U.S. markets closed
  • S&P 500

    4,136.48
    -43.28 (-1.04%)
     
  • Dow 30

    33,926.01
    -127.89 (-0.38%)
     
  • Nasdaq

    12,006.96
    -193.84 (-1.59%)
     
  • Russell 2000

    1,985.53
    -15.69 (-0.78%)
     
  • Crude Oil

    73.23
    -2.65 (-3.49%)
     
  • Gold

    1,877.70
    -53.10 (-2.75%)
     
  • Silver

    22.40
    -1.22 (-5.17%)
     
  • EUR/USD

    1.0791
    -0.0120 (-1.10%)
     
  • 10-Yr Bond

    3.5320
    +0.1360 (+4.00%)
     
  • GBP/USD

    1.2036
    -0.0193 (-1.58%)
     
  • USD/JPY

    131.1500
    +2.5460 (+1.98%)
     
  • BTC-USD

    22,914.47
    -526.31 (-2.25%)
     
  • CMC Crypto 200

    535.42
    -1.43 (-0.27%)
     
  • FTSE 100

    7,901.80
    +81.64 (+1.04%)
     
  • Nikkei 225

    27,509.46
    +107.36 (+0.39%)
     

Skechers Overtakes Adidas; Becomes No 2 in U.S. Footwear - Analyst Blog

According to media reports, Skechers USA Inc. SKX overtook Adidas AG ADDYY to occupy the number #2 spot in the U.S. sports footwear market. The company has been gaining ground steadily by offering stylish and casual shoes at a much compelling price than the conventional athletic brands.

As per the retail tracker NPD Group, Skechers held 5% of the sports footwear market in the U.S. for the quarter ended Mar 2015, exceeding Adidas’ 4.6% share which now holds the third place. Nike, Inc. NKE and its Jordan Brand still remains the undisputed champion of the sports footwear market holding the largest share of 62%.

Skechers has benefited from the so-called athleisure trend that has been sweeping the retail sector in the U.S. This rise in the company’s market share is attributable to the growing preference for cheaper shoes in the country. People now want to avail cheaper sports shoes, which they can put on to make a fashion statement irrespective of whether they work out or not.

With increased focus on the new line of products, cost containment, inventory management, a global distribution platform and sturdy backlogs, the company is confident of sustaining its growth momentum. Moreover, Skechers’ international business remains a significant sales growth driver for the company.

We note that Skechers' net sales surged 29% to a record $2.4 billion in 2014. So far in the year, shares of this Zacks Rank #3 (Hold) stock have soared almost 90%.

With obesity becoming a major concern, people turning toward practicing yoga and working out, demand for sportswear is bound to increase. As a result we expect Skechers to hold its place in the near future.

A better-ranked stock in the retail sector is Carter's, Inc. CRI, sporting a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
NIKE INC-B (NKE): Free Stock Analysis Report
 
SKECHERS USA-A (SKX): Free Stock Analysis Report
 
ADIDAS AG-ADR (ADDYY): Free Stock Analysis Report
 
CARTERS INC (CRI): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research