You’ll never believe which brand is Nike’s biggest threat because I certainly didn’t.
According to Business Insider, Skechers is one of the hottest shoe brands today. Yesterday, April 23, shares of the company rose 13% to an lifetime high of $85.66 and topped off at $86.49. Their last quarter revenues came in at $767.9 million, far above the expected $703.2 million. Earnings per share also exceeded estimates, $1.10 instead of $1 (Bloomberg). In 2014, Skechers saw record sales of $2.4 billion and its share price has doubled in the past year.
Skechers CEO Robert Greenberg had this to say in the earnings release:
Having just achieved a new annual sales record of $2.4 billion in 2014, we expected the momentum to continue into 2015 … Our expanding product line and marketing focus is broadening our demographic reach, including Demi Lovato to tweens and teens as she supports our Skechers Sport line, to avid golfers as Matt Kuchar plays in Skechers GO Golf, and to tech savvy kids with Game Kicks, the shoe with a memory game built in.
Many of finances analysts including Wunderlich, Jeff Van Sinderen of B.Riley, and Scott Krasik of BB&T have all upgraded the stock from “neutral” to “buy.” According to Wunderlich, “the Skechers brand remains in high demand across all geographies and demographics, and opportunities to grow distribution and increase penetration around the globe remain plentiful.”
Analysts are also saying that Skechers one of the only companies in the footwear sector experiencing this kind of surge-like growth.
Did you see Skechers coming for Nike? Share your thoughts in the comments below.
Source: Business Insider / Image via REUTERS/Shannon Stapleton
aren’t they related to la gear? if you check the Wikipedia info..
funny you ask that bc the first thing I thought when reading this article is Skechers is like the new LA Gear. they may have more staying power bc now business is so much more international. but in the US it seems like another fad brand. hot now but will be forgotten w/in 10 years and probably much sooner than that
Sketchers was actually a fad brand back when I was in HS. They came out with a few cool shoes in cool colorways that everyone wanted then they sort of fell off the map. The fact that they’ve stayed around this entire time and have real staying power now shows they arent a fad any longer.
The price revolution is on! People are tired of the high prices!
I wish…..
P.S. Yesterday was April 30.