LOS ANGELES - In a recent legal development, Skechers U.S.A., Inc. (NYSE:SKX), a prominent lifestyle and performance footwear company, received a favorable ruling from the Delaware Chancery Court. The Court dismissed with prejudice a shareholder derivative lawsuit filed on July 21, 2022, against both current and former members of Skechers' Board of Directors. This decision, announced today, signifies that the case has been closed and cannot be refiled.
The lawsuit's dismissal was met with positive remarks from Skechers President Michael Greenberg, who stated, "We are sincerely pleased with the Court's ruling, but it certainly comes as no surprise. We have always believed that this lawsuit should not have been permitted to proceed. We feel vindicated that the Court agreed."
Skechers, headquartered in Southern California, is a Fortune 500® company that offers a variety of footwear, apparel, and accessories. Its products are distributed in more than 180 countries and territories, available through both digital platforms and a network of company-owned and third-party retail stores totaling approximately 5,170.
The news of the lawsuit's dismissal may be of interest to investors and market watchers following Skechers, as it removes a potential legal uncertainty for the company.
It's important to note that the information regarding the lawsuit's dismissal is based on a press release statement from Skechers U.S.A., Inc.
InvestingPro Insights
In light of the recent legal victory for Skechers U.S.A., Inc. (NYSE:SKX), investors may be reassessing the company's position and potential for growth. According to real-time data from InvestingPro, Skechers boasts a market capitalization of $8.82 billion, reflecting its significant presence in the footwear industry. With a P/E ratio of 16.19 and an even more attractive adjusted P/E ratio of 16.23 for the last twelve months as of Q4 2023, the company appears to be trading at a reasonable valuation relative to its near-term earnings growth potential.
The company's financial health is further underscored by a PEG ratio of 0.35, which suggests that Skechers' stock price is potentially undervalued based on its earnings growth rate. Additionally, Skechers has demonstrated solid financial performance with revenue growth of 7.47% over the last twelve months as of Q4 2023, indicating a steady upward trajectory in its business operations.
Turning to InvestingPro Tips, it's noteworthy that Skechers has experienced a strong return over the last three months, with a price total return of 15.02%. This performance is indicative of investor confidence and market recognition of the company's robust fundamentals. Moreover, Skechers' liquid assets exceed its short-term obligations, providing the company with financial flexibility and resilience. For investors seeking more detailed analysis and insights, InvestingPro offers additional tips, including observations on the company's moderate level of debt and its profitability over the last twelve months. To explore these insights further, visit https://www.investing.com/pro/SKX and consider using coupon code SFY24 to get an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 to get an additional 10% off a 1-year InvestingPro+ subscription.
As Skechers continues to navigate the competitive retail landscape post-lawsuit, these financial metrics and insights could prove valuable to investors monitoring the company's progress and market potential.
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