Skechers USA (SKX) AI Stock Analysis

• Market Cap: $9.44B
• Dividend Yield: N/A
• Average Volume (3M): 5.77M
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.83
• Revenue Growth: 10.66%
• EPS Growth: 9.44%
• Country: US
• Employees: 10,100
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 1.17
• Shares Outstanding: 130,289,470
• 10 Day Avg. Volume: 5,622,319
• 30 Day Avg. Volume: 5,770,320
• PEG Ratio: N/A
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 83.07
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 2.17
• Enterprise Value/Ebitda: 2.43
• 1Y Price Target: $61.00
• Price Target Upside: -3.56% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 72 Outperform
• Price Target: ―

Skechers showcases a solid financial foundation with consistent growth and strong international sales. However, technical indicators suggest caution due to limited momentum and trading below key moving averages. The strategic acquisition by 3G Capital could bolster long-term growth prospects, but challenges in China and global trade uncertainties require careful attention. While the valuation is attractive, the lack of dividend and operational hurdles temper the overall positive outlook.

Positive Factors

Acquisition

The acquisition by 3G Capital offers a significant premium above Skechers' recent closing price, indicating a positive valuation for shareholders.

Market Position

Skechers holds a strong position as the third largest footwear brand globally with potential growth opportunities in value pricing, comfort technologies, and expansion in Asia.

Operational Improvements

Efforts to improve company dynamics, such as changing management compensation metrics and providing fiscal guidance, are noted as positive changes.

Negative Factors

Capital Expenditure

Skechers' capital intensity is increasing, as Capex as a percentage of sales is reaching all-time highs and well above sector levels.

Stock Rating Downgrade

The analyst recommendation for Skechers USA Inc has been downgraded from Buy to Hold.

Tariff Exposure

The company's significant exposure to China tariffs and revenue could continue to weigh on its financial performance.

Skechers USA Business Overview & Revenue Model

Company Description

Skechers USA, Inc. (SKX) is a global leader in the lifestyle and performance footwear industry, designing and marketing a diverse range of footwear for men, women, and children. Established in 1992 and headquartered in Manhattan Beach, California, the company offers two distinct footwear categories through a variety of brands: lifestyle footwear, which includes casual and fashionable shoes, and performance footwear, designed for athletic activities. In addition to footwear, Skechers also offers apparel and accessories, expanding its product line to meet consumer demands.

How the Company Makes Money

Skechers generates revenue primarily through the sale of its footwear products. The company's revenue model is comprised of three main channels: wholesale, retail, and e-commerce. The wholesale channel involves selling products to department stores, specialty shops, and independent retailers globally. The retail segment includes sales through company-owned Skechers retail stores in key markets worldwide. E-commerce serves as a growing revenue stream, with products being sold directly to consumers via the company's own digital platforms and third-party online marketplaces. Skechers also benefits from licensing agreements, expanding its brand into apparel and accessories, which contributes to its overall earnings. Strategic partnerships and collaborations with celebrities and influencers further enhance brand visibility and consumer engagement, driving sales across multiple channels.

Skechers USA Financial Statement Overview

Summary

Skechers demonstrates strong financial performance with consistent revenue growth and stable profitability margins. The company maintains a robust balance sheet, ensuring financial stability and manageable leverage. Although cash flow generation has faced slight challenges recently, the overall financial health remains solid.

Income Statement

Skechers has shown consistent revenue growth with a strong trajectory, increasing from $4.60 billion in 2020 to $9.13 billion in TTM (Trailing-Twelve-Months). Gross profit margins have been stable, reflecting efficient cost management, with the most recent TTM margin at approximately 52.46%. However, EBIT margin has slightly decreased to 9.53% in TTM from 10.08% in 2024, indicating some pressure on operational efficiency. Overall, profitability remains robust with a net profit margin of 6.96% in TTM.

Balance Sheet

The company's balance sheet is strong, with a healthy equity ratio of 57.63% in TTM, indicating financial stability. The debt-to-equity ratio is modest at 0.38, suggesting manageable leverage. Return on Equity (ROE) has improved to 12.74% in TTM, signifying effective use of shareholder funds. However, the increase in total debt over the years warrants careful monitoring.

Cash Flow

While Skechers' operating cash flow remains positive, it has decreased to $619 million in TTM compared to $687 million in 2024. The free cash flow has seen a decline, suggesting increased capital expenditure, which could be indicative of strategic investments. The operating cash flow to net income ratio stands at 0.97, reflecting solid cash generation relative to net profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.13B	8.97B	8.00B	7.44B	6.29B	4.60B
Gross Profit	4.84B	4.77B	4.15B	3.52B	3.10B	2.19B
EBITDA	1.09B	1.12B	968.31M	700.39M	737.76M	276.49M
Net Income	635.28M	639.47M	545.80M	373.03M	741.50M	146.23M
Balance Sheet
Total Assets	8.65B	8.46B	7.55B	6.89B	6.49B	5.81B
Cash, Cash Equivalents and Short-Term Investments	1.10B	1.23B	1.26B	717.90M	894.86M	1.47B
Total Debt	2.15B	1.93B	1.68B	1.64B	1.66B	2.00B
Total Liabilities	3.57B	3.64B	3.15B	3.02B	2.95B	3.09B
Stockholders Equity	4.99B	4.73B	4.02B	3.57B	3.26B	2.48B
Cash Flow
Free Cash Flow	112.55M	270.60M	907.44M	-120.67M	-97.52M	21.54M
Operating Cash Flow	619.36M	687.39M	1.23B	238.32M	212.15M	331.45M
Investing Cash Flow	-519.80M	-485.36M	-418.02M	-287.49M	-344.67M	-312.47M
Financing Cash Flow	-98.82M	-253.46M	-234.68M	-118.06M	-433.92M	533.30M

Skechers USA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 63.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKX, the sentiment is Positive. The current price of 63.25 is above the 20-day moving average (MA) of 62.62, above the 50-day MA of 59.80, and above the 200-day MA of 62.67, indicating a bullish trend. The MACD of 0.75 indicates Positive momentum. The RSI at 73.80 is Negative, neither overbought nor oversold. The STOCH value of 89.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SKX.

Skechers USA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DECK	79 Outperform	$15.75B	16.77	41.82%	―	16.22%	29.52%
CROX	77 Outperform	$6.01B	6.57	53.70%	―	2.09%	26.18%
BIRK	77 Outperform	$9.21B	34.11	9.35%	―	18.55%	147.70%
SHOO	74 Outperform	$1.83B	10.86	19.51%	3.33%	10.17%	-4.71%
SKX	72 Outperform	$9.44B	15.22	14.67%	―	10.66%	9.44%
WWW	68 Neutral	$1.55B	21.52	25.29%	2.10%	-13.05%	―
Sector *	62 Neutral	$16.65B	11.30	-7.38%	3.01%	1.59%	-23.30%

Skechers USA Corporate Events

Skechers Announces Merger with 3G Capital Affiliates

On May 4, 2025, Skechers U.S.A., Inc. entered into a merger agreement with Beach Acquisition Co Parent, LLC and its subsidiary, Beach Acquisition Merger Sub, Inc., affiliates of 3G Capital Partners L.P. The merger will result in Skechers becoming a subsidiary of Parent, with the transaction supported by significant debt financing from institutions like JP Morgan Chase Bank. The merger agreement offers Skechers shareholders cash or a combination of cash and equity in the new parent company. The financial implications of the merger include a comprehensive debt financing plan and the issuance of new equity to fund the transaction.

The most recent analyst rating on (SKX) stock is a Hold with a $63.00 price target. To see the full list of analyst forecasts on Skechers USA stock, see the SKX Stock Forecast page.

Skechers USA Holds Annual Stockholders Meeting

On May 20, 2025, Skechers U.S.A., Inc. held its Annual Meeting of Stockholders, where 92.7% of the total outstanding eligible votes were represented. During the meeting, stockholders elected three directors to the Board of Directors for a term expiring in 2028, highlighting the company’s commitment to stable governance and strategic leadership.

The most recent analyst rating on (SKX) stock is a Buy with a $88.00 price target. To see the full list of analyst forecasts on Skechers USA stock, see the SKX Stock Forecast page.

Skechers USA Announces Acquisition by 3G Capital

On May 4, 2025, Skechers U.S.A., Inc. announced an agreement to be acquired by 3G Capital, a global investment firm, in a merger that will see Skechers become a privately held company. The transaction, valued at $63.00 per share in cash, represents a 30% premium over the company’s 15-day volume-weighted average stock price. This strategic move, unanimously approved by Skechers’ board, aims to support the company’s long-term growth and strategic initiatives, with the current management team continuing to lead the company alongside 3G Capital.