Footwear company Skechers (NYSE: SKX) will be announcing earnings results tomorrow after the bell. Here’s what to expect.
Skechers met analysts’ revenue expectations last quarter, reporting revenues of $2.21 billion, up 12.8% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates and EPS guidance for next quarter missing analysts’ expectations.
Is Skechers a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Skechers’s revenue to grow 8.1% year on year to $2.43 billion, slowing from the 12.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.18 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Skechers has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Skechers’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Nike’s revenues decreased 9.3% year on year, beating analysts’ expectations by 2.3%, and Monarch reported revenues up 3.1%, topping estimates by 2.1%. Nike traded down 5.4% following the results.
Read our full analysis of Nike’s results here and Monarch’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the consumer discretionary stocks have shown solid performance, the group has generally underperformed, with share prices down 10.4% on average over the last month. Skechers is down 13.5% during the same time and is heading into earnings with an average analyst price target of $68.47 (compared to the current share price of $49.63).
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