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Bear of the Day: Skechers U.S.A., Inc. (SKX)
Skechers U.S.A., Inc. (SKX) is a footwear standout that's tanked nearly 30% in 2025.
SKX is falling alongside its tumbling earnings outlook. The company's EPS outlook fell again after its Q1 earnings report on April 24, which saw Skechers pull its financial guidance for the year amid tariff chaos.
What's Going on With Skechers?
Skechers U.S.A. designs, develops, and markets a wide range of lifestyle and performance footwear for men, women, and children, along with apparel and accessories. Skechers has grown for years due to its unique branding and ability to go after different consumers than Nike and other footwear giants.
The company is well-known for comfortable shoes across various categories and styles. It also ventured into performance footwear, including soccer cleats endorsed by pro athletes.
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Skechers has posted impressive growth over the last several decades, including a massive jump over the last few years. SKX grew its first quarter 2025 revenue by 7.1%. The sneaker company also easily topped our adjusted Q1 earnings estimate by 15% when it reported on April 24.
Unfortunately, Skechers is caught up in the tariff war, withdrawing the annual 2025 guidance it provided earlier this year. It also decided not to provide a new forecast due to “macroeconomic uncertainty stemming from global trade policies.”
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Analysts have slashed their outlooks since then. Skechers’ FY25 consensus EPS estimate dropped to $3.61 a share from $4.42 just seven days ago, while its 2026 estimate slipped 23% since its Q1 report.
Time to Stay Away from SKX Stock?
The company’s recent negative earnings revisions trend extends a downward spiral that began in early 2025, landing Skechers a Zacks Rank #5 (Strong Sell).
Skechers is still projected to post 7% sales growth in 2025 and 2026, but those estimates could be revised lower at any time.
SKX stock is trading below its 200-week moving average and at historically oversold RSI levels. Yet it is a risky proposition to call a bottom on Skechers in real time given the trade war unknowns.
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Skechers U.S.A., Inc. (SKX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).