Skechers USA (SKX) AI Stock Analysis

• Market Cap: $9.29B
• Dividend Yield: N/A
• Average Volume (3M): 9.47M
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.83
• Revenue Growth: 10.66%
• EPS Growth: 9.44%
• Country: US
• Employees: 10,100
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 1.17
• Shares Outstanding: 130,289,470
• 10 Day Avg. Volume: 19,236,212
• 30 Day Avg. Volume: 9,470,345
• PEG Ratio: N/A
• Price to Book (P/B): 1.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 81.73
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 2.16
• Enterprise Value/Ebitda: 2.52
• 1Y Price Target: $61.00
• Price Target Upside: -1.53% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

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.

Global Expansion

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.

Tariff Risk Mitigation

The geographic diversity of revenue, with 62% of revenue from outside the U.S., provides a structural advantage in mitigating tariff risk.

Negative Factors

Market Uncertainties

The decision to sell the company was influenced by uncertainties around tariffs, the macro outlook, and the challenges of navigating public markets.

Stock Downgrade

The stock of Skechers USA Inc has been downgraded to an Equal-weight rating with a $63 price target.

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 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 USA generates revenue primarily through the sale of its footwear products. The company's revenue streams include wholesale, direct-to-consumer, and international sales. Wholesale revenue is derived from selling products to department stores, specialty retailers, and national chains, while direct-to-consumer sales occur through Skechers' owned retail stores and e-commerce platforms. International sales are a significant contributor to Skechers' earnings, with the company having a strong presence in many global markets. Additionally, the company benefits from strategic partnerships and licensing agreements that help expand its product offerings and market reach. Skechers continues to focus on innovation, marketing, and expanding its retail network to drive growth and profitability.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.97B	8.00B	7.44B	6.29B	4.60B
	Gross Profit
4.77B	4.15B	3.52B	3.10B	2.19B
	EBIT
904.26M	784.79M	392.95M	458.61M	28.25M
	EBITDA
1.11B	968.31M	700.39M	737.76M	276.49M
	Net Income Common Stockholders
639.47M	545.80M	373.03M	741.50M	146.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.23B	1.26B	717.90M	894.86M	1.47B
	Total Assets
8.46B	7.55B	6.89B	6.49B	5.81B
	Total Debt
1.93B	1.68B	1.64B	1.66B	2.00B
	Net Debt
812.62M	493.90M	1.03B	865.73M	633.58M
	Total Liabilities
3.64B	3.15B	3.02B	2.95B	3.09B
	Stockholders Equity
4.73B	4.02B	3.57B	3.26B	2.48B
Cash Flow		Free Cash Flow
270.60M	907.44M	-120.67M	-97.52M	21.54M
	Operating Cash Flow
687.39M	1.23B	238.32M	212.15M	331.45M
	Investing Cash Flow
-485.36M	-418.02M	-287.49M	-344.67M	-312.47M
	Financing Cash Flow
-253.46M	-234.68M	-118.06M	-433.92M	533.30M

Skechers USA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 61.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 61.95 is above the 20-day moving average (MA) of 55.87, above the 50-day MA of 54.45, and below the 200-day MA of 63.10, indicating a neutral trend. The MACD of 2.84 indicates Negative momentum. The RSI at 68.05 is Neutral, neither overbought nor oversold. The STOCH value of 59.80 is Neutral, 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	$19.41B	20.76	39.80%	―	19.40%	32.70%
CROX	80 Outperform	$6.59B	7.20	53.70%	―	2.09%	26.18%
BIRK	76 Outperform	$10.65B	39.43	9.35%	―	18.55%	147.70%
SHOO	76 Outperform	$1.90B	11.29	19.51%	3.21%	10.17%	-4.71%
SKX	72 Outperform	$9.29B	14.94	14.67%	―	10.66%	9.44%
WWW	68 Neutral	$1.39B	19.31	25.29%	2.34%	-13.05%	―
Sector *	61 Neutral	$6.98B	11.35	2.88%	3.90%	2.65%	-21.84%

Skechers USA Corporate Events

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.

Spark’s Take on SKX Stock

According to Spark, TipRanks’ AI Analyst, SKX is a Outperform.

Skechers presents a solid financial foundation with consistent revenue growth and stable margins. However, technical indicators suggest a cautious outlook due to the stock trading below key moving averages and limited momentum. The valuation is attractive, but the absence of a dividend and uncertainty from the earnings call contribute to a moderate overall score. Key strengths include robust international sales and a strong balance sheet, while challenges in China and global trade uncertainties pose risks.

To see Spark’s full report on SKX stock, click here.