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By Dhirendra Tripathi
Investing.com – Skechers (NYSE:SKX) hit a record after a solid March quarter performance led Morgan Stanley (NYSE:MS) to upgrade the stock to overweight.
The footwear maker said warmer weather and increased Covid-19 vaccination rates around the world were bringing traffic back to its retail stores, while the “digital business continues to be a very strong growth driver.”
Analyst Kimberly Greenberger had an equal-weight earlier and a target of $44 for the stock.
The shares eased off a bit later and traded 13% higher.
In the quarter ended March, Skechers nearly doubled its profit to 63 cents per share compared to 32 cents a year ago. Revenue was up 15% to $1.43 billion.
U.S. sales rose 8.5% while internationally sales were up as much as 20.2%. Sales from China saw a triple-digit growth, the company said.
Skechers expects 2021 revenues to come between $5.8 billion and $5.9 billion, while EPS is projected to be between $1.80 and $2.