Skechers (NYSE:SKX) has been gaining momentum following its impressive first-quarter 2015 performance. Shares of this designer, developer, marketer, and distributor of footwear hit a 52-week high of $109.97 last Friday, before closing at $109.78. This Zacks Rank #2 (Buy) stock has surged 97% year to date. Moreover, we believe that its strong fundamentals are capable of providing further impetus to the stock.
With increased focus on the new line of products, cost containment, inventory management, a global distribution platform and sturdy backlogs, Skechers remains confident of sustaining its growth momentum that was halted for a while when it delivered a negative earnings surprise of 2.3% in the final quarter of 2014.
However, Skechers rebounded strongly and commenced 2015 on an upbeat note. Although the first quarter was marred by foreign currency headwinds, adverse weather conditions and West Coast port-related dispute, the company delivered earnings of $1.10 per share that beat the Zacks Consensus Estimate by 8.9% and surged from 61 cents recorded in the year-ago quarter.
Net sales of $768 million outpaced the Zacks Consensus Estimate of $707 million and soared 40.5% from the prior-year quarter. The top line was driven by aggressive marketing initiatives, product innovation across multiple categories and healthy performance across all revenue channels. Moreover, the growth rate accelerated from 26.4% in the fourth quarter of 2014.
Skechers is now showcasing strength, and a positive sentiment is palpable among analysts covering the stock. This is apparent from the upward movement in the Zacks Consensus Estimate over the past 60 days. The Zacks Consensus Estimate increased 6.8% to $4.24 per share for 2015 and 6.6% to $5.36 per share for 2016.
Other Favorably Ranked Stocks
Other favorably ranked stocks in the retail space include Carters (NYSE:CRI), Columbia Sportswear (NASDAQ:COLM) and Nike (NYSE:NKE) all carrying a Zacks Rank #2.