Published on 11 Dec 2023 on Zacks via Yahoo Finance
Skechers (SKX) to Benefit From Business Strength Amid Risks
Skechers U.S.A., Inc. SKX has been benefiting from its robust business strategies. The company remains committed to enhancing its omni-channel capabilities by expanding its direct-to-consumer (“DTC”) business and improving its foothold internationally. The company’s DTC sales increased 23.8% year over year in the third quarter of 2023, following 29.1% growth in the preceding quarter. Results gained from strength in brands and demand for comfort technology products, aided by solid marketing and distribution capabilities.The company has also been directing its resources to boost its digital capabilities, including augmenting website features, mobile applications and loyalty programs. The implementation of omnichannel features, such as "Buy Online, Pick-Up in Store" and "Buy Online, Pickup at Curbside," reflects the company's commitment to improving customer engagement.Skechers also remains focused on expanding its physical presence. For instance, SKX opened 72 company-owned stores in the third quarter, with a focus on China and other markets. The company's international business continues to exhibit solid momentum, with international sales accounting for 61% of overall sales in the third quarter. Sales in the EMEA and APAC regions increased by 2.3% and 14.4%, respectively, on a year-over-year basis.Impressively, the company’s 2023 outlook reflects sales momentum across most businesses. For 2023, management projects sales between $7.95 billion and $8.05 billion and earnings per share between $3.33 and $3.43. These figures show an improvement from sales of $7.44 billion and EPS of $2.38 registered in 2022.
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