Fashion footwear is hot, and the stock of sneaker-maker Skechers USA is kicking into high gear. Shares of this Manhattan Beach, Cal., company, which deals in casual and active footwear, are up 76% since October 2005, following a post-Katrina sales slump.
The company mainly sells its shoes to department and specialty retail stores, though it also owns 125 stores that peddle Skechers products exclusively. Profits reached $45 million in 2005, a whopping 90% increase from over 2004's net of $27 million. Sales rose 9%, to $1 billion, in 2005.
Skechers has been diligent in its quest to adapt to the changing tastes of its customers by consistently upgrading styles and designs. The company also recently launched three new designer, or "lifestyle," brands, which have seen healthy sales so far this year. Same-store sales -- sales at stores open at least a year -- rose steadily in 2005, with most of the growth occurring in Skechers stores, which carry the company's newest in-season footwear.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Susquehanna Financial Group analysts John Shanley and Christopher Svezia say the strength of the Skechers brand is "encouraging" and predict that demand will remain strong beyond the fall 2006 shopping season. They maintain a "positive" rating for the stock.
At $22, Skechers shares (symbol SKX) trade at 18 times the average of analysts' 2006 earnings estimates of $1.20 per share, according to Thomson First Call.
--Katy Marquart
-
Here's How To Get Organized And Work For YourselfWhether you’re looking for a side gig or planning to start your own business, it has never been easier to strike out on your own. Here is our guide to navigating working for yourself.
-
How to Manage Risk With Diversification"Don't put all your eggs in one basket" means different things to different investors. Here's how to manage your risk with portfolio diversification.
-
Fed Sees Fewer Rate Cuts in 2025: What the Experts Are SayingFederal Reserve The Federal Reserve cut interest rates as expected, but the future path of borrowing costs became more opaque.
-
Why Is Warren Buffett Selling So Much Stock?Berkshire Hathaway is dumping equities, hoarding cash and making market participants nervous.
-
Fed Cuts Rates Again: What the Experts Are Saying
Federal Reserve The central bank continued to ease, but a new administration in Washington clouds the outlook for future policy moves.
-
If You'd Put $1,000 Into Google Stock 20 Years Ago, Here's What You'd Have TodayGoogle parent Alphabet has been a market-beating machine for ages.
-
Fed Goes Big With First Rate Cut: What the Experts Are Saying
Federal Reserve A slowing labor market prompted the Fed to start with a jumbo-sized reduction to borrowing costs.
-
Stock Market Today: Stocks Retreat Ahead of Nvidia EarningsMarkets lost ground on light volume Wednesday as traders keyed on AI bellwether Nvidia earnings after the close.
-
Stock Market Today: Stocks Edge Higher With Nvidia Earnings in FocusNvidia stock gained ground ahead of tomorrow's after-the-close earnings event, while Super Micro Computer got hit by a short seller report.
-
Stock Market Today: Dow Hits New Record Closing HighThe Nasdaq Composite and S&P 500 finished in the red as semiconductor stocks struggled.
