Skechers USA, Inc.
) recorded a new 52-week high of $23.14 yesterday, before closing
at $22.81, and rising approximately 25% year to date. Based on
the current price, Skechers is 9.5% below the Zacks Consensus
average analyst price target of $25.20.
Moreover, it currently trades at a forward P/E of 24.1x, a
32.4% premium to the peer group average of 18.25x.
Skechers posted first-quarter 2013 earnings of 13 cents a
share, marking a significant improvement from the loss of 7 cents
delivered in the prior-year quarter on the back of growth
witnessed across domestic wholesale, international,
company-operated retail businesses and e-Commerce operations.
Moreover, this Zacks Rank #3 (Hold) stock, which competes with
Deckers Outdoor Corporation
), registered a 28.6% rise in total sales to $451.6.
With more emphasis on the new line of products, cost
containment efforts, inventory management and global distribution
platform, the company anticipates sustaining its growth momentum
Skechers hinted at significant growth in the third quarter in
comparison to the second quarter due to early Easter on Mar 31
this year, and back-to-school deliveries going into the third
quarter of 2013.
Management remains committed to opening additional Skechers
stores and increasing distribution channels with the development
of international distribution agreements to boost its sales and
profitability. Moreover, international business remains a
significant growth driver for the company's sales. Skechers,
through its distribution networks, subsidiaries and joint
ventures, is poised to enhance its global reach in the footwear
Other Stocks to Consider
There are certain other stocks in the consumer discretionary
sector that warrant a look. These include
Iconix Brand Group, Inc.
Big 5 Sporting Goods Corp
), both carrying a Zacks Rank #1 (Strong Buy).
BIG 5 SPORTING (BGFV): Free Stock Analysis
DECKERS OUTDOOR (DECK): Free Stock Analysis
ICONIX BRAND GP (ICON): Free Stock Analysis
SKECHERS USA-A (SKX): Free Stock Analysis
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