Dernières nouvelles pour Skechers USA (NYSE:SKX) Stock

Skechers USA

Skechers USA Inc is a lifestyle footwear company under the Skechers GO brand name. Products offered include various styles of women's shoes, men's shoes, girl's shoes, boy's shoes, performance shoes, and work shoes. Allied products offered are apparel, bags, eyewear, toys, and more. Its products are available for sale at department and specialty stores, athletic and independent retailers, boutiques, and internet retailers. The company's operating segments includes Wholesale and Direct-to-Consumer. It generates maximum revenue from the Wholesale segment.

Skechers USA Inc

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Historically, investors have bet on the consumer discretionary sector when the Federal Reserve (the Fed) cuts interest rates, as these typically have a positive effect on consumer spending habits through easier and cheaper financing rates. However, this time it&#39;s different, the state of the consumer is not what it used to be before, and that is sending money out of a few stocks in the space and into others.
Stocks in the retail industry, those that are highly dependent on domestic demand and consumer trends, will likely suffer from what&#39;s happening behind the scenes in the economy. Lululemon Athletica Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/lulu#NASDAQ">LULU</a>) falls into this category, which is why price action and analyst downgrades have been working against the company lately. To avoid this pitfall, investors can look into those with much more international sales exposure.
A bigger brand like Nike Inc.&nbsp;with a large presence in international markets can help the financials of the business diversify across different trends and cycles. Benefitting from this same trend is Skechers Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/skx#NYSE">SKX</a>) with over a third of its sales exposure being concentrated in European markets. Before investors dig deeper into he divergence between these names, they should understand why domestic markets are seeing lower demand.
<h2>Key Factors Behind the Recent Decline in Consumer Confidence Readings</h2>
Economists can keep thinking in black or white terms when it comes to the consumer, but the reality is that there are many more factors at play, such as psychology. The consumer today has to battle with rising unemployment rates, inflation in items like rent, groceries, and insurance.
The divergence between earning power and inflation has caused one major shift in the financial sector, one that drove Warren Buffett out of consumer credit stocks like Capital One Financial Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cof#NYSE">COF</a>) over the past quarter. Credit card delinquencies are on the rise, and so are car repossession rates in their 23% annual spike.
Ultimately, the personal savings rate ended up negative in recent readings, meaning items like clothing and other discretionary items will likely be first to be put out of the monthly spending budget from consumers. Investors can probably guess what happens next to stocks that rely too much on domestic demand for these products, such as Lululemon.
<h2>The Trends Are Clear for Lululemon: Here Are the Key Details</h2>
Lululemon stock had been an investor favorite since the COVID-19 pandemic, when the Fed cut interest rates to a near historical low, an event that helped Lululemon see better prospects. However, today&#39;s rate cuts come up against the weakening consumer state, which won&#39;t probably have the same effect on the stock as they had a few years ago.
Wall Street analysts know this, and those at Raymond James, Citigroup, Deutsche Bank all downgraded Lululemon stock&#39;s price target over the past month. This shift in sentiment serves as a warning for investors to consider, one that is weighted against these fundamental trends that also work against the stock.
More than that, bearish traders decided to raid the stock recently as well, as Lululemon stock&#39;s short interest rose by as much as 10.8% in the past month, part of a quarterly trend higher. This new sentiment can be seen in the company&#39;s price action lately as well.
Lululemon stock now trades at a low 50% of its 52-week high, meaning a deep bear market in the company&#39;s value perception. The changing sentiment can also be attributed to Wall Street&#39;s earnings per share (EPS) projections for the next 12 months.
Analysts predict that Lululemon will see only $2.85 EPS compared to today&#39;s $3.15, calling for a net decline of 9.5% to bring the bearish thesis home. Despite the sock already trading at a low, investors should consider waiting a bit before forgiving its fall.
<h2>Why Nike and Skechers Are the Better Buys Right Now</h2>
Counting with a much bigger international presence, both Nike and Skechers are able to stay away from the potentially bigger contractions to be seen from the consumer sector in the United States, which is why Wall Street has treated both of them a bit better.
Not to mention, mega investor Bill Ackman recently took advantage of Nike&#39;s sell-off to buy up a sizeable stake in the company, showing investors that value is in Nike rather than Lululemon stock despite both suffering from similar declines. Here&#39;s what Wall Street had to say about Nike.
The consensus price target lies at $96.5 today, calling for up to 8% upside from where the stock trades right now. This is after the double-digit rally that Ackman&#39;s purchase ignited as well. But that&#39;s not all, the Healthcare of Ontario Pension Plan decided to boost their holdings by 625.4% in Nike, bringing their net investment to $5.8 million today.
All told, Nike stock now trades at 72% of its 52-week high to be significantly above Lululemon.
Skechers brings a similar thesis to the market, as the stock sits at 92% of its 52-week high to show investors bullish momentum in recent months.
Analysts at Bank of America felt comfortable boosting the stock&#39;s price target up to $81 a share, daring it to rally by as much as 17% from where it trades today and also make a new yearly high. Short sellers are also starting to capitulate in front of this trend, as Skechers stock&#39;s short interest declined by 9.2% in the past month.
With declining short interest and increasing analyst confidence, Skechers appears poised for continued strength. If current trends persist, the stock could soon challenge its previous highs, further supported by strong market sentiment.
Fundamentally, these two have much better upside and safety than Lululemon, which is why investors should consider them as potential buys in the middle of a weakening consumer sentiment reading.
The article &quot;<a href="https://www.marketbeat.com/stock-ideas/these-3-stocks-show-how-to-navigate-declining-consumer-confidence/">These 3 Stocks Show How to Navigate Declining Consumer Confidence</a>&quot; first appeared on MarketBeat.

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These 3 Stocks Show How to Navigate Declining Consumer Confidence

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Shares of footwear and athletic apparel stocks are trading lower in sympathy with Nike which reported Q1 revenue that missed estimates.

While footwear manufacturers like Nike Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nke#NYSE">NKE</a>), Crocs Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/crox#NASDAQ">CROX</a>), and Skechers U.S.A. Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/skx#NYSE">SKX</a>) stocks took hits with contracting sales due to weaker consumer spending, ON Holdings AG (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/onon#NYSE">ONON</a>) has been quietly making new highs trading up nearly 90% year-to-date (YTD). This consumer discretionary sector company&#39;s sneakers have an elastic demand appeal with runners.
<h2>On Holding&#39;s CloudTec Technology </h2>
From Deckers Outdoor Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/deck#NYSE">DECK</a>) Hoka&#39;s &quot;Active Foot Frame&quot; and &quot;MetaRocker&quot; technology to Nike&#39;s &quot;Tensil Air&quot; and &quot;ReactX&quot; technology with carbon fiber plates and ZoomX foam, it seems every sneaker manufacturer has some proprietary technology that makes their shoes special.
On Holding&#39;s CloudTec technology is meant to make runners feel like they&#39;re walking on clouds. It&#39;s a Swiss-engineered cushioning technology comprised of cylindrical cloud parts located on the shoe&#39;s outsole that compress vertically and horizontally to absorb impact, providing a soft landing with each step.
It also has a rebounding effect that builds a propulsive force to propel the runner forward. It converts the kinetic energy generated by each landing into a powerful takeoff.
<h2>Unveiling LightSpray Technology </h2>
On Holding unveiled its LightSpray technology during the 2024 Paris Olympics. It&#39;s a revolutionary manufacturing process that takes three minutes to make each shoe. They are spray-on shoes. It uses a robotic arm that applies liquid polymer material onto an upper shoe mold, instantly solidifying on contact and creating a completely customized upper weight of only 30 grams with 75% less carbon emission. The technology eliminates seams, laces, tongue, and heel caps to improve comfort, reduce irritation, and create a shoe that weighs virtually nothing. Hellen Obiri wore LightSpray On shoes to win her second Boston Marathon in 2024.
<h2>Not Inventory Glut, But Inventory Shortage </h2>
Apparently, runners can&#39;t get enough, as On Holding has had to deal with inventory shortages, not&nbsp;inventory surpluses and glutes experienced by competitors. This also keeps On Holding&#39;s merchandise selling at full price, from $140 to $190 per pair of shoes, with very few promotions, which contributes&nbsp;to its margins.
<h2>Double-Digit Sales Growth in All Channels </h2>
On Holding reported its second quarter 2024 EPS of 16 cents, missing analyst estimates by 1 penny. Gross profit margin rose 40 bps to a hefty 59.95%, driven by full-price sales and lower freight costs. Revenue climbed an impressive 27.8% YoY to 635.2 million, beating analyst estimates of $628.52 million. Sales rose double-digits across all channels. Direct-to-consumer (DTC) sales rose 28.1% YoY. Wholesale revenue rose 27.6% YoY. Sales for the Americas rose 26.7% YoY. Asia Pacific sales rose 24.8% YoY.
<h2>Reiterating Double-Digit Guidance </h2>
On Holding reiterates its full-year expectations of at least 30% YoY net sales growth, 60% gross operating profit margin, and an adjusted EBITDA margin of 16% to 16.5% in constant currency. The focus will be on On&#39;s U.S. warehouse automation to scale its distribution capabilities in the United States to meet the outsized demand.
On Holding CEO and Co-Founder David Allemann commented, &quot;As mentioned, the strong brand momentum converts into strong demand for On across all our channels and partners. The ability to convert this momentum to sales, especially in the Americas region, would have been even higher. Still, the ongoing transition of our Atlanta warehouse led to some product availability constraints, including key franchises like the Cloud and delayed or missing deliveries both toward our D2C and wholesale customers.&quot;
<h2>ONON Stock Sets Up an Ascending Triangle </h2>
An ascending triangle is a bullish pattern comprised of a flat-top upper trendline resistance converging with an ascending lower trendline support at the apex point. The breakout occurs when the stock surges through the upper trendline resistance.
<img alt="ONON On Holdings stock chart" class="aligncenter" src="https://www.marketbeat.com/logos/articles/med_20240929175720_chartc-onon.jpg" style="height:756px; width:915px" />
ONON formed a flat-top upper trendline resistance at $52.06. The rising lower trendline support formed from higher lows on pullbacks. The ascending triangle breakout triggers above $52.06. The daily anchored VWAP support is at $47.09. The daily relative strength index (RSI) is flat around the 66-band. Fibonacci (Fib) pullback support levels are at $47.90, $43.47, $40.58, and $37.50.
On Holding&#39;s average consensus price target is $47.95, and its highest analyst price target&nbsp;is&nbsp;$60.00.&nbsp;Analysts have given it 18 Buy ratings and five Hold ratings.
Actionable Options Strategies: Bullish investors can buy on pullbacks using cash-secured puts at the fib pullback support levels to buy the dip and write covered calls to execute a wheel strategy for income.
Bullish options investors can take a bullish call debit spread for less capital than owning the stock while minimizing the downside with capped upside gains.
The article &quot;<a href="https://www.marketbeat.com/originals/up-90-and-still-running-on-holding-stocks-remarkable-climb/">Up 90% and Still Running: On Holding Stock&#39;s Remarkable Climb</a>&quot; first appeared on MarketBeat.

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Up 90% and Still Running: On Holding Stock's Remarkable Climb

Skechers USA's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SKX#NYSE">SKX</a>) short percent of float has fallen 9.09% since its last report. The company recently reported that it has 5.32 million shares sold short, which is 5.5% of all regular shares that are available for trading. Based on its trading volume, it would take traders 3.71 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Skechers USA Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1727382616_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Skechers USA has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Skechers USA's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Skechers USA's peer group average for short interest as a percentage of float is 6.84%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

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Peering Into Skechers USA's Recent Short Interest

9 analysts have shared their evaluations of Skechers USA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SKX#NYSE">SKX</a>) during the recent three months, expressing a mix of bullish and bearish perspectives.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">5</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $78.56, a high estimate of $83.00, and a low estimate of $72.00. This current average has increased by 3.67% from the previous average price target of $75.78. 
<img src="https://www.benzinga.com/files/images/story/2024/1727118013_0.png" alt="price target chart" />
<h2>Investigating Analyst Ratings: An Elaborate Study</h2>
A comprehensive examination of how financial experts perceive Skechers USA is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Christopher Nardone</td>
<td>B of A Securities</td>
<td>Lowers</td>
<td>Buy</td>
<td>$81.00</td>
<td>$87.00</td>
</tr>
<tr>
<td>John Kernan</td>
<td>TD Cowen</td>
<td>Raises</td>
<td>Buy</td>
<td>$78.00</td>
<td>$76.00</td>
</tr>
<tr>
<td>JESALYN Wong</td>
<td>Evercore ISI Group</td>
<td>Raises</td>
<td>Outperform</td>
<td>$72.00</td>
<td>$68.00</td>
</tr>
<tr>
<td>Adrienne Yih</td>
<td>Barclays</td>
<td>Raises</td>
<td>Overweight</td>
<td>$79.00</td>
<td>$78.00</td>
</tr>
<tr>
<td>Tom Nikic</td>
<td>Wedbush</td>
<td>Raises</td>
<td>Outperform</td>
<td>$79.00</td>
<td>$76.00</td>
</tr>
<tr>
<td>Jim Duffy</td>
<td>Stifel</td>
<td>Raises</td>
<td>Buy</td>
<td>$83.00</td>
<td>$81.00</td>
</tr>
<tr>
<td>John Kernan</td>
<td>TD Cowen</td>
<td>Lowers</td>
<td>Buy</td>
<td>$76.00</td>
<td>$79.00</td>
</tr>
<tr>
<td>Alex Straton</td>
<td>Morgan Stanley</td>
<td>Raises</td>
<td>Overweight</td>
<td>$80.00</td>
<td>$60.00</td>
</tr>
<tr>
<td>John Kernan</td>
<td>TD Cowen</td>
<td>Raises</td>
<td>Buy</td>
<td>$79.00</td>
<td>$77.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Skechers USA. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Skechers USA compared to the broader market.</li>
<li>Price Targets: Delving into movements, analysts provide estimates for the future value of Skechers USA's stock. This analysis reveals shifts in analysts' expectations over time.</li>
</ul>
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Skechers USA's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/SKX/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Skechers USA analyst ratings.</a>
<h2>All You Need to Know About Skechers USA</h2>
Skechers USA Inc is a lifestyle footwear company under the Skechers GO brand name. Products offered include various styles of women's shoes, men's shoes, girl's shoes, boy's shoes, performance shoes, and work shoes. Allied products offered are apparel, bags, eyewear, toys, and more. Its products are available for sale at department and specialty stores, athletic and independent retailers, boutiques, and internet retailers. The company's operating segments includes Wholesale and Direct-to-Consumer. It generates maximum revenue from the Wholesale segment.
<h3>Key Indicators: Skechers USA's Financial Health</h3>
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Revenue Growth: Skechers USA's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 7.21%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 6.5%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Skechers USA's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 3.35%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): Skechers USA's ROA excels beyond industry benchmarks, reaching 1.81%. This signifies efficient management of assets and strong financial health.
Debt Management: With a below-average debt-to-equity ratio of 0.42, Skechers USA adopts a prudent financial strategy, indicating a balanced approach to debt management.
<h2>What Are Analyst Ratings?</h2>
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
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Navigating 9 Analyst Ratings For Skechers USA

B of A Securities analyst Christopher Nardone maintains Skechers USA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SKX#NYSE">SKX</a>) with a Buy and lowers the price target from $87 to $81.

B of A Securities Maintains Buy on Skechers USA, Lowers Price Target to $81

Benzinga examined the prospects for<a href="http://www.benzinga.com/trading-ideas"> many investors&#8217; favorite stocks</a> over the last week — here&#8217;s a look at some of our top stories.
The three major averages posted weekly gains, with the S&amp;P 500 rising 1.36% and up over 19% for 2024, while the Dow gained 1.62% and the Nasdaq advanced 1.49%. 
The Federal Reserve cut interest rates by 50 basis points in September, surprising many economists who expected a smaller 25-basis-point reduction. 
Fed Chair Jerome Powell emphasized the need to act early to support the labor market, noting that strong employment requires proactive measures. While hinting at potential future cuts, Powell framed this move as a recalibration rather than a broader policy shift, <a href="https://www.benzinga.com/markets/equities/24/09/40965372/fed-delivers-large-interest-rate-cut-in-bid-to-sustain-labor-market-stocks-gold-set-new-record-h">stressing data-driven decision-making.</a>
Benzinga provides daily reports on the stocks most popular with investors. Here are a few of this past week&#8217;s most bullish and bearish posts that are worth another look.
<h3 class="wp-block-heading">The Bulls</h3>
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40892076/palantir-key-enabler-of-clients-businesses-says-bullish-analyst-as-ceo-alex-karp-to">&#8220;Palantir &#8216;Key Enabler&#8217; Of Clients&#8217; Businesses, Says Bullish Analyst, As CEO Alex Karp Touts 10-Fold Growth From Current Levels,&#8221;</a> by <a href="https://www.benzinga.com/author/shanthi-rexaline">Shanthi Rexaline</a>, highlights Palantir Technologies Inc&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NYSE">PLTR</a>) potential tenfold growth as CEO Alex Karp emphasizes the company&#8217;s role in accelerating client success, with BofA Securities maintaining a bullish outlook and a $50 price target.
<a href="https://www.benzinga.com/markets/equities/24/09/40906505/walmart-division-sams-club-raises-wages-for-hourly-associates-a-strategic-move-to-stay-ahead-in-">&#8220;Walmart Division Sam&#8217;s Club Raises Wages For Hourly Associates: A Strategic Move To Stay Ahead In Retail,&#8221;</a> by <a href="https://www.benzinga.com/author/anusuya-lahiri-0">Anusuya Lahiri</a>, details Walmart Inc.&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) Sam&#8217;s Club wage increase for nearly 100,000 frontline workers, with hourly pay rising 3%-6% as part of a strategy to enhance worker retention and performance.
"<a href="https://www.benzinga.com/markets/cryptocurrency/24/09/40921872/dogecoin-will-outperform-bitcoin-in-2025-vows-trader-heres-what-the-follower-effect-means">Dogecoin Will Outperform Bitcoin In 2025, Vows Trader: Here&#8217;s What The &#8216;Follower Effect&#8217; Means,&#8221;</a> by <a href="https://www.benzinga.com/author/khyathi-dalal">Khyathi Dalal</a>, shares a crypto trader&#8217;s belief that Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>) will outperform Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) in 2025, benefiting from its rapid growth and leveraging Bitcoin's trajectory via the &#8220;follower effect.&#8221;
For additional bullish calls of the past week, check out the following:
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40898388/qualcomm-analyst-sees-opportunity-in-regaining-share-with-samsung-after-apple-reven">Qualcomm Analyst Sees Opportunity In &#8216;Regaining Share With Samsung&#8217; After Apple Revenue Squeeze</a>
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<a href="https://www.benzinga.com/m-a/24/09/40926078/nvidia-considers-165m-octoai-acquisition-aims-to-strengthen-ai-and-cloud-dominance">Nvidia Considers $165M OctoAI Acquisition, Aims to Strengthen AI and Cloud Dominance</a>
The Bears
<a href="https://www.benzinga.com/tech/24/09/40930388/apple-iphone-16-pre-orders-show-possible-low-demand-one-sign-could-point-to-company-breaking-this-em">&#8220;Apple iPhone 16 Pre-Orders Show Possible Low Demand, One Sign Could Point To Company Break With This Employee Rule,&#8221;</a> by <a href="https://www.benzinga.com/author/chris-katje">Chris Katje</a>, highlights concerns over weaker-than-expected demand for Apple Inc&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) iPhone 16, with an analyst citing early pre-order data of 37 million units and employee discounts available unusually early as potential warning signs.
"<a href="https://www.benzinga.com/trading-ideas/technicals/24/09/40942441/stock-of-the-day-home-depot-agrees-to-settlement-while-overbought-signals-warn-of-potent">Home Depot Agrees To Settlement, While Overbought Signals Warn Of Potential Sell-Off</a>," by <a href="https://www.benzinga.com/author/mark-putrino">Mark Putrino</a>, reports on Home Depot Inc&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) nearly $2 million settlement for overcharging allegations. At the same time, technical indicators suggest the stock may face a sell-off due to overbought conditions.
"<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40955933/brace-for-stagflation-after-feds-benevolence-warns-analyst-raising-5-corporate-red-">Brace For Stagflation After Fed&#8217;s Benevolence, Warns Analyst, Raising 5 Corporate Red Flags: &#8216;Inflation Is Transitory Mistake All Over Again&#8217;</a>," by <a href="https://www.benzinga.com/author/shanthi-rexaline">Shanthi Rexaline</a>, discusses Gordon Johnson&#8216;s warning that the Federal Reserve&#8216;s recent rate cuts could lead to stagflation, citing downturns at Skechers U.S.A., Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SKX#NYSE">SKX</a>) and FedEx Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDX#NYSE">FDX</a>) as red flags.
For more bearish takes, be sure to see these posts:
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<a href="https://www.benzinga.com/personal-finance/financial-advisors/24/09/40943386/mass-slaughter-wealth-manager-warns-of-market-correction-digital-disruption-a">&#8216;Mass Slaughter&#8217;: Wealth Manager Warns Of Market Correction, Digital Disruption As ETF, Passive Investing Goes Up And To The Right</a>
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40959748/exclusive-options-expert-warns-of-terrible-week-after-fridays-triple-witching">EXCLUSIVE: Options Expert Warns Of &#8216;Terrible Week&#8217; After Friday&#8217;s Triple Witching</a>
Keep up with all the latest breaking news and trading ideas by following<a href="https://twitter.com/Benzinga"> Benzinga</a><a href="http://twitter.com/Benzinga"> on Twitter</a>.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Benzinga Bulls And Bears: Apple, Palantir, Walmart, Home Depot — And An Analyst Predicts Dogecoin Will Outperform Bitcoin In 2025

The Federal Reserve announced Wednesday<a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40926026/federal-reserve-delivers-bold-0-5-rate-cut-signals-further-easing-ahead"> a deep 50 basis-point cut to its Fed funds rate, </a>which is likely to ease the pressure on consumers. An analyst, however, sees a return of recession along with stagnation.
What Happened: &#8220;Get ready for stagnation,&#8221; said GLJ Research&#8217;s Gordon Johnson, adding that, this is the &#8220;inflation is Transitory&#8221; mistake all over again. To make his case, he noted four corporate announcements suggesting the near could be challenging.
China Drags Skechers: Skechers U.S.A., Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SKX#NYSE">SKX</a>), which designs, manufactures and distributes footwear, sees softness in China&#8217;s business. CFO John Vandemore said, at the Wells Fargo Consumer Conference, &#8220;We've definitely seen worse conditions unfold in China than we expected for the back half of the year, so I would expect the back of the year's going to be more disappointing than what we had originally thought.&#8221; The shares reacted with a sharp tumble on Thursday, settling down 9.62% to $61.56
Rough Road For Mercedes-Benz: Also German automaker Mercedes-Benz Group AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MBGAF#OTC">MBGAF</a>) late Thursday said its 2024 earnings before interest and taxes will likely come in &#8220;significantly below&#8221; the previous year, citing a further deterioration in the macroeconomic environment, mainly in China. The automaker also said it expects its adjusted return on sales to be between 7.5% and 8.5%, down from its earlier forecast of 10% to 11%. The company&#8217;s shares listed on the Frankfurt exchange fell nearly 7%.
See Also: <a href="https://www.benzinga.com/money/best-depression-stocks">Best Depression Stocks</a>
FedEx Doesn&#8217;t Deliver: Package-shipping company FedEx Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDX#NYSE">FDX</a>) reported first-quarter earnings that fell year-over-year and missed expectations. The company reduced the high end of the full-year adjusted operating income guidance. The predicament was blamed on circumspect consumers favoring cheaper services over pricey and speedier options. The stock fell over 13% in premarket trading on Friday.
Lennar&#8217;s Underwhelming Quarter: Homebuilder Lennar Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>) reported roughly 8% revenue growth to $9.42 billion and earnings per share were up 10% but the average sales price of houses fell.
More Cuts At Warner Music: Entertainment and record-label company Warner Music Group Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WMG#NASDAQ">WMG</a>) said Thursday it plans to reduce its workforce by about 750 employees, representing 13% of its total headcount, more than the 10% expected earlier.
R-Word Still Floats Around: Chief Global Strategist of BCA Research Peter Berezin said in an X post that the 50 basis-point cut and another 50 bps reduction the central bank is penciling in before the year-end <a href="https://www.benzinga.com/news/earnings/24/09/40954521/wall-street-looks-to-pause-after-s-ps-record-performance-as-fed-rate-cut-euphoria-fades-and-hard-la">may not ensure a soft landing. </a>He pointed out to the previous two rate-cut cycles when recession followed following 100 basis-point cuts.
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), an exchange-traded fund that tracks the S&amp;P 500 Index, fell 0.26% to $567.76, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data. </a>The ETF, however, is up nearly 21% so far this year.
Read Next:
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Brace For Stagflation After Fed's Benevolence, Warns Analyst, Raising 5 Corporate Red Flags: 'Inflation Is Transitory Mistake All Over Again'

Skechers shares are trading lower after the company discussed near-term China challenges.

Skechers USA, Inc. ("Skechers" or the "Company") (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SKX#NYSE">SKX</a>), The Comfort Technology Company&#x2122; and a global footwear leader, today announced that John Vandemore, Chief Financial Officer, will participate in a fireside chat at the Wells Fargo Consumer Conference in Dana Point, CA on Thursday, September 19, 2024, at 11:00 a.m. PT / 2:00 p.m. ET.
The audio portion of the fireside chat will be available live and on replay for 90 days on the Company's website at <a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Finvestors.skechers.com%2F&amp;esheet=54119526&amp;newsitemid=20240912907774&amp;lan=en-US&amp;anchor=investors.skechers.com&amp;index=1&amp;md5=0ba3902a8610b4632014f0a177b26839">investors.skechers.com</a>.

Events

Watching Skechers U.S.A.; Shares Spike Lower, Co Currently Speaking At The Wells Fargo Consumer Conference Which Began At 2:00 p.m. ET

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock&#39;s price, but are they really important?
Let&#39;s take a look at what these Wall Street heavyweights have to say about Skechers (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/skx#NYSE">SKX</a>) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Skechers currently has an average brokerage recommendation of 1.08, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 12 brokerage firms. An ABR of 1.08 approximates between Strong Buy and Buy.
Of the 12 recommendations that derive the current ABR, 11 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 91.7% and 8.3% of all recommendations.
<h2>Brokerage Recommendation Trends for SKX</h2>
<img alt="Broker Rating Breakdown Chart for SKX" class="chart" src="https://staticx-tuner.zacks.com/images/yesopchart/brokerage_bar/SKX_09052024.png" style="width:100%" title="" /> 
The ABR suggests buying Skechers, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every &quot;Strong Sell&quot; recommendation, brokerage firms assign five &quot;Strong Buy&quot; recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock&#39;s future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock&#39;s price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
<h2>Zacks Rank Should Not Be Confused With ABR</h2>
In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers&#39; vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company&#39;s changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
<h2>Is SKX a Good Investment?</h2>
In terms of earnings estimate revisions for Skechers, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $4.16.
Analysts&#39; steady views regarding the company&#39;s earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Skechers.
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Skechers.
<a href="https://www.zacks.com/stock/news/2332015/brokers-suggest-investing-in-skechers-skx-read-this-before-placing-a-bet?cid=CS-BENZ-FT-fundamental_analysis|average_broker_rating-2332015">To read this article on Zacks.com click here.</a>

Brokers Suggest Investing in Skechers: Read This Before Placing a Bet

Skechers USA's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SKX#NYSE">SKX</a>) short percent of float has risen 22.43% since its last report. The company recently reported that it has 3.80 million shares sold short, which is 3.93% of all regular shares that are available for trading. Based on its trading volume, it would take traders 1.51 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Skechers USA Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1725461116_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Skechers USA has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Skechers USA's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Skechers USA's peer group average for short interest as a percentage of float is 6.94%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

(SKX) - Analyzing Skechers USA's Short Interest

Making a noteworthy insider sell on August 29, Michael Greenberg, President at Skechers USA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SKX#NYSE">SKX</a>), is reported in the latest SEC filing.
What Happened: Greenberg's recent move involves selling 91,950 shares of Skechers USA. This information is documented in a Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0001065837/000095017024101844//Archives/edgar/data/1065837/000095017024101844/0000950170-24-101844-index.htm">U.S. Securities and Exchange Commission</a> on Thursday. The total value is $5,542,065.
Tracking the Friday's morning session, Skechers USA shares are trading at $68.23, showing a down of 0.38%.
<h3>All You Need to Know About Skechers USA</h3>
Skechers USA Inc is a lifestyle footwear company under the Skechers GO brand name. Products offered include various styles of women's shoes, men's shoes, girl's shoes, boy's shoes, performance shoes, and work shoes. Allied products offered are apparel, bags, eyewear, toys, and more. Its products are available for sale at department and specialty stores, athletic and independent retailers, boutiques, and internet retailers. The company's operating segments includes Wholesale and Direct-to-Consumer. It generates maximum revenue from the Wholesale segment.
<h3>Skechers USA's Financial Performance</h3>
Revenue Growth: Skechers USA's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 7.21%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Navigating Financial Profits:
<ul>
<li>
Gross Margin: The company excels with a remarkable gross margin of 54.89%, indicating superior cost efficiency and profitability compared to its industry peers.
</li>
<li>
Earnings per Share (EPS): Skechers USA's EPS reflects a decline, falling below the industry average with a current EPS of 0.92.
</li>
</ul>
Debt Management: Skechers USA's debt-to-equity ratio is below the industry average at 0.42, reflecting a lower dependency on debt financing and a more conservative financial approach.
Valuation Metrics:
<ul>
<li>
Price to Earnings (P/E) Ratio: Skechers USA's P/E ratio of 18.36 is below the industry average, suggesting the stock may be undervalued.
</li>
<li>
Price to Sales (P/S) Ratio: The P/S ratio of 1.27 is lower than the industry average, implying a discounted valuation for Skechers USA's stock in relation to sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): Skechers USA's EV/EBITDA ratio, lower than industry averages at 10.33, indicates attractively priced shares.
</li>
</ul>
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
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<h3>Why Pay Attention to Insider Transactions</h3>
In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.
Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
<h3>Exploring Key Transaction Codes</h3>
Surveying the realm of stock transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001065837">Check Out The Full List Of Skechers USA's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Trades

Michael Greenberg Takes Money Off The Table, Sells $5.54M In Skechers USA Stock

Michael Greenberg, President at Skechers USA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SKX#NYSE">SKX</a>), disclosed an insider sell on August 29, according to a recent SEC filing.
What Happened: A Form 4 filing from the <a href="https://www.sec.gov/Archives/edgar/data/0001065837/000095017024101848//Archives/edgar/data/1065837/000095017024101848/0000950170-24-101848-index.htm">U.S. Securities and Exchange Commission</a> on Thursday showed that Greenberg sold 422,000 shares of Skechers USA. The total transaction amounted to $29,488,938. 
The latest market snapshot at Friday morning reveals Skechers USA shares down by 1.07%, trading at $67.75.
<h3>Delving into Skechers USA's Background</h3>
Skechers USA Inc is a lifestyle footwear company under the Skechers GO brand name. Products offered include various styles of women's shoes, men's shoes, girl's shoes, boy's shoes, performance shoes, and work shoes. Allied products offered are apparel, bags, eyewear, toys, and more. Its products are available for sale at department and specialty stores, athletic and independent retailers, boutiques, and internet retailers. The company's operating segments includes Wholesale and Direct-to-Consumer. It generates maximum revenue from the Wholesale segment.
<h3>Skechers USA: Financial Performance Dissected</h3>
Revenue Growth: Over the 3 months period, Skechers USA showcased positive performance, achieving a revenue growth rate of 7.21% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Interpreting Earnings Metrics:
<ul>
<li>
Gross Margin: The company maintains a high gross margin of 54.89%, indicating strong cost management and profitability compared to its peers.
</li>
<li>
Earnings per Share (EPS): With an EPS below industry norms, Skechers USA exhibits below-average bottom-line performance with a current EPS of 0.92.
</li>
</ul>
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.42.
Understanding Financial Valuation:
<ul>
<li>
Price to Earnings (P/E) Ratio: The P/E ratio of 18.36 is lower than the industry average, implying a discounted valuation for Skechers USA's stock.
</li>
<li>
Price to Sales (P/S) Ratio: The P/S ratio of 1.27 is lower than the industry average, implying a discounted valuation for Skechers USA's stock in relation to sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): With an EV/EBITDA ratio lower than industry averages at 10.33, Skechers USA could be considered undervalued.
</li>
</ul>
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
<a href="https://www.schwab.com/brokerage?aff=XEC">Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.</a>
<h3>Understanding the Significance of Insider Transactions</h3>
Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision. 
From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
<h3>Navigating the World of Insider Transaction Codes</h3>
Surveying the realm of stock transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001065837">Check Out The Full List Of Skechers USA's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Decision: Michael Greenberg Offloads $29.49M Worth Of Skechers USA Stock

DLTH

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RMBL

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TLYS

Shares of retail companies are trading higher following strong New Home Sales economic data for July. Also, these companies may be moving in sympathy with the market after Fed Chair Powell offered an optimistic U.S. economic outlook and indicated future rate cuts.

Carter&#39;s, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cri#NYSE">CRI</a>) has been doing well, thanks to its robust business strategies. The company is benefiting from the success of its pricing strategy, inventory-management efforts and better product offerings. Management is focused on creating a trend-right merchandise assortment, deepening relations with customers via marketing, expanding international markets and efficiently controlling expenses.
<h3>Delving Deeper</h3>
Carter&#39;s has made significant pricing actions to address market conditions and enhance profitability. In second-quarter 2024, the company saw improved price realization and profit margins, thanks to the strength in its product offerings and lower inbound freight rates, along with better inventory management.
We note that the company is focused on essential core products. This focus, coupled with a compelling value proposition, wherein average retail price points are around $11, makes Carter&#39;s an attractive option for budget-conscious consumers. Its pricing strategy involves keeping its brands competitively priced, which has proven effective in maintaining competitiveness in the market.
The company&#39;s new Oshkosh back-to-school launch, the premium fashion denim and bottoms, has received positive feedback from customers. Also, Little Planet and PurelySoft, its newest and sustainable brands, have been performing well. Management expects about $50 million with respect to the incremental investments in pricing and marketing in the second half of 2024. The impact of this price adjustment will be around $40 million on its annual operating income.
Although Carter&#39;s top line continued to witness the impacts of inflation on reduced consumer spending, the demand trends in the wholesale segment showed improvement in the second quarter. The company noted that its wholesale segment is gaining from leaner inventories with wholesale customers.
As a result, CRI registered growth in its U.S. Wholesale sales. In the reported quarter, it saw higher demand in its U.S. Wholesale segment, led by the exclusive brands. It experienced double-digit growth in the replenishment wholesale sales in the quarter. The company&#39;s supply chain continues to strengthen the business, offsetting lower product costs for the rest of this year. For the U.S. Wholesale business, management projects strong growth in 2024.
Carter&#39;s, which shares space with Wolverine (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/www#NYSE">WWW</a>), Skechers (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/skx#NYSE">SKX</a>) and Steven Madden (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/shoo#NASDAQ">SHOO</a>), focuses on efficient cost management and operational improvements. The company has been witnessing a notable expansion in its margin rates, driven in part by lower inbound freight rates, which were the significant contributor to the margins. In the second quarter, the gross margin expanded 150 basis points (bps) on lower product input costs, a decline in inbound freight rates and soft sales to the off-price channel, which were partly offset by inventory provisions. The adjusted operating margin increased 70 bps to 7%.
Margins have been driving the bottom line as well. In the second quarter, Carter&#39;s reported adjusted earnings of 76 cents per share, which surpassed the Zacks Consensus Estimate of 45 cents. The figure rose 18.8% from earnings of 64 cents per share in the prior-year quarter.
For the rest of 2024, Carter&#39;s anticipates lower product costs, which are expected to enable it to strengthen its product offerings and sharpen price points, thereby improving profitability. It anticipates inbound freight costs down more than 20%.
<h3>Other Stocks</h3>
Wolverine has been making significant strides in its transformation plan. The company is enhancing its consumer engagement with innovative marketing campaigns and strengthening its global presence. Its strategic initiatives emphasize consumer-centricity, with investments in talent acquisition, consumer insights and innovation. This approach enhances brand loyalty, fosters product innovation and drives long-term growth by meeting evolving consumer demands.&nbsp; With a consistent focus on product innovation and market positioning, Wolverine is well-positioned for continued growth and increased market share.
Skechers&#39; diversified portfolio of footwear, focusing on comfort-based products and leveraging a multi-brand strategy, is proving successful. The company is investing in global infrastructure, including retail stores, e-commerce platforms and distribution centers. It continues to expand its direct-to-consumer segment and bolsterinternational sales growth. Additionally, the company plans to open new stores, thereby enhancing its omnichannel capabilities. Its top line jumped 7.2% year over year, backed by a 6.9% rise in international sales and a 7.7% increase in domestic sales in second-quarter 2024.
Steven Madden&#39;s solid performance across its wholesale, direct-to-consumer and licensing segments highlights the execution of its robust strategic initiatives and positions it well for growth. The company is focused on leveraging digital capabilities, expanding categories beyond footwear, such as handbags and apparel, and enhancing its international market presence. In the second quarter, Steven Madden&#39;s revenues increased 17.6% year over year, with Wholesale revenues growing 22.5% and DTC revenues rising 6.4%.
<a href="https://www.zacks.com/stock/news/2322687/carter-s-cri-pricing-actions-wholesale-channel-bode-well?cid=CS-BENZ-FT-analyst_blog|zer_report_update-2322687">To read this article on Zacks.com click here.</a>

Earnings Beats

Small Cap

Management

SHOO

Carter's Pricing Actions & Wholesale Channel Bode Well

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market&#39;s attention and deliver solid returns. However, it isn&#39;t easy to find a great growth stock.
That&#39;s because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score, which looks beyond the traditional growth attributes to analyze a company&#39;s real growth prospects.
Skechers (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/skx#NYSE">SKX</a>) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
While there are numerous reasons why the stock of this shoe company is a great growth pick right now, we have highlighted three of the most important factors below:
<h2>Earnings Growth</h2>
Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Skechers is 25.4%, investors should actually focus on the projected growth. The company&#39;s EPS is expected to grow 19.1% this year, crushing the industry average, which calls for EPS growth of 13.2%.
<h2>Cash Flow Growth</h2>
While cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That&#39;s because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.
Right now, year-over-year cash flow growth for Skechers is 38.2%, which is higher than many of its peers. In fact, the rate compares to the industry average of -9.1%.
While investors should actually consider the current cash flow growth, it&#39;s worth taking a look at the historical rate too for putting the current reading into proper perspective. The company&#39;s annualized cash flow growth rate has been 12.1% over the past 3-5 years versus the industry average of 4.3%.
<h2>Promising Earnings Estimate Revisions</h2>
Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Skechers have been revising upward. The Zacks Consensus Estimate for the current year has surged 2.3% over the past month.
<h2>Bottom Line</h2>
Skechers has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
This combination positions Skechers well for outperformance, so growth investors may want to bet on it.
<a href="https://www.zacks.com/stock/news/2321552/3-reasons-growth-investors-will-love-skechers-skx?cid=CS-BENZ-FT-tale_of_the_tape|yseop_template_11_growth-2321552">To read this article on Zacks.com click here.</a>

3 Reasons Growth Investors Will Love Skechers

Investors in Skechers U.S.A., Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/skx#NYSE">SKX</a>) need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 17, 2025 $20.00 Call had some of the highest implied volatility of all equity options today.
<h3>What is Implied Volatility?</h3>
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
<h3>What do the Analysts Think?</h3>
Clearly, options traders are pricing in a big move for Skechers shares, but what is the fundamental picture for the company? Currently, Skechers is a Zacks Rank #2 (Buy) in the Shoes and Retail Apparel industry that ranks in the Top 23% of our Zacks Industry Rank. Over the last 60 days, three analysts have increased their earnings estimates for the current quarter, while one analyst has revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from earnings of $1.11 per share to $1.15 in that period.
Given the way analysts feel about Skechers right now, this huge implied volatility could mean there&#39;s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
<a href="https://www.zacks.com/stock/news/2318148/is-the-options-market-predicting-a-spike-in-skechers-skx-stock?cid=CS-BENZ-FT-tale_of_the_tape|options-2318148">To read this article on Zacks.com click here.</a>

Options

Is the Options Market Predicting a Spike in Skechers Stock?

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Shares of companies within the broader consumer discretionary sector are trading lower amid overall market weakness following weak US data.

Available Now For Men, Children, Agricultural Professionals, Construction Workers, Outdoor Enthusiasts, and Fashion-Minded Individuals

Skechers and John Deere Launch New Collection Combining Heritage and Comfort Technologies

Footwear stocks stumble after Skechers warns on near-term trends in China

Skechers USA (SKX – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Sam Poser from Wi...

Buy Rating for Skechers USA Amidst Global Sales Growth and U.S. Wholesale Recovery

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Bank of America Securities analyst Christopher Nardone reiterated a Buy rating on Skechers USA (SKX – Research Report) today and set a price target...

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Wells Fargo analyst Ike Boruchow maintained a Buy rating on Skechers USA (SKX – Research Report) today and set a price target of $83.00. The compan...

Wells Fargo Sticks to Their Buy Rating for Skechers USA (SKX)

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Skechers: Lacing Up For Earnings Growth, Current Prices Attractive For The Long Term

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Press Releases

Beach Volleyball Pros Andy Benesh and Miles Partain Join Skechers Roster

Skechers Announces Second Quarter 2024 Financial Results and Board Authorized $1 Billion Share Repurchase Program

Los Angeles Sparks Forward Rickea Jackson Joins Team Skechers

Skechers Launches Footwear Collection With John Deere

Howie Mandel Joins Skechers

Finding Everlasting Love: Petco Love and BOBS® from Skechers® Celebrate National Matchmaker Day

Skechers to Present at the Goldman Sachs Global Retailing Conference on September 4th

Skechers to Present at the Wells Fargo Consumer Conference on September 19th

MY GYM AND SKECHERS LAUNCH SKECHERS KIDS MONTH

Skechers to Report Third Quarter 2024 Financial Results on Thursday, October 24th

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