Skechers (SKX) to Report Q2 Earnings: What's in the Offing?
Skechers U.S.A., Inc. SKX is likely to register top-line growth from the respective year-ago reported figure when it reports second-quarter 2023 earnings on Jul 27 after the closing bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $1,904 million, indicating a rise of 2% from the prior-year quarter’s reported figure.
The consensus estimate for second-quarter earnings per share is 52 cents, suggesting a decrease of about 10.3% from the year-ago period’s tally. We note that the consensus mark has increased a penny over the past 30 days.
This designer, developer, marketer and distributor of lifestyle and performance footwear delivered an earnings surprise of 67.2% in the last reported quarter. SKX has a trailing four-quarter earnings surprise of 18.8%, on average.
Key Factors to Note
Skechers has been enhancing its digital capabilities, including augmenting its website features and mobile applications. Strong wholesale and direct-to-consumer businesses continue aiding SKX’s overall performance. Also, efforts and innovation related to comfort technology footwear have been yielding results. Our consensus estimate for the direct-to-consumer unit is pegged at $762.8 million, showing growth of 4.9% year over year for the quarter under review.
Skechers’ emphasis on a new line of products, store-remodeling projects, prudent inventory management and momentum in direct-to-consumer business are likely to have contributed to the company’s top-line performance in the quarter under review. SKX’s international business remains a significant sales driver. Management continues to expand SKX’s global reach in the footwear market through distribution networks, subsidiaries and joint ventures. Our consensus estimate for the wholesale’s international business is pegged at $722.2 million, showing growth of 16.6% year over year for the second quarter.
All the aforesaid factors are quite likely to have benefited Skechers’ performance during the quarter under review. On its last earnings call, management projected sales to be between $1.85 billion and $1.90 billion for the second quarter.
While the aforementioned factors raise optimism about the stock, the inflationary pressures cannot be ignored. Any deleverage in operating expenses is likely to have been an added deterrent. These weaknesses are expected to have weighed on the company’s bottom line during the quarter under review. Management had earlier envisioned earnings per share of 40-50 cents for the quarter under review.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Skechers this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Skechers has an Earnings ESP of +15.94% and a Zacks Rank of 3.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies, which according to our model, also have the right combination of elements to beat on earnings this season:
Marriott International MAR currently has an Earnings ESP of +8.44% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
MAR is likely to register top and bottom-line growth when it reports second-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $6.1 billion, suggesting 13.3% growth from the figure reported in the prior-year quarter.
The consensus mark for Marriott’s second-quarter earnings is pegged at $2.19 per share, suggesting year-over-year growth of 21.7%. The consensus mark has remained unchanged in the past 30 days. MAR has a trailing four-quarter earnings surprise of 8%, on average.
Boyd Gaming BYD currently has an Earnings ESP of +2.92% and a Zacks Rank of 3. BYD is likely to register top and bottom-line growth when it reports second-quarter 2023 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $890.7 million, suggesting 0.4% growth from the figure reported in the prior-year quarter.
The consensus mark for Boyd Gaming’s second-quarter earnings is pegged at $1.56 per share, suggesting 5.4% growth from earnings of $1.48 per share reported in the year-ago quarter. The consensus mark has remained unchanged in the past 30 days. BYD has a trailing four-quarter earnings surprise of 13.7%, on average.
lululemon athletica LULU currently has an Earnings ESP of +2.07% and a Zacks Rank of 3. LULU is likely to register top-line improvement when it reports second-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for lululemon athletica’s quarterly revenues is pegged at $2.2 billion, calling for growth of 15.8% from the prior-year quarter’s reported figure. The consensus mark for the quarterly earnings per share is $2.52, which suggests a 14.6% increase from the figure reported in the year-ago fiscal quarter. LULU has a trailing four-quarter earnings surprise of 9.9%, on average.
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Marriott International, Inc. (MAR) : Free Stock Analysis Report
Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report
lululemon athletica inc. (LULU) : Free Stock Analysis Report
Boyd Gaming Corporation (BYD) : Free Stock Analysis Report
