Skechers USA (NYSE:SKX) Guided Low, Could Out Perform
The WS-J notes that the shoe company has been expanding rapidly driven by international expansion, the popularity of its new styles of casual sneakers and its push into performance footwear, endorsed by the likes of Boston Marathon winner Meb Keflezighi.
Skechers saw double-digit percentage growth in its domestic and international wholesale businesses in Q-3 of Y 2014 as same-store sales at company-owned units rose 11%.
When the company reported results in September, it said it ‘remained comfortable’ with analysts’ consensus for sales growth in Q-4 of 19%.
Skechers chart is in a cup-with-handle base with a 58.88 buy mark. The cup shows a decline of 26% from a 64.53 inside the normal range.
Skechers’s reported merchandise backlog appears to be a relatively good indicator of sales growth in the following Quarter. The company’s Q-3 sales rose 31%, it reported Q-2 sales growth of 37%.
In September, Skechers reported its backlog in Q-3 had risen by more than 50%. When viewing the relationship of backlog and sales growth in prior periods, an expectation of 19% for Q-4 growth is low.
There is a very noticeable gap between Skechers’ backlog growth last Quarter and Wall Street analysts’ sales-growth estimates for Q-4.
The maker and marketer of casual, dress and athletic shoes has delivered triple-digit EpS growth in recent Quarters.
|HeffX-LTN Analysis for SKX:||Overall||Short||Intermediate||Long|
|Neutral (0.02)||Neutral (0.15)||Neutral (-0.15)||Neutral (0.06)|
|Recent CandleStick Analysis
|2 Jan-2015||Bullish Harami|
Open Gaps None
|Support and Resistance|
|HeffX-LTN Chart Indicators|
|VBu=Very Bullish, Bu=Bullish
Be=Bearish, VBe=Very Bearish
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