SKX - Embedded Expectations Analysis - 2021 08 13
Skechers U.S.A., Inc. (SKX:USA) currently trades above recent averages relative to UAFRS-based (Uniform) earnings, with an 18.5x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, and management is confident about ASP growth, their e-commerce business, and domestic and international revenues improvements.Specifically, management is confident growth in their average selling price (ASP) benefited themselves and their wholesale partners poor e-commerce performance this quarter was an anomaly given its growth potential, and there will be adjustments in part-time labor rates to attract new talent. In addition, they are confident record revenues were the result of increased sales in both their domestic and international businesses, that their European operations was a significant contributor to their subsidiary line, and their distribution center in China is now fully operational.
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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