Skechers USA (SKX) Defended at Sterne Agee CRT Amid DSW-Linked Weakness

Sterne Agee CRT analyst Sam Poser defended Skechers USA (NYSE: SKX) amid today's weakness tied to disappointing results at DSW (NYSE: DSW). The analyst reiterated a Buy rating and price target of $54.

Poser commented, "We remain very positive SKX and would use today's weakness to add to/start positions. Today's weakness is due to disappointing results from DSW. As was laid out by SKX management, retailers within the moderate channel, such as DSW, are overinventoried in brands other than SKX, and are in the midst of liquidating that inventory. According to SportScanInfo (SSI), last week's SKX sales increased 16.5% with ASPs up 5.7%. SKX sales in the month of October increased 19.2% with ASPs up 5%. SKX sales in fiscal 3Q increased 23.7% with ASPs up 4%. Strong ASP show the health of the brand. Checks from 3 of the top 10 SKX retailers indicate that those retailers are planning the SKX business up high teens to up over 20% for 2016."

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 $31.55 yesterday.

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