SKX

Skechers USA Inc

Consumer


Presented:05/17/2018
Price:$30.24
Cap:$4.77B
Current Price:$63.17
Cap:$9.62B

Presented

Date05/17/2018
Price$30.24
Market Cap$4.77B
Ent Value$5.65B
P/E Ratio23.44x
Book Value$12.43
Div Yield0%
Shares O/S157.63M
Ave Daily Vol3,279,144
Short Int5.71%

Current

Price$63.17
Market Cap$9.62B
SKECHERS USA, Inc. is engaged in designing, development and marketing of lifestyle footwear that appeals to men, women and children of all ages. It operates its business through three segments: Domestic Wholesale Sales, International Wholesale Sales and Retail Sales. The Domestic Wholesale Sales segment distributes footwear through the domestic wholesale distribution channels: department stores, specialty stores, athletic specialty shoe stores and independent retailers, as well as catalog and internet retailers. The International Wholesale Sales segment products are sold throughout the world. Its product offering, diversified domestic and international distribution channels, and targeted multi-channel marketing. The company has two distinct footwear categories: a lifestyle division that includes the charity line BOBS from SKECHERS, and a fitness division that now includes SKECHERS GOrun, SKECHERS GOwalk, and SKECHERS GOplay performance footwear. The company was founded by Robert Greenberg in 1992 and is headquartered in Manhattan Beach, CA.

Publicly traded companies mentioned herein: DSW Inc (DSW), Nike Inc (NKE), Kohl’s Corp (KSS), Skechers U.S.A. Inc (SKX), Under Armour Inc (UAA)

Highlights

The presenter is long shares of Skechers (SKX) and sees strong growth from international sales (i.e. China), a growing US retail footprint, and other initiatives that will help SKX reach its goal of increasing revenues from $4.5B today, to $6B by 2020. He believes current levels are an attractive entry point following the recent 30% sell-off, which he believes was due to poor management communication that lead to misaligned street expectations. The presenter thinks SKX will reach its goal and without any margin expansion, sees EPS increasing from $2 today to $3.25-3.50. with the stock currently trading at 15x earnings, he sees it reaching $49-50 for ~60% upside.

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Idea Discussion

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