![]() ![]() Ralph Lauren, a footwear and accessories dealer, has a Zacks Rank #1 (Strong Buy) at present. Here we have highlighted three top-ranked stocks, namely, Ralph Lauren RL, Oxford Industries OXM and Deckers DECK. A VGM Score of B further speaks volumes for this Zacks Rank #3 (Hold) stock. For 2023, management believes in accomplishing sales between $7.75 billion and $8 billion and earnings per share between $2.80 and $3.00. A China market recovery with a steady improvement in the course of the year, better distribution operating efficiency on enhanced capacity and remediation endeavors are tailwinds.Īlso, the gross margin is likely to benefit from lower logistics costs mainly in freight. ![]() The company’s 2023 outlook reflects sales momentum across most of the company’s international markets throughout the year. Wrapping up, Skechers is likely to continue performing well on the back of such sturdy endeavors. Region-wise, sales increased 22.5% year over year to $925.6 million in the Americas and 28.9% to $413.7 million in EMEA. In fourth-quarter 2022, international sales increased 8.7% year over year. SKX is poised to enhance its global reach in the footwear market through its distribution networks, subsidiaries and joint ventures. DTC volumes also jumped 14.8% year over year.įurthermore, Skechers’ international business remains a significant sales growth driver for the company. DTC sales jumped on growth of 27% in AMER and 19.1% in EMEA. However, excluding China, sales rose 22% on double-digit increases across the company’s stores and online. International DTC sales were flat year over year owing to a decline in China. Both these channels gained from solid inventory levels. This is backed by 30% growth domestically with a triple-digit increase in e-commerce and a double-digit increase in retail stores. Initiatives such as “Buy Online, Pick-Up in Store” and “Buy Online, Pickup at Curbside” are worth mentioning.ĭuring the fourth quarter of 2022, Skechers’ DTC sales grew 10.8% year over year to $829.6 million. The company has updated its point-of-sale systems to better engage with customers, both offline and online. Investments made to integrate store and digital ecosystems for developing a seamless omnichannel experience are likely to drive greater sales. Skechers has been directing resources to enhance its digital capabilities, including augmenting website features, mobile applications and a loyalty program. ![]() ![]() Going ahead, SKX plans to introduce more innovative and comfortable technology products, build multi-platform marketing campaigns and launch more e-commerce sites around the world. The company is focused on designing and developing new products. Skechers has been making strategic investments to improve the infrastructure worldwide, primarily e-commerce platforms and distribution centers. This reflects the analysts’ optimism about the stock. For 2024, the Zacks Consensus Estimate for sales and EPS stands at $8.80 billion and $3.66 each, indicating corresponding increases of 11.1% and 24.2% from the prior-year reported numbers. Moreover, the Zacks Consensus Estimate for Skechers’ 2023 sales and earnings per share (EPS) is currently pegged at $7.92 billion and $2.95 each, suggesting respective growth of 6.4% and 24% from the corresponding year-ago reported figures. This footwear leader has appreciated 34.9% in the past six months, outperforming the industry’s 24.7% growth. Continued global demand for its Comfort Technology footwear is steadily driving results. SKX has been gaining from growth in its domestic and international channels for a while now. The company remains focused on boosting its omni-channel capabilities by expanding its direct-to-consumer (DTC) business and enhancing its foothold internationally. SKX appears encouraging on the back of robust business strategies. ![]()
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