Just wanted to throw out a quick question to Saul on SKX. When you invested in SKX did you look at UA at all? If so, why did you pick SKX? From a non financial perspective, it seems like UA has a broad base of products, is expanding it’s foot print across the world, and continues to expand into different sports. When I look at SKX, it seems like it’s primary focus is shoes. Is my problem that I’m trying to compare apples to oranges on this one? The reason I ask is I’m wanting to start a position in either SKX or UA, it just seems like UA is the more compelling case. Is it the P/E on UA that keeps you away?
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I decided I’d rather be in Sketchers at a much lower PE and faster growth.
Saul
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UA’s market cap need only multiply by 5 to equal NIKE, arguably the clear-cut market leaders.
UA’s P/E is approx 80.
That’s ridiculous is it not?
And yet I own UA (1.5% position).
I think I’ve been sold on the charm of Kevin Plank’s PR machine and gear. Someone tell me I’m crazy and to sell.
I think this is an apples, oranges, bananas comparison. All 3 are great companies and UA is currently putting up the growth for its PE… though at some point it will have to slow down.
The nice about investing is you don’t need to pick just one.
I have both SKX and UA, the latter of which has been a long term hold for years now.