Skechers initiated with a Hold at Needham

Needham analyst Tom Nikic initiated coverage of Skechers (SKX) with a Hold rating and no price target The firm believes Skechers is “a great business,” but one that faces near-term headwinds both fundamentally and sentiment-wise. China has become a problematic market industry-wide, North America retail is now comping negative, and gross margins have started to moderate from all-time highs, notes the analyst, who thinks it may be difficult for shares to “work” while these dynamics play themselves out over the next few quarters.