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Skechers USA (NYSE:SKX) Guided Low, Could Out Perform

Posted by: : Paul EbelingPosted on: January 6, 2015 Skechers USA (NYSE:SKX) Guided Low, Could Out Perform

Skechers USA (NYSE:SKX) Guided Low, Could Out Perform


Skechers USA (NYSE:SKX) may have ‘underpromised’ when it said last September it ‘remained comfortable’ with analysts projections for Q-4.

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.

Symbol Last Trade Date Change Open High Low Volume
NYSE:SKX 56.8 Jan-05-2015 1.06 56.06 57.45 55.84 939,100
HeffX-LTN Analysis for SKX: Overall Short Intermediate Long
Neutral (0.02) Neutral (0.15) Neutral (-0.15) Neutral (0.06)
Recent CandleStick Analysis
Very Bullish
Date Candle
2 Jan-2015 Bullish Harami
30 Dec-2014 DOJI

Open Gaps None

Untitled SKX

Support and Resistance
Type Value Conf.
resist. 64.20 2
resist. 61.41 2
resist. 58.55 2
resist. 56.83 6
supp 55.87 4
supp 54.86 7
supp 53.95 2
supp 52.40 2
supp 52.00 2
supp 50.06 2
supp 49.42 2
HeffX-LTN Chart Indicators
Ind. Short Inter Long
Fibs Be Be Bu
High N Be N
Lows VBu N N
Trends N N N
Stoch Bu
VBu=Very Bullish,    Bu=Bullish
Be=Bearish,    VBe=Very Bearish

Stay tuned…


Paul Ebeling

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Paul Ebeling

Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.

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