Tom E and Sketchers

Tom E (TMF1000) posted one of his updates on Sketchers for those who have access to SA:…

some highlights:

The Company has come a long way from its dependence on the sale of toning shoes. The Company reported record sales for the fourth quarter. It was their best fourth quarter is the Company 22-year history. It followed the third quarter, which was their best quarter ever as measured by revenue. The $2.378 billion in revenue for 2014 was also an annual record. When it was obvious that they shape-up shoe momentum was dying and lawsuits were mounting related to the health effects of using the shoes, many investors jumped ship.

In my third quarter 2014 page post, I wondered whether for the first time could SKX fourth quarter beat their third quarter. It did produce another record, but sales were $569.722 million down 15.5% from the record third quarter. Not surprising really, since the fourth quarter has never beaten the third quarter in their 22-year history. Nevertheless, the fourth quarter was a record fourth quarter with sales moving up 26.4% over last year’s corresponding quarter.

I wrote my last page post on them during the third quarter. The price of the stock was $58.86 and the PE ratio was 22.90. A quarter later and the price has soared 25.3% and the current PE is 27.12 or about 18.4%