Ahead of Skechers’ fourth-quarter release next week, analysts are upgrading footwear inventory as inventory levels off and sales momentum continues.
Cowen analyst John Kernan outperformed the stock in a note Monday, saying Skechers is the second most popular casual sneaker brand in the U.S., with a 19% preferred market share behind Nike at 24%. said. The analyst added that his website traffic for Skechers has increased by 38% compared to last year, according to data from Similarweb.
MORE FROM FOOTWEAR NEWS
“Skechers’ value proposition continues to resonate based on our checks and favors in our survey of casual/lifestyle footwear from Nike and Adidas,” writes Kernan. He added that he expects inventories to slow in the fourth quarter and normalize in 2023.
In October, Skechers said it expects fourth-quarter sales of $1.725 billion to $1.775 billion and diluted earnings per share of 30 cents to 40 cents. This comes after the company reported third-quarter sales of $1.88 billion, up 20.5% from a year earlier.
Williams Trading analyst Sam Poser said in a note last week that the company is in a strong position to meet those targets in the fourth quarter, with room for further growth by the second quarter of 2023. said.
“Any product category, gender or gender, the demand for Skechers is Poser noted the positive response to the company’s hands-free slip-in footwear technology and children’s products. “It’s important to remember that Skechers sells well in many product categories, including athletic, casual, work and kids.”
Poser also wonders how he will profit from his prediction that Skechers will run out of stock in the market in the fall of 2022 as more retailers adopt conservative buying plans given the overstock. I also mentioned the possibility of getting
“Skechers has the most efficient supply chain of any of our coverage, has brought in a large amount of spring 2023 orders early, and will be well positioned to meet increased demand,” Poser said. says. The reopening in China, a weaker dollar and strength in other international markets will also boost Skechers’ global business, he notes Poser.
Longer term, Skechers aims to reach $10 billion in annual revenue by 2026. In 2022 he won FN’s Company of the Year award for his 30-year-old business, which grew three consecutive quarters last year and grew 20%. First nine months of 2022.
best of footwear news
Sign up for FN’s newsletter. Follow us on Facebook, Twitter, and Instagram for the latest news.
Click here to read the full article.
