Auriga Maintains a 'Hold' on Skechers USA (SKX); Raising PT on Q1 Upside, But New Products Still in Test Mode

Auriga maintains a 'Hold' on Skechers USA (NYSE: SKX) price target raised to $16.00.

Analyst, Claire Gallacher, said, "SKX reported a better than expected Q1, driven by upside in gross margins. Inventory fell 43% on a 26% sales decline and gross margins benefitted as inventory levels are so lean there were little to no markdowns during the quarter. With right sized inventory in 2H, gross margins are expected to return to a more normalized 42-43% rate. The initial response the new GO-products has been favorable; however wholesale accounts are still testing the product for sell through rates and overall consumer interest. We are maintaining our rating until further visibility into fall/holiday orders of the new products."

For an analyst ratings summary and ratings history on Skechers USA click here. For more ratings news on Skechers USA click here.

Shares of Skechers USA closed at $14.92 yesterday.

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