Does humanity really buy more performance footwear coinciding
with major sporting events like the World Cup and Olympics?
Apparently, yes. Projections are that global footwear is
anticipated to reach $51 billion by 2017, thanks to consumer push
inspired by major sporting events ahead, both in Brazil: the
World Cup in 2014 and the Olympics in 2016. Asia is also
forecasted to have the highest growth in athletic footwear retail
in the next five years with household incomes on the rise.
With about a year before the FIFA World Cup, SAC Capital
increased his position in global shoemaker Skechers USA Inc. (
) by 265.1% as of April 4, 2013. This brings the billionaire
investor's total shares to 2,011,532. The current share price is
$21.51 with a change from average up 2%. GuruFocus research shows
that SKX is up 71% over the last 12 months, and up 18% since
Skechers USA Inc. has a market cap of $1.07 billion. The P/E
ratio is 113.8 and the P/B is 1.2.
Cohen's holding history shows an average cost of $16 per share,
with a 34% gain over the long haul since fourth quarter 2008:
Skechers USA Inc. is a global leader in footwear, featuring
casual and high-performance brands. The company designs, makes
and markets more than 3,000 styles for men, women and children.
Internationally, the company also sells its footwear in Canada,
the UK, Ireland, France, Germany, Spain, Portugal, Italy,
Switzerland, Austria, the Benelux region, Brazil, Chile and
Japan, and has joint ventures with companies in China, Hong Kong,
Malaysia, Singapore and Thailand. With the upcoming world
sporting events as a macro booster for selling more athletic
shoes, the company's extensive network of global distributors is
poised to sell products in over 120 countries and territories,
and more than 650 Skechers stores around the world. Skechers
competes in the athletic footwear industry against much larger
companies Nike (
) and Adidas (
), as well as K-Swiss (
), all focused on building brand and cutting production costs to
Another company plus, Skechers is also expanding its global
business through licensing agreements for fitness and kids'
apparel, bags, watches, eyewear and additional merchandise.
Will the well-loved global sporting events put a lot more shoes
on a lot more feet? Only the Gurus know.
Breaking news: Today Skechers announced that its accounting firm
KPMG resigned yesterday. According to a company press release,
"Skechers was informed by KPMG that KPMG's lead Audit Engagement
Partner on the Skechers account is under federal investigation
for providing non-public information of his clients to a third
party in exchange for money. The third party then used that
information to trade stocks of several West Coast companies."
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