Why is Skechers Stock Down in 2018?

TL;DR

Skechers stock has potential due to strong fundamentals, international growth, but faces China and tariff concerns.

Transcript

Chris Hill: Question from Matt in Akron, Ohio. "What are your thoughts on Skechers? I have long felt it is a solid company with very little debt and a good growth story. I know the China fears are playing into the decline in price. Is there something else driving it lower that I'm missing?" Great question! Is he missing something? Seth Jayson: If h... Read More

Key Insights

• 😨 Skechers faces challenges from China fears and potential tariff impacts.
• 🌍 International operations are a significant growth driver for Skechers.
• ❓ The company's diversified portfolio and market presence contribute to its resilience.
• 🍉 Solid financial fundamentals make Skechers an attractive long-term investment opportunity.
• 💪 Strong margins and cash flow add to Skechers' investment appeal.
• 🎁 The decline in stock price presents a buying opportunity for investors.
• 🈹 Skechers' steady performance and discounted valuation make it an intriguing investment option.

Questions & Answers

Q: What factors are influencing the decline in Skechers stock price?

Skechers faces China fears, potential tariff impacts, and a strong dollar, contributing to the stock price decline.

Q: How does Skechers' international business contribute to its overall performance?

Skechers' international operations account for more than half of its business, showing promising growth and success.

Q: What makes Skechers a potentially attractive long-term investment?

Strong margins, good cash flow, and a solid balance sheet make Skechers an appealing long-term investment opportunity.

Q: How has the stock price movement affected investor sentiment towards Skechers?

The significant drop in Skechers' stock price from the low 40s to low 20s has piqued investor interest due to improved valuation.

Summary & Key Takeaways

• Skechers, despite China fears, has low debt and international growth potential.

• The company operates 3,000 stores worldwide and leads in various shoe categories.

• Strong margins, cash flow, and balance sheet make Skechers a long-term bet.