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Sketchers USA (SKX) Breaking Out

Jun 14 2010

Earlier this month, investors were presented with the companies latest product line of shows, Shape-ups. The stock moved higher shortly after the event held at the company’s Manhattan showroom. Also on the same day the company was presenting their new Shape-ups, they were also announcing an agreement with an Irish distributor to open stores across Ireland beginning in 2010. The agreement is with Shuz 4 U

and will nicely expand worldwide stores over the next 5 years.

Analysts have increased the earning expectations for the company over the past 3 months from 37 cents a share to 41 cents a share. The current quarter is expected to be 415% better than the same quarter last year. Next quarter will be 92% better, roughly, compared to last year. Yet the company’s price to earnings ratio is near 12.5 after trading on Monday. The PEG ratio is at 0.83, which is quite low for a growth company with 174% earnings growth for the year. Revenue is also improving 34.5% growth for the current year.

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