U.S. shoemaker Skechers USA Inc’s future earning estimates offer huge growth potential

As per a report from Barron, a financial newspaper, shoemaker Skechers USA Inc is likely to report an earnings growth on par with Nike Inc over the next three years.

According to analysts’ estimate, Skechers’ earnings-per-share is likely to rise by 15% in 2019 and in 2020, and by 12% in 2021. And yet “Nike trades at about 30 times analysts’ future earnings estimates, compared with 16 times for Sketchers, even after Skechers shares soared more than 75% this year”.

Skechers basket of offerings includes boots, trainers, dress shoes, and sandals – a range that is broader compared to that of Nike’s; moreover this range has grown over the past 20 years to become the third-largest global footwear brand by revenue, after Nike and Adidas AG, reads the report from Barron.

The report goes on to read, Skechers branded products, often priced between $50 to $70, are perceived as “cool” and offer good value and an edge over its bigger rivals.

“Nike and Adidas are reluctant to identify as value brands, giving Skechers room to run,” said Barron.



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