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On Monday, UBS analyst Jay Sole adjusted the price target for Skechers USA (NYSE:SKX) to $64 from the previous $65 while continuing to endorse the stock with a Buy rating. According to InvestingPro data, Skechers currently trades at an attractive P/E ratio of 11.8 and shows strong financial health metrics. Sole’s assessment follows a careful examination of the company’s first quarter performance in 2025, which he described as "mostly solid." Nonetheless, the recent announcement of US tariffs may compel Skechers to revise its full-year 2025 earnings per share (EPS) guidance downwards substantially.
Sole anticipates that Skechers may reduce its EPS guidance by $0.50 to $1.00. He also acknowledged the uncertainty surrounding the exact adjustment of the guidance, noting that it could vary more or less than the expected range. The lack of clarity regarding investor expectations was highlighted as a factor contributing to a balanced risk-reward scenario surrounding the upcoming guidance update. With analyst price targets ranging from $50 to $94, InvestingPro subscribers can access detailed analysis and 7 additional key insights about Skechers’ future prospects.
The UBS analyst pointed out that Skechers’ stock typically experiences a movement of plus or minus 10.1% around the time earnings are announced. Given the current circumstances, Sole suggested that the stock could see higher-than-normal volatility in response to the earnings update and the impact of the new tariffs.
Sole’s commentary underscores the potential challenges and market reactions that Skechers might face in the near future. The revised price target reflects a nuanced view of the company’s prospects, considering both the solid fundamentals observed in the recent quarter and the external economic pressures that could affect its financial outlook. The company has demonstrated strong performance with 12.1% revenue growth over the last twelve months, maintaining a healthy current ratio of 1.97 and moderate debt levels.
In other recent news, Skechers USA has been the focus of several analyst reports highlighting its financial performance and potential. UBS maintained its Buy rating on Skechers with a slightly lowered price target of $90, citing robust demand and a strong global presence despite foreign exchange challenges. UBS projects a 13% compound annual growth rate in earnings per share over the next five years. Evercore ISI also kept its Outperform rating, with a $78 price target, noting potential gross margin pressures but expressing confidence in the company’s stock performance.
Stifel reiterated a Buy rating with an $80 price target, emphasizing Skechers’ strategic positioning and growth prospects in international markets. Barclays (LON:BARC) adjusted its price target to $77 from $80 while maintaining an Overweight rating due to anticipated financial adjustments, including lower sales forecasts and increased costs. The adjustments reflect external pressures such as currency fluctuations and tax considerations. These developments underscore analysts’ varied assessments of Skechers’ financial outlook and market potential.
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