NEW YORK (TheStreet) -- Shares of Sketchers USA (SKX) - Get Report are gaining by 2.50% to $32.38 on Monday morning, after the shoe retailer's COO and CFO David Weinberg appeared on CNBC's "Mad Money" with TheStreet's Jim Cramer and said he believed the company "can double the business in the next five years."
Weinberg appeared on Friday evening's addition of "Mad Money." On the previous day, Sketchers reported its 2015 third quarter earnings results, with revenue missing the consensus estimate. Sales, however, did grow by 27% year over year.
Cramer believes the revenue miss was the result of a stronger dollar, a $5 million personal injury lawsuit settlement and a rise in deferred rent expenses at the company's Fifth Avenue location in New York City, CNBC.com reported.
Weinberg sees the dramatic selloff of Sketchers' stock as an overreaction, CNBC noted.
"Business is very good and continues to be very good," he told Cramer.
"So, we are feeling pretty good, and we think we have great opportunity both in this quarter, in the first quarter of next year, and still think we can double the business in the next five years," Weinberg added.
Separately, TheStreet Ratings team rates SKECHERS U S A INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
We rate SKECHERS U S A INC (SKX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 14.5%. Since the same quarter one year prior, revenues rose by 27.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- SKX's debt-to-equity ratio is very low at 0.08 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SKX has a quick ratio of 1.78, which demonstrates the ability of the company to cover short-term liquidity needs.
- Powered by its strong earnings growth of 29.01% and other important driving factors, this stock has surged by 152.26% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SKX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- SKECHERS U S A INC has improved earnings per share by 29.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SKECHERS U S A INC increased its bottom line by earning $0.91 versus $0.36 in the prior year. This year, the market expects an improvement in earnings ($1.67 versus $0.91).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Textiles, Apparel & Luxury Goods industry average. The net income increased by 30.3% when compared to the same quarter one year prior, rising from $51.12 million to $66.60 million.
- You can view the full analysis from the report here: SKX