On Feb 15, 2013, Zacks Investment Research upgraded
Skechers U.S.A., Inc.
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Skechers has been witnessing rising earnings estimates on the
back of better-than-expected fourth-quarter 2012 results reported
on Feb 13, 2013. The quarterly earnings came in at 8 cents a
share that fared significantly better than a loss of 54 cents
delivered in the prior-year quarter and the Zacks Consensus
Estimate of a loss of 11 cents on the back of growth witnessed
across domestic wholesale, international, and company-operated
Including the recent concluded quarter, this designer,
developer and distributor of footwear and apparel has delivered
positive earnings surprises in 5 of the last 7 quarters with an
average beat of 110.8%.
Skechers is now showing signs of stability as evident from its
fourth quarter results. With more emphasis on a new line of
products, increased backlog, cost containment efforts, inventory
management and margin improvement, the company anticipates
sustaining growth momentum in 2013. We believe Skechers, through
its distribution networks, subsidiaries and joint ventures is
poised to enhance its global reach in the footwear market.
Following the sturdy results, the Zacks Consensus Estimates
for 2013 and 2014 increased by 14.1% and 8.1% to 97 cents and
$1.34, respectively, in the last 30 days.
Other Stocks to Consider
The stock worth considering in the apparel industry is
Michael Kors Holdings Limited
), which holds a Zacks Rank #1 (Strong Buy). Other stocks that
should be merited include
), both of which carry a Zacks Rank #2 (Buy).
ADIDAS AG-ADR (ADDYY): Get Free Report
GUESS INC (GES): Free Stock Analysis Report
MICHAEL KORS (KORS): Free Stock Analysis
SKECHERS USA-A (SKX): Free Stock Analysis
To read this article on Zacks.com click here.