Together with “daddy sneakers” dominating the style world, could the quintessential daddy shoe manufacturer — Skechers USA Inc (NYSE: SKX) — be poised for a big 2018?
For latching onto fashions to its advantage Skechers is notorious. Luckily the next look has come using chunky shoes all of the rage this time, with them.
The brand has experienced a resurgence within the previous few years, as a more affordable but less hip option to the huge footwear gamers.
Cowen analyst John Kernan recently called Skechers one of Cowen’s finest thoughts for 2018. Cowen lifted fiscal 2018 sales and EPS estimates, increased the price target and claimed an Outperform about the inventory.
With a strong 2018 product lineup, Kernan stated Skechers is underappreciated or misunderstood.
“The breadth and thickness of this Skechers variety along with also the brand’s international reach, class expansion opportunities and customer awareness is underappreciated,” he explained.
An Growing International Business
Argus analyst John Staszak also joined in on the bullishness, recently upgrading Skechers to a Buy rating with a $44 price target.
“Despite a difficult retail environment, Skechers seems to have gained momentum at the U.S.,” Staszak said.
Skechers has according to Argus. 26 percent grew from the third quarter and is expected to reach 50 percent of overall sales up from 25% of overall sales in 2009, the analyst stated.
“Longer term, we expect Skechers to continue to create innovative products and also to expand through new store openings and international distribution agreements. In addition, we expect the company to profit from rapid expansion in emerging markets, especially China and India,” Staszak said.
Analyst: Trends Are In Skechers’ Favor
Though Skecher’s sales in categories are still down for the year, footwear analyst Matt Powell of NPD Group informs Benzinga the business would be on his watch set.
“I think that the current style surroundings plays right in their favor, particularly the chunky outsole, though it is a fairly minor trend,” Powell stated. “The main trend we are seeing would be that functionality shoes aren’t selling, however athletic-inspired sneakers are what is hot, which is totally in Skechers’ wheelhouse.”
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Photo from Brett Hershman.
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