Skechers

Just got back from my first visit to a Skechers store. I went thinking I would buy one pair of shoes, assuming I liked them. I walked out with two pairs, plus socks.

I am 55 years old with a chronically bad ankle, which puts me right in their target market (as evidenced by the Sugar Ray Leonard ad I saw last night–not many 20-somethings are going to have a clue about him). The shoes are wide-based and well-cushioned and springy–heck, I almost feel like I could go jogging in them (but alas, even Skechers can’t do that much for me). The proof of the pudding will be how long do they last, but I have to say I am impressed with the first wearing.

They are not the most stylish shoes, but the ones I got aren’t bad and at my age and condition I am more concerned with comfort than style.

The reviews I’d read on line of our local store (Santa Barbara) said the service was poor, but I was greeted and helped promptly by energetic, intelligent, friendly employees and I found the service to be excellent.

I have a teeny position in SKX, but I think they are addressing a growing market (aging baby boomers with sore feet) with a good product, and with a reasonable PE (lowest in the past 5 years), I will be looking to add.

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I have a lot of Skechers shoes. (probably purchased 25 in the last 12 years) I bought a couple of Merrells recently. You can get a good deal on Shoebuy.com with a $40 off coupon on purchase over $99. The two I bought cost me $60 which is a superb bargain. They are probably more comfortable (less stylish) than Skechers but will probably last longer. For 2 miles optional walk to work, I love the Merelles (and have used Skechers successfully as well in the past)

Having said that, I own call options in SKX and am very bullish on the stock. I decided to sell my stocks and replace them with call options istead to protect the downside. (Though I dont see how it can go lower from here) I can’t figure out why SKX stock is selling for so less. PE is only 12 or 13. Revenue grew at 32% in 2015, and still expected to grow at 16% in 2016. The business appears to be firing on all cylinders.

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I can’t figure out why SKX stock is selling for so less. PE is only 12 or 13. Revenue grew at 32% in 2015, and still expected to grow at 16% in 2016. The business appears to be firing on all cylinders.

I agree with your thought, and that is why I started a position recently after the big drop.

The folks at S&P Capital IQ rate SKX a Strong Buy- 5 Stars with a 12 month price target of $40.

DHeavy

Skechers Valuation: As Cheap As It Gets $SKX
http://www.seekingalpha.com/article/4004087

I thought this was a decent article. Not a ton of substance, but it points to one reason why SXK may be sporting such a low PE - poor perception of the company/management.

AJ

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“Skechers is not really competing head on with Nike, Adidas and Under Armour in the footwear category. The company’s price point is lower than its competitors, so its brand has more appeal at the low end…hundreds of millions of pairs of shoes per year. …around the world of less wealthy countries, Skechers price points see stronger demand.”

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