Fashion footwear is hot, and the stock of sneaker-maker Skechers USA is kicking into high gear. Shares of this Manhattan Beach, Cal., company, which deals in casual and active footwear, are up 76% since October 2005, following a post-Katrina sales slump.
The company mainly sells its shoes to department and specialty retail stores, though it also owns 125 stores that peddle Skechers products exclusively. Profits reached $45 million in 2005, a whopping 90% increase from over 2004's net of $27 million. Sales rose 9%, to $1 billion, in 2005.
Skechers has been diligent in its quest to adapt to the changing tastes of its customers by consistently upgrading styles and designs. The company also recently launched three new designer, or "lifestyle," brands, which have seen healthy sales so far this year. Same-store sales -- sales at stores open at least a year -- rose steadily in 2005, with most of the growth occurring in Skechers stores, which carry the company's newest in-season footwear.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Susquehanna Financial Group analysts John Shanley and Christopher Svezia say the strength of the Skechers brand is "encouraging" and predict that demand will remain strong beyond the fall 2006 shopping season. They maintain a "positive" rating for the stock.
At $22, Skechers shares (symbol SKX) trade at 18 times the average of analysts' 2006 earnings estimates of $1.20 per share, according to Thomson First Call.
--Katy Marquart
-
Is There Such a Thing As a Safe Stock? 17 Safe-Enough IdeasNo stock is completely safe, but we can make educated guesses about which ones are likely to provide smooth sailing.
-
We're 64 with $4.3 million and can't agree on when to retire.I want to retire now and pay for health insurance until we get Medicare. My wife says we should work 10 more months. Who's right?
-
Missed an RMD? How to Avoid That (and the Penalty) Next TimeIf you miss your RMDs, you could face a hefty fine. Here are four ways to stay on top of your payments — and on the right side of the IRS.
-
If You'd Put $1,000 Into Caterpillar Stock 20 Years Ago, Here's What You'd Have TodayCaterpillar stock has been a remarkably resilient market beater for a very long time.
-
I'm a 55-Year-Old Dad. Here’s How My 28-Year-Old Daughter Showed Me That AXP Is Still a Solid InvestmentAmerican Express stock is still a solid investment because management understands the value of its brand and is building a wide moat around it.
-
If You'd Put $1,000 Into AMD Stock 20 Years Ago, Here's What You'd Have TodayAdvanced Micro Devices stock is soaring thanks to AI, but as a buy-and-hold bet, it's been a market laggard.
-
If You'd Put $1,000 Into UPS Stock 20 Years Ago, Here's What You'd Have TodayUnited Parcel Service stock has been a massive long-term laggard.
-
How the Stock Market Performed in the First Year of Trump's Second TermSix months after President Donald Trump's inauguration, take a look at how the stock market has performed.
-
If You'd Put $1,000 Into Lowe's Stock 20 Years Ago, Here's What You'd Have TodayLowe's stock has delivered disappointing returns recently, but it's been a great holding for truly patient investors.
-
If You'd Put $1,000 Into 3M Stock 20 Years Ago, Here's What You'd Have TodayMMM stock has been a pit of despair for truly long-term shareholders.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
