SKX is down 15% YTD prior to earnings
Skechers U.S.A., Inc. (NYSE:SKX) is an American company most known for its footwear. SKX designs, develops, and markets a diverse range of lifestyle and performance footwear, apparel, and accessories for men, women, and children. The retail company’s products are available in over 180 countries and territories through department and specialty stores, and direct to consumers through digital stores and 4,308 physical retail stores.
On July 19, Skechers announced that it will be taking its BOBS from Skechers line to the UK, teaming up with a pets charity, Woodgreen, to help animals across the United Kingdom. Through sale of the brand’s footwear and apparel, Skechers will give funds that will support thousands of Woodgreen pets and their owners throughout the UK. The new partnership also includes promotions for pet adoptions and raising funds in Skechers stores. Since 2015, Skechers has donated over $8 million to save and support over 1.5 million animals through sales of BOBS from Skechers footwear, apparel, and accessories.
SKX is also scheduled to release its second quarter of 2022 financial results after market closes on Tuesday, July 26. Following the press release, David Weinberg, Chief Operating Officer, and John Vandemore, Chief Financial Officer, will host a conference call to review Skechers' results.
Skechers stock price has decreased 30% over the past 12 months and SKX is currently trading down 32% since reaching a 52-week high of $55.87 last August. Additionally, shares of SKX have dropped in price 15% year-to-date. However, Skechers stock is up 3% over the past month and has increased 13% since bottoming at a 52-week low of $33.50 in early March.
From a fundamental point of view, Skechers stock offers an intriguing valuation and a solid growth rate. Skechers stock currently trades at a forward price-earnings ratio of 12.14 and a price-sales ratio of 0.87. Moreover, SKX has maintained relatively consistent top and bottom line growth, with the exception of fiscal 2020. Despite reporting a 12% decrease in revenues and a 72% decline in net income for fiscal 2020, the retailer's trailing 12-month revenues and net income are up 44% and 154%, respectively, since fiscal 2018. Furthermore, SKX is estimated to end fiscal 2022 with 16.8% revenue growth, and increase their revenues another 10.2% for fiscal 2023, making Skechers stock a relatively safe option for value investor.