Report
Valens Research

SKX - Embedded Expectations Analysis - 2020 06 12

Skechers U.S.A., Inc. (SKX:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 21.2x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about their online market share, inventory production, and their product management

Specifically, management is confident they are among the top 3 purchased footwear brands online across their wholesale partners and that they are building a $500mn running rate through April. In addition, they are confident they have day-to-day flexibility with factories to ramp-up or ramp-down inventory production and that building the correct product for the correct time is part of their core competency
Underlying
Skechers U.S.A. Inc. Class A

Skechers USA designs and markets Skechers-branded lifestyle footwear for men, women and children, and performance footwear for men and women under the Skechers Performance brand name. The company also designs and markets men's and women's Skechers branded lifestyle apparel, and license the Skechers brand to others for accessories, leather goods, eyewear and scrub manufacturers, among others. The company's product offering is sold through department and specialty stores, athletic and independent retailers, boutiques and internet retailers. In addition to wholesale distribution, the company's footwear is available at its direct-to-consumer websites and its own retail stores.

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Valens Research
Valens Research

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