Analyst Ike Boruchow from Wells Fargo maintained a Buy rating on Skechers USA (SKX – Research Report) and decreased the price target to $65.00 from $70.00.
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Ike Boruchow’s rating is based on several strategic factors that position Skechers USA favorably in the current market environment. Despite a slight miss in sales expectations for the first quarter of 2025, Skechers’ significant international revenue, which accounts for approximately 66% of its total, provides a buffer against potential tariff impacts and the challenges in the Chinese market. The company’s management has expressed optimism about the stability and recovery in China, attributing recent performance issues to tough comparisons rather than a fundamental decline.
Moreover, Skechers is actively working to mitigate tariff impacts through strategic measures such as resourcing and vendor cost-sharing, while maintaining price increases as a last resort. The company’s commitment to growth is evident in its plans to open new stores and expand distribution capacities in the US and China. Although Skechers has suspended its full-year guidance due to uncertainties reminiscent of the early COVID-19 days, its proactive strategies and international diversification are seen as strengths that justify a Buy rating.
Boruchow covers the Consumer Cyclical sector, focusing on stocks such as Capri Holdings, Tapestry, and Nike. According to TipRanks, Boruchow has an average return of 1.0% and a 46.17% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $53.00 price target.