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Skechers Will Rise Again 

September 20th, 2020 · Comments Off on Skechers Will Rise Again 

Sketchers had a terrible quarter, which was no surprise. The surprise was that they did considerably better than expected. In the short-run, the shares are likely to move on the ebb and flow of the pandemic, but the financial position of the company is very sound. With the view of a not-too-distant pandemic-free future, the […]

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Tags: SKX

Leverage Is Starting To Kick In At Skechers

July 28th, 2019 · Comments Off on Leverage Is Starting To Kick In At Skechers

The company has delivered stellar Q2 results with a large earnings beat as a result of operational leverage and a good reception of the new collections. Pricing and really good same store sales provided additional benefits, with only the domestic wholesale segment declining — though less than feared. The future looks bright as domestic wholesale […]

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Tags: SKX

Skechers’ Future Still Looks Good To Us 

April 22nd, 2019 · Comments Off on Skechers’ Future Still Looks Good To Us 

The company suffered from a slowdown in its domestic wholesale business and currency headwinds in its international business, producing disappointing growth figures. However, margins and especially cash flow have strengthened considerably and the company’s balance sheet remains terrific. Growth is likely to accelerate in H2 and the shares aren’t expensive, in our view. Source: Skechers’ […]

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Tags: SKX

Takeaways From The Skechers Quarter

October 24th, 2018 · Comments Off on Takeaways From The Skechers Quarter

While it’s always a little hard to see the forest through the trees, given that the company has so many moving parts, we think the overall picture is still attractive. While international growth is slowing down, there is still plenty of that left, and even domestic performance has still mileage. We like the company especially […]

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Tags: SKX

SHU Portfolio; And Another Buying Opportunity In Skechers

July 23rd, 2018 · Comments Off on SHU Portfolio; And Another Buying Opportunity In Skechers

Management prefers growth over margins, and they are right to do so and can easily invest in growth, given their extremely solid balance sheet and cash generation. Yet, they haven’t fulfilled their last year’s prediction that this year operational margins would recover, and investors are paying a price for that. There are also some risks […]

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Tags: SHU Portfolio · SKX

Are Investors Excessively Punishing Companies That Invest In Growth At The Expense Of Margins?

April 25th, 2018 · Comments Off on Are Investors Excessively Punishing Companies That Invest In Growth At The Expense Of Margins?

While not a systematic inquiry, we nevertheless spot quite a few companies whose shares get punished for investing when that results in some margin decline. With investment the cost gets in front of the benefits, so this will produce situations in which time will rectify the problem. This is especially the case with companies with […]

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Tags: BZUN · GOOG · JD · SKX

SHU Portfolio: Buy Skechers Again

April 24th, 2018 · Comments Off on SHU Portfolio: Buy Skechers Again

Shares in Skechers have sold off big time on rising cost and a soft Q2 outlook. But much of the cost rise is due to investments in growth, which the company keeps delivering, and one-off factors. The soft quarter seems mostly a timing issue according to management although their credibility has taken a bit of […]

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Tags: SKX

Skechers: Can It Leverage Up?

April 2nd, 2018 · Comments Off on Skechers: Can It Leverage Up?

Skechers produced another solid quarter with very strong sales growth and stellar same store sales increases. The shares are consolidating, which is to be expected after the strong rally. We think this offers a nice opportunity for those that missed the initial rally. As we think there is room for margin expansion, increased cash flow […]

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Tags: SKX

Skechers: Acquire On Weakness

October 30th, 2017 · Comments Off on Skechers: Acquire On Weakness

While Skechers shares jumped 40% on a single day after very good third quarter results, they might have to digest that jump a little. However, the shares are still very reasonably valued and there are multiple potential drivers taking it higher. We would recommend aggressive buying on softness. Source: Skechers: Acquire On Weakness – Skechers […]

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Tags: SHU Portfolio · SKX

SHU Portfolio: Skechers Is Remarkably Cheap

October 12th, 2017 · Comments Off on SHU Portfolio: Skechers Is Remarkably Cheap

No retail apocalypse for Skechers. Its US stores revenues are up 14.5% with same store sales up a whopping 7.7%. Its international business is also booming, and after heavy investments this year, that will show off on the bottom line next year. Yet the shares went down after the Q2 good news show, except the […]

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Tags: SHU Portfolio · SKX