Have you evaluated the performance of Skechers' (SKX) international operations during the quarter that concluded in March 2025? Considering the extensive worldwide presence of this shoe company, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
Our review of SKX's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
The recent quarter saw the company's total revenue reaching $2.41 billion, marking an improvement of 7.1% from the prior-year quarter. Next, we'll examine the breakdown of SKX's revenue from abroad to comprehend the significance of its international presence.
Decoding SKX's International Revenue Trends
Of the total revenue, $718.2 million came from Europe, Middle East & Africa during the last fiscal quarter, accounting for 29.78%. This represented a surprise of +1.35% as analysts had expected the region to contribute $708.61 million to the total revenue. In comparison, the region contributed $478.6 million, or 21.63%, and $627.6 million, or 27.87%, to total revenue in the previous and year-ago quarters, respectively.
Asia Pacific generated $589 million in revenues for the company in the last quarter, constituting 24.42% of the total. This represented a surprise of -4.78% compared to the $618.58 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia Pacific accounted for $642.4 million (29.04%), and in the year-ago quarter, it contributed $604.5 million (26.85%) to the total revenue.
Revenue Forecasts for the International Markets
Wall Street analysts expect Skechers to report a total revenue of $2.34 billion in the current fiscal quarter, which suggests an increase of 8.4% from the prior-year quarter. Revenue shares from Europe, Middle East & Africa and Asia Pacific are predicted to be 24.7% and 25.1%, corresponding to amounts of $576.35 million and $587.38 million, respectively.
For the full year, a total revenue of $9.59 billion is expected for the company, reflecting an increase of 6.9% from the year before. The revenues from Europe, Middle East & Africa and Asia Pacific are expected to make up 26.7% and 25.8% of this total, corresponding to $2.56 billion and $2.47 billion respectively.
The Bottom Line
Skechers' leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
Currently, Skechers holds a Zacks Rank #5 (Strong Sell), signifying its potential to underperform the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
A Review of Skechers' Recent Stock Market Performance
Over the preceding four weeks, the stock's value has appreciated by 27.2%, against an upturn of 9.1% in the Zacks S&P 500 composite. In parallel, the Zacks Consumer Discretionary sector, which counts Skechers among its entities, has appreciated by 16.2%. Over the past three months, the company's shares have seen a decline of 2.5% versus the S&P 500's 3.1% decline. The sector overall has witnessed a decline of 1.9% over the same period.
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Skechers U.S.A., Inc. (SKX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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