estimate has climbed to 54 cents, above the company’s guidance of at least 50 cents.
The 2009 Zacks Consensus Estimate rose 19.7% to 91 cents from 76 cents in the last 30 days.
But the real gains are expected in 2010. Analysts expect earnings growth to jump by 106.61%.
Two estimates for 2010 have moved higher in the last 30 days as the Zacks Consensus has jumped 20.5% to $1.88 from $1.56 per share.
SKECHERS is scheduled to report earnings fourth quarter and full year results on Feb 17.
Value Fundamentals
SKECHERS is a Zacks #1 Rank (strong buy) stock. It is trading with a price-to-book ratio of 1.82. SKECHERS has a solid 5-year average return on equity (ROE) of 11.52%.
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service.
