Skechers USA (SKX) AI Stock Analysis

• Market Cap: $9.47B
• Dividend Yield: N/A
• Average Volume (3M): 2.56M
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.78
• Revenue Growth: 12.11%
• EPS Growth: 17.08%
• Country: US
• Employees: 10,100
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 1.13
• Shares Outstanding: 130,962,340
• 10 Day Avg. Volume: 2,770,538
• 30 Day Avg. Volume: 2,559,976
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 2.20
• Enterprise Value/Ebitda: 9.73
• 1Y Price Target: $64.75
• Price Target Upside: 2.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: $70.00 ▲(11.13% Upside)

Skechers' strong financial performance and reasonable valuation are key strengths, supported by robust international sales growth. However, challenges in cash flow management and macroeconomic pressures, particularly in China, present risks. The technical indicators suggest a stable outlook, while the earnings call reflects a mixed sentiment with both achievements and challenges.

Positive Factors

Acquisition Premium

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

Growth Opportunities

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.

Mergers and Acquisitions

Low valuations sector-wide and this acquisition could encourage more mergers and acquisitions in the industry.

Negative Factors

Stock Downgrade

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

Tariff Risks

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

Valuation Concerns

Skechers has struggled with a low stock valuation despite its growth prospects and profitability potential, often being valued lower than its peers.

Skechers USA Business Overview & Revenue Model

Company Description

Skechers U.S.A., Inc. designs, develops, markets, and distributes footwear for men, women, and children; and performance footwear for men and women worldwide. The company operates through three segments: Domestic Wholesale, International Wholesale, and Direct-to-Consumer. It offers casual, casual athletic, sport athletic, trail, sandals, boots, and retro fashion footwear for men and women under the Skechers USA, Skechers Sport, Skechers Active, Modern Comfort, Skechers Street, Mark Nason, and BOBS brands; sneakers, casuals, boots, and sandals for boys and girls under the Skechers Mega-Craft, S-Lights, SKECH-AIR, Foamies, Twinkle Toes, Z-Strap, Skechers Stretch Fit, and Skechers Street brands; and technical footwear under the Skechers GOrun, Skechers GOwalk, Skechers GOtrain, Skechers GOtrail, and Skechers GO Golf brands. The company also provides men's and women's slip-resistant and safety-toe casuals, boots, hikers, and athletic shoes; and lifestyle apparel for men, women, and kids. As of December 31, 2021, it operated 4,306 company and third party owned Skechers stores. The company sells its products through department and specialty stores, athletic and independent retailers, boutiques, and online retailers; and through its e-commerce sites, concept stores, and factory and warehouse outlet stores. It also licenses its Skechers brand. Skechers U.S.A., Inc. was incorporated in 1992 and is headquartered in Manhattan Beach, California.

How the Company Makes Money

Skechers generates revenue primarily through the sale of footwear and accessories, which are distributed through various channels including company-owned retail stores, e-commerce platforms, and third-party retailers globally. The company has a robust wholesale distribution network that allows it to reach a wide audience. Key revenue streams include direct-to-consumer sales from its retail and online stores, as well as wholesale sales to department stores, specialty retailers, and international distributors. Additionally, Skechers benefits from strategic partnerships with athletic organizations and sponsorships of high-profile athletes, which enhance brand visibility and drive consumer interest. Seasonal product launches and collaborations also contribute to revenue by attracting diverse customer segments and maintaining brand relevance in a competitive market.

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	9.41B	8.97B	8.00B	7.44B	6.29B	4.60B
Gross Profit	4.96B	4.77B	4.15B	3.52B	3.12B	2.21B
EBITDA	1.12B	1.12B	968.31M	700.39M	737.76M	276.49M
Net Income	665.48M	639.47M	545.80M	373.03M	741.50M	98.56M
Balance Sheet
Total Assets	9.28B	8.46B	7.55B	6.89B	6.49B	5.81B
Cash, Cash Equivalents and Short-Term Investments	1.48B	1.23B	1.26B	717.90M	894.86M	1.47B
Total Debt	1.98B	1.93B	1.68B	1.64B	1.66B	2.00B
Total Liabilities	3.90B	3.64B	3.15B	3.02B	2.95B	3.09B
Stockholders Equity	5.27B	4.73B	4.02B	3.57B	3.26B	2.48B
Cash Flow
Free Cash Flow	63.16M	270.60M	907.44M	-120.67M	-97.52M	21.54M
Operating Cash Flow	641.14M	687.39M	1.23B	238.32M	212.15M	331.45M
Investing Cash Flow	-559.88M	-485.36M	-418.02M	-287.49M	-344.67M	-312.47M
Financing Cash Flow	10.39M	-253.46M	-234.68M	-118.06M	-433.92M	533.30M

Skechers USA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 62.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKX, the sentiment is Neutral. The current price of 62.99 is below the 20-day moving average (MA) of 63.08, above the 50-day MA of 62.94, and above the 200-day MA of 62.37, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 51.74 is Neutral, neither overbought nor oversold. The STOCH value of 59.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SKX.

Skechers USA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DECK	76 Outperform	$15.41B	15.81	43.58%	―	15.43%	24.20%
SKX	73 Outperform	$9.47B	14.40	14.79%	―	12.11%	17.08%
SHOO	71 Outperform	$1.94B	21.04	11.09%	3.11%	7.80%	-48.10%
BIRK	71 Outperform	$9.09B	26.95	11.36%	―	18.66%	183.98%
WWW	69 Neutral	$2.31B	27.52	27.52%	1.39%	-2.83%	―
CROX	68 Neutral	$4.59B	22.56	15.39%	―	2.04%	-71.52%
Sector *	63 Neutral	€17.62B	13.43	15.56%	3.60%	-0.67%	-125.81%

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.