Skechers USA Outperforms in Profit and Revenue Aspects
In the world of footwear and apparel, Skechers USA (NYSE: SKX) has been making strides, as evidenced by its latest financial results. The company reported its Q4 earnings on February 13, showing a significant improvement compared to the prior-year quarter.
The Q4 revenue for Skechers USA reached $395.6 million, surpassing analyst expectations of $338.7 million. This represents a 39% increase from the prior-year quarter's GAAP sales of $286.4 million. The gross margin for Q4 was 43.0%, significantly higher than the prior-year quarter's margin.
Operating margin for the quarter also saw a boost, standing at 2.0%, compared to the prior-year quarter's margin. Net margin for Q4 was 1.0%, significantly higher than the prior-year quarter's margin. As a result, the company reported a profit for Q4, a surprise as analysts had predicted a loss. EPS for Q4 was $0.08, compared to -$1.18 per share in the prior-year quarter.
On the bottom line, the average EPS estimate for next quarter is $0.29. The average EPS estimate for next year is $0.83, and next year's average estimate for Skechers USA's revenue is $1.76 billion. The average price target for Skechers USA, as tracked by S&P Capital IQ, is $23.00.
The strong performance has earned Skechers USA a favourable outlook from Wall Street. The average opinion on Skechers USA, as tracked by S&P Capital IQ, is outperform. This sentiment is reflected in the Motley Fool CAPS community, where 496 out of 523 members rate the stock as outperform, and among 158 CAPS All-Star picks, 150 give Skechers USA a green thumbs-up.
Behind the success of Skechers USA are its long-standing leaders, CEO and Chairman Robert Greenberg, who has been with the company since 1993 at the age of 85, and President Michael Greenberg, who joined in 1992 at the age of 62. Under their guidance, the company has seen strong improvements in revenue and earnings per share.
It's clear that Skechers USA is on an upward trajectory, and investors will be watching with interest as the company continues to grow and outperform expectations.
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