HomeMost PopularInvestingFactors Likely to Influence Skechers' (SKX) Q1 Earnings

Factors Likely to Influence Skechers’ (SKX) Q1 Earnings

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Skechers U.S.A., Inc. SKX is likely to register an increase in the top line when it reports first-quarter 2024 earnings results on Apr 25 after market close. The Zacks Consensus Estimate for revenues is pegged at $2,188 million, which indicates an improvement of 9.3% from the prior-year reported figure.

The company, renowned for its design, marketing and distribution of footwear, apparel and accessories, is expected to observe a year-over-year increase in its bottom line. The Zacks Consensus Estimate for first-quarter earnings per share has been stable at $1.10 in the past 30 days, which suggests an improvement of 7.8% from the year-ago period.

Skechers has maintained a trailing four-quarter earnings surprise of 45.7%, on average. In the last reported quarter, this Goleta, CA-based companyโ€™s bottom line outperformed the Zacks Consensus Estimate by a margin of 7.7%.

Key Factors to Note

Skechersโ€™ focused strategy on growing its direct-to-consumer business and providing innovative, superior-quality products emerges as a key factor in driving revenues. The brandโ€™s commitment to expanding its retail footprint, enhancing omnichannel capabilities and reinforcing distribution strengths plays a crucial role in solidifying its market stance and securing continuous growth.

We anticipate direct-to-consumer revenues to increase 18.7% in the first quarter. This growth is fueled by expected improvements of 15.7% and 20.8% in the domestic and international direct-to-consumer businesses, respectively.

Skechers did face significant challenges in its wholesale segment. However, the tides are now turning in favor of the company, thanks to positive order trends for the first half of the year. We foresee sales from the wholesale channel to increase 4.5% in the quarter.

SKXโ€™s international business has been a major contributor to its sales. Skechersโ€™ success in international markets reflects its ability to adapt to diverse consumer preferences, capitalize on emerging trends and leverage effective distribution strategies tailored to each regionโ€™s unique dynamics. As Skechers continues to expand its global presence and strengthen its brand recognition, the international segment remains a key pillar of the companyโ€™s growth strategy.

Skechers U.S.A., Inc. Price, Consensus and EPS Surprise

Skechers U.S.A., Inc. Price, Consensus and EPS Surprise

Skechers U.S.A., Inc. price-consensus-eps-surprise-chart | Skechers U.S.A., Inc. Quote

What the Zacks Model Unveils

Our proven model conclusively predicts earnings beat for Skechers this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.

Skechers currently has a Zacks Rank #3 and an Earnings ESP of +0.34%. You can uncover the best stocks to buy or sell before theyโ€™re reported with our Earnings ESP Filter.

3 More Stocks With the Favorable Combination

Here are three more companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat this season:

Ross Stores ROST currently has an Earnings ESP of +0.34% and carries a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter fiscal 2024 earnings per share is pegged at $1.34, up 22.9% year over year. You can see the complete list of todayโ€™s Zacks #1 Rank stocks here.

Ross Storesโ€™ top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.82 billion, which indicates an increase of 7.3% from the figure reported in the prior-year quarter. ROST has a trailing four-quarter earnings surprise of 9.1%, on average.

Tractor Supply Company TSCO currently has an Earnings ESP of +0.50% and a Zacks Rank #2. The company is expected to register a bottom-line increase when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of $1.70 suggests a rise of 3% from the year-ago quarter.

Tractor Supply Companyโ€™s top line is anticipated to advance year over year. The consensus mark for revenues is pegged at $3.40 billion, which implies an increase of 3% from the figure reported in the year-ago quarter. TSCO has a trailing four-quarter earnings surprise of 0.2%, on average.

Deckers Outdoor Corporation DECK currently has an Earnings ESP of +16.99% and a Zacks Rank #3. The company is likely to register a bottom-line decrease when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $2.59 suggests a decline of 25.1% from the year-ago quarter.

Deckersโ€™ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $874.4 million, which indicates an increase of 10.5% from the figure reported in the prior-year quarter. DECK has a trailing four-quarter earnings surprise of 32.1%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Tractor Supply Company (TSCO) : Free Stock Analysis Report

Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report

Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report

Ross Stores, Inc. (ROST) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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