Topic: How To Invest

Q: Could you kindly give me your input on whether Skechers (SKX) is worth investing in? Thanks.

Article Excerpt

A: Skechers U.S.A. Inc., $48.49, symbol SKX on New York (Shares outstanding: 134.5 million; Market cap: $7.3 billion; Consumer sector; TSINetwork Rating: Extra Risk;, is a California-based manufacturer of men’s, women’s and kid’s footwear. As of December 31, 2022, the company had 4,537 stores worldwide: 1,444 were company-owned and 3,093 were owned by third parties. It also sells its products online and wholesale through other retailers. It makes around 62% of sales outside the U.S. The company has consistently increased revenue: Skechers’ sales rose 25.5%, from $4.16 billion in 2017 to $5.22 billion in 2019. In 2020, due to store closures around the world, sales fell by 11.9% to $4.60 billion. In 2021, they bounced back, rising 36.7% to $6.31 billion. In 2022, revenue then increased a further 18.0% to $7.44 billion. Between 2017 and 2019, Skechers’ earnings per share grew 26.4%, from $1.78 to $2.25. Earnings then fell 71.1% to $0.65 a share in 2020, before rebounding to $2.59 in 2021…