After reporting great earnings and a 25% increase in sales, this company is shaking the dust off their running shoes and preparing for a breakout.
Skechers has had a rocky four months after a 3:1 split back in October and saw some weakness in the retail sector. That is behind them now and shares are on the verge of a breakout.
NEW BULLISH Plays
SKX - Skechers - Company Profile
Skechers designs, develops, markets and distributes footwear for men, women and children, as well as performance footwear for men and women under the Skechers GO brand. They currently operate more than 1,340 retail stores.
On Wednesday, the company was named the Brand of the Year for the second consecutive year by the Footwear Industry Awards. They were also named Ladies Brand of the Year.
In the 25,000 runner LA Marathon on February 14th, performance athlete "Meb" finished second in the event wearing the custom Skechers GOmeb Speed 3 shoe. Meb secured his place in the 2016 Olympics with the second place finish. The first place finisher, Weldon Kirui, was also wearing the Skechers GOmeb Speed 3 shoes.
They reported Q4 earnings of 20 cents that matched estimates. Revenue rose +27% to $722.7 million and easily beat estimates for $648 million. The CEO said they saw high single digit sales gains in the domestic business and a 41% increase in the international business. The goal is to grow sales 50% over the next couple of years.
The positive earnings and continued positive headlines lifted shares from the $26 level two weeks ago to $33 today. The $33.25 level is strong resistance. If SKX can close above $33.50 they should be off to the races, pardon the pun.
The next material resistance is near $46.
With a SKX trade at $33.55
Buy SKX shares, initial stop loss $30.85
Buy April $35 call, currently $1.15
NEW BEARISH Plays
No New Bearish Plays