Skechers Down 26% Could Find Buyers Here

Skechers (SKX) is getting scorched on a SSS miss: +4.5% vs. expectations of +5.2%.  Their back-to-school forecast also missed the boat, but sales are still +12% year-over-year for the September quarter.

Even though Skecher’s shows a penchant for disappointing, the numbers will once again be too compelling to step away from for value investors.

Currently Skechers (at $24.50) is trading at 11.7x 2019 earnings of $2.10 – growth of 16%.

Buyers may wait a day to let the sellers shake out, but this is getting close for them.  It is a mess, but getting to be a cheap mess.