Shares of consumer footwear and athleisure brand Skechers USA (NYSE:SKX) are down (-16%) for 2022, slightly outperforming benchmark indices. The third-largest shoemaker recorded all-time record sales in its fiscal results for the first quarter of 2022. It has increased its direct-to-consumer (DTC) sales to 29% of total revenue, with international sales still accounting for the bulk of revenue. The company was able to successfully navigate the global supply chain disruption. Despite the COVID-19 restrictions being remarkably intractable in China, the company still expects to reach $10 billion in revenue by 2026. The company has invested significantly in growing its workforce and managing logistical challenges to distribute its inventory to wholesalers. to meet strong consumer demand. This enabled the Company to improve its average unit price by 50%. The company continues to grow its customer base by expanding its roster of well-known talents and athletes. The shares are trading at 12.8x future earnings. Cautious investors seeking exposure in a shoe company that is still shooting on all cylinders can look forward to opportunistic pullbacks in Skechers’ stock.
Q1 2022 Release Revenue
On April 26, 2021, Skechers announced its fiscal first quarter 2022 results for the quarter ended March 2022. The company reported adjusted earnings per share (EPS) earnings of $0.80 excluding one-time items versus consensus analyst estimates for profit of $0.73, beating estimates by $0.07. Revenues grew 29.3% year-over-year (YOY) to $1.85 billion, better than analysts’ estimates of $1.69 billion. Robert Greenburg, CEO of Skechers, commented: “As we mark our third decade in business, we couldn’t be more excited about our future. In the first quarter, we set a new quarterly record, delivering the most innovative, stylish and comfortable product ever and backed it up with impactful marketing.”
Skechers provided upward guidance for the second quarter with earnings per share between $0.40 and $0.50 versus $0.30 by consensus analysts. Second quarter revenues are expected to be between $1.45 billion and $1.55 billion, compared to $1.22 billion analyst estimates. The company also increased its full-year 2021 earnings per share to between $1.80 and $2.00 against $1.92 analyst estimates and full-year revenues between $5.8 billion and $5.9 billion vs. $5.54 billion consensus analyst estimates.
Takeaway for conference calls
Skechers USA COO, David Weinberg chaired the call. He noted the record $1.8 billion achieved quarterly in the first quarter of 2022. This was due to a 33% increase in wholesale and a 16% increase in the DTC segments. America saw sales growth of 31%, but EMEA saw a sales increase of 49%. APAC had growth of 4%, led by China. APAC markets saw increasing COVID-related restrictions in several geographies, especially China. However, the company still expects that market to grow to $10 billion in revenue by 2026. Wholesale growth was led by the Americas and EMEA, both of which grew more than 40% in the quarter. The DTC segment saw a 150% increase in EMEA, reflecting last year’s operating restrictions that were eased this year. The company saw double-digit growth in both physical and e-commerce thanks to a 50% improvement in the average unit price as a result of increased demand. The company also opened 31 new own stores worldwide in the quarter. He concluded by spotting many of his new talents to expand his client base: “We also introduced two new ambassadors Willie Nelson and Martha Stewart and launched campaigns with Chris Carter, Rusty Wallace and Amanda Kloots. This quarter we launched the global announced agreement with Pro Golfer Matt Fitzpatrick and pro Pickleball players Tyson McGuffin and Catherine Parenteau playing in Skecher’s pickleball shoes.”
SKX Opportunistic Pullback Levels
Using the gun charts on the weekly and daily time frames provides an accurate picture of the landscape for SKX stocks. The weekly gun chart has bottomed out near the Fibonacci (fib) level of $33.61 before spiraling back up into earnings. The weekly reversed the breakdown of the puppies with the declining 5-period moving average (MA) at $38.57, followed by the 15-period MA at $41.11. The 50-period weekly MA resistance is $45.30. The 200-period weekly MA support is priced at $36.12 and lower Bollinger Bands (BBs) are at $32.74. The weekly market structure low (MSL) triggers a breakout above $39.93. The daily gun chart breakdown has a declining 5-period MA at $38.88, followed by the 15-period MA at $39.45. The 50-period daily MA stands at $39.62 as the BBs begin to widen and the daily lower BBs drop to $35.96. The daily stochastic went back down as bounce momentum was suppressed and reversed. Cautious investors can watch for opportunistic pullback levels on the $33.61 fib, $31.53 fib, $30.05 fib, $28.63 fib, $27.29 fib, $26.12 fib and the $25 .10 fib level. Upward trajectories range from the $42.18 fib level to the $48.24 fib level.
This post Skechers stock can be purchased with pullbacks was original published at “https://www.entrepreneur.com/article/427097”