Skechers' Place in the Athleisure Trend

This article looks at four of the major players in the athleisure trend including Nike, Under Armour, Lululemon and Skechers. On Skechers, the article states:

Unlike the other growth stocks that have come out of the athleisure trend, Skechers is a different kind of play - value. Perhaps its investors seeking growth in this arena which has led to this company being a value play. But don’t let Skechers PE ratio of 15.9 fool you - they aren’t just a value play. Skechers has a 3-year revenue growth rate of 26.3%, which isn’t far off from Under Armour. The company also carries a beautiful balance sheet with minimal debt and strong liquidity.

Skechers made a smart play on the athleisure trend by signing celebrities like Meghan Trainor, Demi Lovato, and Ringo Starr, rather than competing for single 8 figure endorsement contracts in the NBA. Skechers has been a strong force that seems to have gone under the radar. The chart below shows Skechers revenue growth in comparison to their stock price over the last 5 years.

Skechers is a definite value play opportunity. Trading below the footwear industry averages in all valuation multiples, Skechers is being overlooked for more growth stocks. Nevertheless, Skechers is posting incredible growth across their top and bottom lines, but their stock just isn’t moving. This stock can only stay under the radar for so long before investors pick it up. BUY.

Read the entire article at…

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In case anyone was worried about this, Skechers won their case against Converse……



Skechers is the next stock on my list to buy and hold. It look like an excellent growth story with strong brand and should not be treated much differently than Under Armour. This said, I’ve never had any success investing in non-tech (lacked the patience) but Skechers, albeit it has been a fickle company over the years product success wise, seems like a sustainable and worthwhile long-term investment from this level. Very well run company, that has clear momentum and long-term plan, and is successfully executing on the plan while creating a sustainable brand.

But for a different day. I’ve had my investment for the week.