Skechers USA (SKX) AI Stock Analysis

• Market Cap: $9.50B
• Dividend Yield: N/A
• Average Volume (3M): 2.86M
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.75
• Revenue Growth: 12.11%
• EPS Growth: 17.08%
• Country: US
• Employees: 10,100
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 1.13
• Shares Outstanding: 130,962,340
• 10 Day Avg. Volume: 2,500,769
• 30 Day Avg. Volume: 2,863,050
• 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: 10.23
• 1Y Price Target: $63.00
• Price Target Upside: -0.35% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 77 Outperform
• Price Target: $72.00 ▲(13.89% Upside)

Skechers' robust financial performance and reasonable valuation are strong positives, but challenges in cash flow management and uncertainties from the earnings call, particularly in China, weigh on the overall score. The technical analysis suggests stability, supporting a balanced outlook.

Positive Factors

Global Expansion

Skechers reported Q2 results showing strong growth overseas, with EMEA growing nearly 50% and Asia ex-China growing nearly 25%.

Valuation Premium

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

Negative Factors

Profit Margin Decline

Skechers' Q2 gross margin declined 160bps year-over-year and EBIT margin declined 250bps.

Revenue Challenges

U.S. revenues for Skechers slowed to flat year-over-year, with pressure in the wholesale channel.

Skechers USA Business Overview & Revenue Model

Company Description

Skechers USA, Inc. is a leading global footwear brand known for its innovative and stylish athletic and casual footwear, headquartered in Manhattan Beach, California. The company operates in the footwear sector, offering a diverse range of products including performance shoes, lifestyle shoes, work footwear, and accessories. Skechers markets its products under several brand lines, catering to various consumer demographics, including children, adults, and athletes, and is recognized for its commitment to comfort and quality.

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 shows strong revenue growth and profitability, supported by a solid balance sheet with low leverage. However, challenges in cash flow management, with declining free cash flow growth, indicate a need for improved operational efficiency.

Income Statement

Skechers has demonstrated consistent revenue growth, with a TTM (Trailing-Twelve-Months) revenue growth rate of 3.09%. The company maintains strong profitability metrics, with a gross profit margin of 52.67% and a net profit margin of 7.07% in the TTM. However, there is a slight decline in EBIT and EBITDA margins compared to the previous year, indicating potential pressure on operational efficiency.

Balance Sheet

The company's balance sheet is solid, with a manageable debt-to-equity ratio of 0.38 in the TTM, reflecting prudent leverage. Return on equity is healthy at 14.09%, indicating effective use of equity capital. The equity ratio stands at 56.82%, showcasing a strong equity base relative to total assets.

Cash Flow

Skechers faces challenges in cash flow management, with a significant decline in free cash flow growth at -43.89% in the TTM. The operating cash flow to net income ratio is 0.28, suggesting moderate cash generation from operations. The free cash flow to net income ratio is low at 9.85%, indicating limited free cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.41B	8.97B	8.00B	7.44B	6.31B	4.61B
Gross Profit	4.96B	4.77B	4.15B	3.52B	3.12B	2.21B
EBITDA	1.07B	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	2.25B	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	4.78B	4.28B	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: Positive
• Last Price: 63.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 63.22 is above the 20-day moving average (MA) of 63.04, above the 50-day MA of 63.10, and above the 200-day MA of 62.45, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 63.54 is Neutral, neither overbought nor oversold. The STOCH value of 94.62 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	83 Outperform	$18.38B	19.03	43.58%	―	15.43%	24.20%
BIRK	78 Outperform	$9.31B	28.18	11.36%	―	18.66%	183.98%
SKX	77 Outperform	$9.50B	14.46	14.79%	―	12.11%	17.08%
SHOO	74 Outperform	$2.19B	22.90	11.09%	2.77%	7.80%	-48.10%
WWW	69 Neutral	$2.60B	30.93	27.52%	1.26%	-2.83%	―
CROX	68 Neutral	$4.86B	23.21	15.39%	―	2.04%	-71.52%
Sector *	61 Neutral	$17.97B	12.87	-5.30%	2.97%	1.26%	-14.45%

Skechers USA Corporate Events

3G Capital’s Acquisition of Skechers Approved

On August 28, 2025, Skechers U.S.A., Inc. and 3G Capital Partners L.P. announced that they have received all necessary regulatory approvals for 3G Capital’s acquisition of Skechers, with the transaction expected to close on September 12, 2025. The deadline for Skechers stockholders to elect their preferred form of merger consideration is September 5, 2025, with options including cash or a combination of cash and equity in a new parent company. The acquisition is anticipated to impact Skechers’ operations and market positioning, with potential implications for stockholders and business relationships during the transaction period.

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.