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Looking ahead, Evercore ISI remains optimistic about the brand's prospects in the second half of 2025. The analyst anticipates that by that time, the Chinese athletic industry will have a cleaner inventory position with less discounting. This environment is expected to create opportunities for value-for-money brands like Skechers to resume growth in China. With a market capitalization of $11.33 billion and a P/E ratio of 18.1, Skechers shows strong fundamentals. The firm reaffirmed its Outperform rating, indicating confidence in Skechers' performance despite the current regional disparities. For deeper insights into Skechers' valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
The research firm's analyst noted that channel checks indicated strong sales for Skechers during the holiday season in the Americas. This aligns with the company's solid financial performance, showing 10.1% revenue growth and maintaining healthy profit margins. Additionally, the brand is reportedly gaining momentum in Europe with its new performance categories. Despite these positive trends, the analyst expressed caution regarding the brand's performance in China, where weakness seems to have continued despite management's suggestions of an improvement or bottoming out in the region.
Evercore ISI highlighted that management had been communicating signs of recovery in China during recent conferences and meetings with the buy-side. Investors are expecting sequential improvement in the fourth quarter compared to the third. However, the firm's own checks suggest that Skechers still faces headwinds in the Chinese market.
Looking ahead, Evercore ISI remains optimistic about the brand's prospects in the second half of 2025. The analyst anticipates that by that time, the Chinese athletic industry will have a cleaner inventory position with less discounting. This environment is expected to create opportunities for value-for-money brands like Skechers to resume growth in China. With a market capitalization of $11.33 billion and a P/E ratio of 18.1, Skechers shows strong fundamentals. The firm reaffirmed its Outperform rating, indicating confidence in Skechers' performance despite the current regional disparities. For deeper insights into Skechers' valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Skechers has seen significant developments, starting with a strong performance in the third quarter of 2024, recording sales of $2.35 billion, a 16% increase from the previous year. The company's earnings per diluted share also increased by 35%, driven by a 21% surge in wholesale operations and a 9.6% increase in Direct-to-Consumer sales. Despite challenges in China, Skechers experienced substantial growth in international markets, now accounting for 61% of total revenue.
Several analyst firms have adjusted their outlooks for Skechers. TD Cowen revised the company's price target upward, signaling confidence in its continued growth. Piper Sandler initiated coverage on Skechers, assigning a Neutral rating due to potential challenges in the China market and inventory concerns. Williams Trading also showed confidence in Skechers, adjusting their stock price targets upward and maintaining Buy ratings.
Skechers has also amended its bylaws to allow the issuance of uncertificated shares, aligning with a growing trend among companies to streamline transactions and reduce administrative burdens. This change does not affect the rights or privileges of shareholders, but eliminates the need for physical certificates. These are recent developments that highlight Skechers' strong financial performance and the confidence of various analyst firms in the company's future prospects.
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