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09-12-2019, 07:00 PM
Skechers' 'cool' value gives it room to run like Nike: Barron's
Reporting by Alwyn Scott; Editing by Marguerita Choy
DECEMBER 9, 2019 / 9:00 AM
NEW YORK (Reuters) - Shoemaker Skechers USA Inc (SKX.N) is expected to post earnings growth on pace with Nike Inc (NKE.N) over the next three years, giving its relatively low valuation a chance of catching up, financial newspaper Barron’s reported in its Dec. 7 edition.
Analysts estimate Skechers’ earnings-per-share will rise 15% this year and in 2020, and 12% in 2021. Yet Nike trades at about 30 times analysts’ future earnings estimates, compared with 16 times for Sketchers, even after Skechers shares soared more than 75% this year, the paper said.
Skechers sells trainers, dress shoes, sandals and boots - a broader range than Nike - and has grown over the past 20 years to become the third-largest global footwear brand by revenue, after Nike and Adidas AG (ADSGn.DE), the paper said.
Skechers styles, often priced at $50 to $70, are perceived as “cool” and good value, an edge its bigger rivals lack, Barron’s added.
More details in https://www.reuters.com/article/us-skech...SKBN1YD03I
Reporting by Alwyn Scott; Editing by Marguerita Choy
DECEMBER 9, 2019 / 9:00 AM
NEW YORK (Reuters) - Shoemaker Skechers USA Inc (SKX.N) is expected to post earnings growth on pace with Nike Inc (NKE.N) over the next three years, giving its relatively low valuation a chance of catching up, financial newspaper Barron’s reported in its Dec. 7 edition.
Analysts estimate Skechers’ earnings-per-share will rise 15% this year and in 2020, and 12% in 2021. Yet Nike trades at about 30 times analysts’ future earnings estimates, compared with 16 times for Sketchers, even after Skechers shares soared more than 75% this year, the paper said.
Skechers sells trainers, dress shoes, sandals and boots - a broader range than Nike - and has grown over the past 20 years to become the third-largest global footwear brand by revenue, after Nike and Adidas AG (ADSGn.DE), the paper said.
Skechers styles, often priced at $50 to $70, are perceived as “cool” and good value, an edge its bigger rivals lack, Barron’s added.
More details in https://www.reuters.com/article/us-skech...SKBN1YD03I
Specuvestor: Asset - Business - Structure.