Skechers USA down after below-estimate annual forecasts; brokerages cut PT

Skechers USA

07/02/2025 12:32

** Shares of footwear maker Skechers USA  SKX.N  down 12.3%
at $66.30 premarket
    ** Co post market close on Thursday forecast annual sales,
profit below estimates after Q4 results miss
    ** Brokerage TD Cowen cuts PT on stock to $83 from $93
    ** Says margins pressured by macro-weakness in China and
currency exchange impacts need to improve
    ** Brokerage BofA also cuts PT by $4 to $76, cites high
growth footwear peers given co's lower margin profile
    ** Sees Q1 to be the low point of the year in terms of sales
growth and operating margin deleverage due to expected continued
weakness in China, elevated marketing spend
    ** Says China will determine whether SKX can beat its
initial sales guidance as brokerage sees it to be highly
dependent on speed of macroeconomic recovery
    ** 14 of 18 brokerages rate the stock "buy" or higher, and
four "hold"; with a median PT of $80
    ** SKX rose 7.9% in 2024

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com;))