from my wife…a big fan for some time,(not a stock investor)
I filled her in on the circumstances - her bias:
- she knows a lot of users - they are happy with the shoes.
- bought a few pairs for our trip to Ireland (just completed),knowing we’d be walking a lot.
- going to buy more shoes, very soon
About the company going forward:
she’s looking for style, thinks that management needs to focus on that.
(If I may add :), she’s very insightful about advertising, and is aware of current ads. Her take: they need to do some ads featuring working professionals, like nurses, teachers, hair dressers, waiters, and flight attendants.
…hope this feedback helps, HP
I agree with your wife. SKX shoes became popular for their comfort(and they are very comfortable). They need to direct advertising to professionals who are on their feet a lot.
* (If I may add :), she’s very insightful about advertising, and is aware of current ads. Her take: Skechers needs to do some ads featuring working professionals, like nurses, teachers, hair dressers, waiters, and flight attendants.
Herman, why don’t you suggest that to their Investor Relations department. It sounds like a good idea.
Flattered by the generous recs from the previous post, my wife, Judy, looked at Skechers’ website and compared it with Teva and Mozo.
She’s very impressed with Teva’s “visually appealing and cleaner” website.
She emphasized the story about the “cool history” of the company. Skechers is “impersonal, cold”. Her view is that “you can make any story interesting.” …Skechers may need creativity on this.
Also, an example of ineffective presentation on Skechers home page:
Under Women’s - it divides to 2 branches: ‘new arrivals’ and ‘what’s hot’. The 2 selections are “not that different” and the term, ‘what’s hot’ is “dorky”.
Under Men’s - the same thing
Re: Facebook page: “They’re trying - pretty good.” …“posting quite a bit, which you have to do.”
About the idea of marketing to professional women on their feet a lot:
She noted that Mozo, has shoes specifically designed for the restaurant trade, by a ‘designer chef’, which strikes me as a little groovy
Nevertheless, Mozo, is onto the idea.
I know Judy could jazz up their website, but she’s pretty busy with our own business in Houston.
…Tough business, this shoe selling. Noticed that DECK, which owns Teva and Mozo, has a p/e of just 17.
I would think that putting testimonials and positive reviews on their website would help, too. It’s the positive reviews of the shoes posted here that have gotten me interested in trying on some Skechers. (Right now, I own athletic shoes made by Reebok, Converse [now owned by Nike], Mizuno, and New Balance.)
One can extrapolate from Nike’s issues that its inventory issues and thus discounting affected sketchers business in the US.
Headwinds may be the domestic story for Sketchers, particularly given that US agnostic grew only .8% in Q1 and 1.2% in Q2. This slower than expected domestic growth directly leads to inventory issues for companies like Nike that then must discount to clear out excessive inventory (resulting from slower than expected economic growth), and this creates pricing pressure from the top down on everybody else.