Categories AlphaGraphs, Analysis, Retail

Skechers earnings preview: Wall St expects 13% jump in Q4 revenue

Shoemaker Skechers (SKX) will report fourth-quarter earnings results after the regular trading hours on Thursday, February 7. The company is expected to report a 13% increase in revenues to $1.1 billion.

The top line is expected to be boosted by strong demand for its products outside the domestic markets, primarily in China and Europe. Skechers has inked numerous partnerships and JVs to effectively deliver its products to key global markets.

Photo by Raka Rachgo on Unsplash

The company’s digital platform has also been slowly picking up and is expected to lift overall sales. However, only a part of this sales hike would be transferred to the bottom line as higher taxes and currency headwinds weigh on the results.

While the company management has given Q4 EPS guidance in the range of $0.20–0.25, analysts on an average expect earnings to be 23 cents per share.

During the earnings conference call, look out for management comments on the firm’s cost management strategies, besides its plan of action to boost international growth. Investors would also be interested to know what the company plans to do with its domestic wholesale business, which has been showing signs of weakness.

During the last reported quarter, revenue from the wholesale business fell 3% year-over-year.

SKECHERS USA third quarter 2018 Earnings Infographic

SKX stock has a 12-month average price target of $27.67, which is at a modest 1.6% upside from the last close. Therefore, even strong fourth-quarter results might keep a stock rally under check.

In Q3

In the last reported quarter, earnings declined modestly, but to a lesser extent compared to analysts’ forecast. The stock gained about 7% during the extended trading hours as the market responded positively to the results and upbeat outlook.

 

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference, and much more!

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

One thought on “Skechers earnings preview: Wall St expects 13% jump in Q4 revenue

  1. Pingback: viagra online

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top