One of the things that makes Nike so successful is the ability to create a lot of buzz around its sneakers. There are special editions of virtually every shoe worn by an iconic figure, and these shoes sell for a lot of money.
Here is a blog from Riley Jones with various articles:
Unfortunately, he’s not too fond of Skechers, accusing it of mashing together an Adidas and a Nike Sneaker to produce the Energy Burst.
Here is an excerpt:
One day, it looks like the brand is making serious strides to becoming a top contender in the footwear industry. Next, it’s dropping blatant rip-offs of popular sneakers that can only be described as utterly offensive. Apparently, not even lawsuits are enough to stop the brand’s biting ways, as Nice Kicks has just found a new model that somehow manages to ape Nike’s Flyknit tech and adidas Boost in the very same sneaker.
While this appears damning, here is an excerpt of an article that explains Skechers’ business model, appeal and potential limit:
Skechers may not be completely original in its styles, but it’s easy to see why the brand is the second-largest athletic footwear company in America. It capitalizes on selling cheap footwear that looks similar to designer styles. While I don’t like the idea of wearing Skechers, I wouldn’t mind purchasing a pair of its $70 boots that look similar to Steve Madden’s $130 boots. But for Skechers to have long-term legacy, it might need to adopt more original styles. Copying can only get you so far.
Kia and Hyundai became successful in spite of doing the same thing with cars. SKX is certainly not a premium brand but they do sell to that middle range of the market pretty well.
I still don’t think I’ll ever buy a pair, but would like to see the stock stabilize here
Hi Mike, It’s funny but there have now been at least 7 or 8 people on the board who said the same thing (including me), but who then tried one on, and then bought three or four pairs, just because they are so comfortable. (For me it was because I was with my wife who doesn’t wear anything else because of the comfort factor).
All my sneakers are minimal shoes though. I don’t like the big clunky sneakers and haven’t worn them from any brand (NKE, UA) in almost a decade. And I don’t really like what their other offerings look like.
Doesn’t mean it can’t be a good stock. GMCR had a nice run before it started crashing, and I never liked their coffee either.
FYI Fools, For anyone who isn’t familiar with the depth and breadth of Skechers’ business model, be sure to have a look at the Investor Presentation that is linked in Rizz’s post above. The new video is impressive but so is the Q&A.
And I never thought I would buy a pair of Skechers either, but I bought two pairs and wear them all the time now.
somehow manages to ape Nike’s Flyknit tech and adidas Boost in the very same sneaker.
Does that make sense to anyone? To me it comes across as a criticism for the sake of being critical. For some reason the dude is down on Skechers.
Personally, I haven’t the foggiest notion if Skechers is copying another maker’s styling because I don’t pay any attention to which company designed which shoe and which one was first and all that fashion stuff.
I own 3 pair of Skechers because I find them very comfortable. My wife own’s 2 pair. We walk together every morning for about an hour. We both needed new walkers and both bought SKX shoes. I told my wife one more or less pair of shoes was not going to impact the stock, get shoes you find the most comfortable. She tried on about 700 pair of shoes and ended up selecting Skechers.
If I have any complaint about Skechers it would that they are not very durable, but possibly it’s just not possible to build a sturdy, durable shoe that’s also comfortable right out of the box.
Doesn’t mean it can’t be a good stock. GMCR had a nice run before it started crashing, and I never liked their coffee either.
Just me, but I’d never buy the stock of a product I don’t particularly care for.
I own and love my Sketchers, and I’m (pathetically) a little brand conscious (e.g., wouldn’t be caught in Nike or Reebok, only wear UA, Brooks for athletics). Bought my Sketchers on the fly because I liked the looks and they were inexpensive. Year an a half later of pretty constant wear, and they still look good. Oh, and if they’re a knock-off, I haven’t come across the original.
So I bought the stock. We’ll see how it goes, but if I’m buying Sketchers, probably means it’s not just a shoe for the AARP set.
There are many “philes” in society. Audiophiles relentlessly pursue the best sound humanly possible for the music to which they listen.
The author of the article may be a “sneaker-phile.” People in New York City line up around the block for special sneakers.
This isn’t SKX business. Fashion is like art where tastes wax and wane. SXK offers value and comfort. These are incentive based products, not fashion based.
So long as SKX doesn’t do anything unlawful, I’m glad they mimic current fashions at an affordable price while providing comfort.
I like Skechers. I had several pair in my late 20s about :cough: years ago. They were comfortable and stylish not sure why I stopped buying them for me, but I did. I have since bought a few pair for my now six-year old son, and we stop in the Manhattan Beach store almost every time we’re down that way. I also like the stock, I don’t have a position but it’s the next buy on my list.
All that said, take a look at the link (or just Google Skechers Stan Smith) it’s pretty clear to me that they’ve completely stolen the look and are selling a rip-off of Addidas’ Stan Smith. It may not be infringement in a legal sense, I mean, hey it’s just a white shoe with a green tab…wink wink, nudge nudge.
“Just me, but I’d never buy the stock of a product I don’t particularly care for.”
Well, I liked the Keurig concept, but for my own coffee I prefer freshly ground beans vs something out of a pod or a can. It just tastes better.
Yes, there is the buy what you know thing, but I also am aware I may not be the average consumer for a lot of products. When I first saw SXK being talked about I was laughing to myself and thinking - “really? Who actually buys these shoes?”
But then after looking into it, apparently people do, and the revenue and growth were there. I don’t have any moral opposition to them, but their product just isn’t for me.
How many of you love your SWKS chips? I’d guess most love their 4G connectivity, but if not for investing in the company, I’d bet most people could care less what chip they have as long as the device works and wouldn’t even know what SWKS is in.
As another example - I prefer Android devices to Apple devices, but I think Apple may be a more compelling investment choice here. TWTR has a better user experience than FB in my opinion, but the investment performance is the opposite because FB makes money.
Or I think Grubhub (GRUB) is an awesome business that I use a lot, but I’m not sure how good it is as an investment.
And lets not even talk about the GPRO or TSLA fans who really love those products and may have.
Lots more examples but while its cool to find a product you like that is also a good investment, sometimes that can cloud your perspective to the other side of the story as well when evaluating if the trend has changed.
"FWIW, they make little baskets which fit in a Keurig into which you can put your own freshly ground beans. "
Yes, but the machines also don’t get the water hot enough, and for the time they brew you need pressure to get good coffee extraction like an espresso. Probly some of the reasons why the stock has been in a freefall since they have been trying to branch out into all the new devices and update everything.