Why Skechers stock gained 16% in April
Skechers (NYSE: SKX) shareholders beat a booming rally last month. The stock gained 16% in April, against a peak of 5.2% in the S&P 500, according to data provided by S&P Global Market Intelligence.
The boost came on top of a significant rally for the shoe giant, which grew by more than 70% last year.
Investors applauded Skechers’ latest earnings release on April 22, showing improving demand trends. Sales rose 15% through the end of March despite continued pandemic pressures in some markets, management revealed.
“The momentum we saw in the second half of 2020,” COO David Weinberg told investors, “continued into the first quarter.” Skechers also noted a sharp increase in profitability thanks to the rise in average prices.
CEO Robert Greenberg and his team are calling for sales to land between $ 5.8 billion and $ 5.9 billion this fiscal year, including about $ 1.5 billion of that haul in the current quarter. That second quarter result would mark an increase of more than 100% from a year earlier, when lockdowns and social distancing efforts caused a 42% drop.
The magnitude of this rebound in growth explains why investors remain optimistic about this activity while consumer spending remains healthy.
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