Shares of consumer footwear and sportswear brand Skechers USA (NYSE: SKX) have fallen (-16%) by 2022 and were slightly better than benchmarks. The third-largest footwear maker reached its all-time highest quarterly earnings in its first fiscal quarter of 2022. It has increased its direct consumer sales (DTC) to 29% of total revenue, while international sales they still account for the bulk of 60% of revenue. The company was able to successfully navigate the global supply chain disruption. Although COVID-19 restrictions are remarkably persistent in China, the company still expects to reach $ 10 billion in sales by 2026. The company invested significantly in increasing its workforce and managing the logistical challenges to deliver. its inventory to wholesalers to meet strong consumer demand. This allowed the company to improve its average unit price by 50%. The company continues to expand its customer base by growing its list of well-known talent and athletes. Shares are trading at 12.8 times futures. Prudent investors looking for exposure in a shoe company that still shoots with all cylinders may be wary of opportunistic setbacks from Skechers shares.
Publication of results for the first quarter of 2022
On April 26, 2021, Skechers released its fiscal results for the first quarter of 2022 for the quarter ending March 2022. The company reported an adjusted earnings per share (EPS) of $ 0.80 excluding non-recurring items versus consensus analyst estimates for a profit of $ 0.73, exceeding estimates by $ 0.07. Revenue grew 29.3% year-over-year (YOY) to $ 1.85 billion, beating analysts’ estimates by $ 1.69 billion. Skechers CEO Robert Greenburg commented: “As we celebrate our third decade in business, we couldn’t be more excited about our future. In the first quarter, we hit a new quarterly sales record. to deliver the most innovative, elegant and comfortable product to date and we have supported it with impressive marketing “.
Skechers issued a second-quarter upside guidance with EPS hovering between $ 0.40 and $ 0.50 compared to analysts ’estimates of $ 0.30. Second-quarter revenue is expected to hover between $ 1.450 billion and $ 1.55 billion compared to analysts’ estimates of $ 1.22 billion. The company also raised its full-year EPS for 2021 from $ 1.80 to $ 2.00 compared to analysts’ estimates of $ 1.92 and annual revenue of $ 5.8 to $ 5.9. $ 1 billion compared to consensus analyst estimates of $ 5.54 billion.
Skechers USA Chief Operating Officer David Weinberg chaired the call. He noted the $ 1.8 billion quarterly sales record reached in the first quarter of fiscal 2022. This was driven by a 33% increase in the wholesale segments and a 16% increase in the DTC segments. The Americas experienced 31% growth in the main line, but the EMEA saw a 49% increase in sales. APAC had a 4% growth led by China. APAC markets saw several geographies increase restrictions on COVID, especially China. However, the company still expects this market to grow to $ 10 billion in sales by 2026. Wholesale business growth was led by America and EMEA, which grew more than 40% during the quarter. The DTC segment rose 150% in the EMEA, due to operating restrictions in recent years eased this year. The company experienced double-digit growth in both physical and e-commerce due to a 50% improvement in the average unit price of increased demand. The company also opened 31 new stores owned by the company during the quarter worldwide. He concluded by pointing out many of his new talents to expand his customer 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 announced the deal. with professional golfer Matt Fitzpatrick and professional Pickleball players Tyson McGuffin and Catherine Parenteau playing with Skechers pickleball shoes. “
SKX opportunistic withdrawal levels
The use of rifle charts in weekly and daily time periods provides an accurate view of the landscape of SKX stocks. The weekly rifle chart is at a short-term low of around $ 33.61 Fibonacci level (fib). before staging a reel back in the gains. The weekly formed a reverse break for the puppies with the 5-period moving average (MA) falling to $ 38.57, followed by the 15-period MA to $ 41.11. The 50-period weekly MA resistance is $ 45.30. The 200-period weekly MA support stands at $ 36.12 and the lower Bollinger Bands (BB) at $ 32.74. The weekly Low Market Structure (MSL) buys activators at a break above $ 39.93. The breakdown of the daily rifle chart has a 5-period MA in the fall to $ 38.88, followed by the 15-period MA at $ 39.45. The 50-day daily MA stands at $ 39.62 as BBs begin to expand and daily BBs fall to $ 35.96. The daily stochastic went down again as the rebound momentum suffocated and reversed. Prudent investors can watch the opportunistic withdrawal levels at the level of $ 33.61 fib, $ 31.53 fib, $ 30.05 fib, $ 28.63 fib, $ 27.29 fib, $ 26.12 fib and the $ 25.10 fib level. Rising trajectories range from the $ 42.18 fib level to the $ 48.24 fib level.