We have $1.10, $0.95, $1.50, and $0.65 for 2015. That will total $4.20 TTM P/E at 12/31/15 which will get reported in early Feb 2016. So if their P/E is to stay the same at 26.5, we should have a share price of $111.30 9.5 months from now. At $85 today, that a return of 31% in less than a year. As I mentioned, I think there’s upside in the future earnings numbers that I’m using. My opinion is that SKX is still a good buy even after today’s pop.
The above is an excerpt from post 7644 on April 23, 2015. I offered my opinion that SKX was still a good buy then at $85. Well, the price has climbed a lot faster than I expected…it’s not even been 1 month.
Almost nothing except the price. The dollar has weakened quite a bit against the Euro which down dampen the currency headwinds in the current quarter. But the ECB just announce that they will frontload QE prior to their Summer lull. This could strengthen the dollar in the short term. Other than that, we have seen reports on SKX gaining share against Adidas and another show companies but for those of us who follow the company closely, this was not new news because we know SKX is growing faster than the other companies. The reporting, however, may be having an effect on the interest among investors to buy shares.
So, SKX is now about 20% more expensive than it was a month ago (with no real news that would lead to any increase in the view of future earnings). I’m not buying any new shares at these prices, but SKX is also already my second largest position. But I also don’t think it’s expensive now, and I think that there’s a very good chance for an earnings beat over company guidance of $0.95 this quarter. I’ve been buying CRTO, INBK, PRAA, and BOFI because I see them as better values right now.
Just my opinions.