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 emerging in the international climate, but if these don’t escalate, we think the shares will slowly recover.
- While most of the disappointments was because of ongoing investment in growth, there were also some other factors at work like higher taxes.
Source: SHU Portfolio; And Another Buying Opportunity In Skechers – Skechers USA Inc. (NYSE:SKX) | Seeking Alpha
Tags: SHU Portfolio · SKX