So, does SKX have an inventory problem?

Last cc this was brought up as a big deal by analysts w/ inventory build up at 38%. Mgt explained it away 2 fold: 28% backlog and new store openings.

Now analysts have thrown SKX in w/ the big Macy’s miss:

…Sequential Brands Group (SQBG -10%), Skechers (SKX -6.6%), G-III Apparel (GII -0.5%), and Columbia Sportswear (COLM -7%) are down sharply on the same concerns sweeping across the apparel store and department store sectors……

W/ SKX running 35%+ of sales internationally and the dollar tracking higher including a potential Dec rate hike could SKX be in for another shock come January ER? Legal fees are supposed to continue into 2016 as well.

Analysts are calling for a 22% jump in revenue and a 50% jump in eps for the coming quarter. Is the bar set too high?

Is the ride over?


And this:

…Sketchers’ valuation at its 52-week high had significant growth baked in. The stock traded at about 3.5 times 2014 sales, and 60 times 2014 GAAP earnings at its peak in August of this year. When valuations get that high, anything short of perfection can send a stock tumbling. That seems to be exactly what happened with Sketchers in October……

So, does SKX have an inventory problem?

Impossible to say until the holiday shopping is over.

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