sketchers international sales growing at 50% as of 2016

Accuracy score :
97%

Skechers USA Inc

Summary (from latest annual report and quarterly report 2016)

  • Total equity: 1.52 billion USD
  • Market Cap is 3 billion USD ( last price of the stock is 18.98 USD)
  • is an American lifestyle and performance footwear company for men, women and children
  • Equity of total company increased from 1.07 billion USD in 2014 to 1.52 billion in 2016
  • Company has 629 million USD in cash on account (from quarterly report)
  • Total equity – cash on account = 1.52 billion USD – 629 million USD = 891 million USD
  • In 2016 company has 68 million USD long-term debt, short – term debt was 5 million USD (In 2014 total debt was 118 million USD)
  • In 2016 quarterly report - total equity increased to 1.52 billion  USD from 1.07 billion USD in 2014, total debt is 73 million USD in 2016)
  • Company's revenue increased in 2015 to 3.15 billion USD from 2.38 billion in 2014
  • Net income in 2015 was 232 million USD, Net income in 2014 was 139 million USD

Skechers USA Inc  SKX

Skechers is an American lifestyle and performance footwear company for men, women and children. Headquartered in Manhattan Beach, California, the brand was founded in 1992. Skechers employed more than 9,200 people worldwide and is now the second largest athletic footwear brand in the United States.

The company makes an effort to maintain a trendy and stylish brand image by using celebrity-driven advertising. Skechers offers two distinct footwear categories: a lifestyle division that includes Skechers Memory Foam, the charity line BOBS and Relaxed Fit comfort shoes, and a performance division that includes Skechers GOrun and Skechers GOwalk footwear. Skechers also produces sport and performance apparel for men and women. Through licensing agreements, the company offers branded bags, watches, eyewear and additional merchandise. Skechers has an extensive network of global distributors that sell its product in over 160 countries and territories.

  • Skechers domestic wholesale net sales increased $221.8 million, or 22.2%, to $1.220 billion for 2015 compared to $998.0 million for 2014. The increase in their domestic wholesale segment’s net sales resulted from a 15.3% unit sales volume increase to 51.8 million pairs in 2015 from 44.9 million pairs in 2014
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  • Skechers retail segment sales increased $142.8 million to $833.1 million for the year ended December 31, 2015, a 20.7% increase over sales of $690.4 million for 2014
  • Skechers has 391 domestic stores and 128 international retail stores, and company currently plans to open approximately 55 to 65 stores in 2016
  • United States division is worth 1.9 billion USD, International divisions are worth 1.1 billion USD
  • Shares of Skechers U.S.A. Inc. tumbled 17% Friday, extending their losses for the year to 37%, after the maker of athletic footwear missed third-quarter profit and sales estimates and offered a below-consensus outlook for the fourth quarter. Skechers said it had net income of $65.1 million, or 42 cents a share, in the quarter, down from $66.6 million, or 43 cents a share, in the year-earlier period. Sales rose to $942.4 million from $856.2 million. The company said it now expects sales of $710 million to $735 million for the fourth quarter, also below the FactSet consensus of $800 million

 

DIVIDEND POLICY

Earnings have been and will be retained for the foreseeable future in the operations of their business. The company has not declared or paid any cash dividends on Class A Common Stock and does not anticipate paying any cash dividends in the foreseeable future. Skechers current policy is to retain all of its earnings to finance the growth and development of its business

 

Total =  3 billion usd

 

  • Skechers Co-founder Jeff Greenberg and private investor Jake Silverstein have purchased a controlling stake in Fitwall, an Irvine, California-based group training studio franchisor ( for undisclosed amount)
  • Greenberg beneficially owned 30.2% of the aggregate number of votes eligible to be cast by Skechers stockholders, and together with shares beneficially owned by other members of his immediate family, Mr. Greenberg and his immediate family beneficially owned 41.2% of the aggregate number of votes eligible to be cast by Skechers stockholders, and Mr. Schwartzberg beneficially owned 25.9% of the aggregate number of votes eligible to be cast by Skechers stockholder

 

 

Opinion about the company

Fundamentally it is a good company and in the future we can expect its growth (Total debt is 73 million USD, company has 629 million USD in cash on account, ROE is around 19 %).