NEW YORK (TheStreet) -- Shares of Skechers (SKX) finished the day up by 3.58% to $105.65 on Tuesday, following a report from The Wall Street Journal saying the shoe maker is now in second place in the U.S. sports footwear market.
Skechers made up 5% of the sports footwear market for the quarter ended in March, data from retail tracker NPD Group shows, The Journal reported.
The company, which is responsible for the "Shape-Up" sneaker, is now second to Nike (NKE) and its popular Jordan brand, which accounted for 62% of athletic shoes sold in the U.S. during the most recent quarter.
The rise in Skechers sales highlights America's growing desire for less expensive shoes that may never actually be used for running, The Journal noted, adding that Skechers' sales grew by 29% last year to $2.4 billion.
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 the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 11.0%. Since the same quarter one year prior, revenues rose by 40.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- SKX's debt-to-equity ratio is very low at 0.10 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 1.77, which demonstrates the ability of the company to cover short-term liquidity needs.
- Powered by its strong earnings growth of 80.32% and other important driving factors, this stock has surged by 145.87% 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 reported significant earnings per share improvement 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 $2.72 versus $1.08 in the prior year. This year, the market expects an improvement in earnings ($4.17 versus $2.72).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income increased by 81.1% when compared to the same quarter one year prior, rising from $30.97 million to $56.08 million.
- You can view the full analysis from the report here: SKX Ratings Report