Buy Online Authentic Shoes Concord 11s



I’m an experienced footwear executive who ran a 1600 store footwear aOlernKienOP
Sale Online Womens Slim Jenkins 9s group and was previously CFO of an international footwear group, so I know the industry well. I a private investor in SKX and, full disclosure, I own 33,500 shares.

The 50% fall in Skechers (NYSE:SKX) stock price, since aOlernKienOP
Where Can i Buy Bobcats 10s the summer high, presents aOlernKienOP
New Style Air Jordan 12 Retro Playoffs an interesting investment opportunity, considering the 6x forward P/E and attractive international growth prospects.

Initially, the stock was impacted by the filing of two frivolous legal claims by several individuals, questioning the health benefits of Shape ups, which the company has effectively countered with scientific aOlernKienOP
Real Womens Johnny Kilroy 9s studies aOlernKienOP
Your Best Choice To Buy Stealth 3s and approved technology patents in several countries.

More importantly, information started to emerge (highlighted by Susquehanna, who downgraded SKX to neutral) that, based on SportScan POS data and conversations with retailers, Shape up sales were lagging and increased discounting was evident, especially during the Labor aOlernKienOP
Buy Authentic Womens Shoes Barons 13s day weekend.

This data point was extrapolated to question the viability of the whole concept and therefore SKX profitability.

The Inventory Problem:

Certain family footwear companies doubled their Shape up inventories going into back to school (BTS), treating Shape ups as aOlernKienOP
Buy Online Authentic Orion 7s an athletic category (which is a huge BTS category) and this was a big mistake. Shape ups are not relevant to BTS and are purchased by regular folks who are finding that the technology helps their feet, legs, back or posture, like nurses, retail workers, factory workers, folks who spend a lot of time on their feet etc. Mums don purchase for themselves during BTS, hence the sales slowdown versus the doubled inventory. Note, Shape ups have so far been essentially a ladies category (85% of sales).

During the past 3 weeks Shape up sales have again aOlernKienOP
Sale Online Cheap Infrared 6s recovered and still represent THE best seller in ALL family footwear chains aOlernKienOP
Free Shipping Worldwide Grape 5s per my channel checks. So, while there is an excess inventory situation at retail, the sell through has improved such that the excess inventories can be worked off over time without excessive discounting.

But, this will likely slow the delivery of the Fall collection which has a much aOlernKienOP
100% Authentic Spizike Space Blue improved, less aesthetic profile which will appeal to a wider population. Analysts feel this inventory reaction, as well as climbing comp hurdles, will lower the 4th quarter sales growth rate y/y to ONLY 25%, versus the ytd 50% rate.

Inventory levels at SKX have been growing more slowly than sales and receivables, aOlernKienOP
Discount Price Reflective Silver 13s so SKX, internally, does not have an inventory problem. Inventory was y/y up 14% at the end of the 2nd quarter while sales increased 68%. But, the excess Shape up inventory is at the retailer, thanks to certain of them doubling inventory prior to BTS, so the flattering balance sheet metrics at the end of the 2nd QTR are a bit misleading. Analysts expect inventories to be up about 50% y/y at the end of the 3rd QTR, more in line with sales growth and reflecting push back from retailers on deliveries of new model Shape ups until excess retail inventories are worked off. $20 is the typical discount, especially on the more extreme colors and the $79.99 discounted price point is still holding up well on the original bottom models.

It not clear to what extent SKX is assisting some key retailers with the current discounted promotions, but SKX management are very disciplined about this process and any assistance is unlikely to cost more than a percent or two in company gross margin during the balance of the year.

With an ex factory cost of around $15 the XF Shape up carries a much higher gross margin than the company 47% average. So, this discounting to facilitate inventory balancing is not very painful financially.

Additionally, SKX has its own store network, outlet stores and the international operation to move excess inventories without unnecessary discounting (and international is just beginning the ramp in Shape up sales and can sell the original XF model aOlernKienOP
Discount Price Playoffs 13s without problems).

Store managers expect Shape ups to be a big Xmas gift item. January is also anticipated to be a strong month for all aOlernKienOP
Official Shop Online Spizike Bordeaux fitness aOlernKienOP
Great Deals On Air Jordan 4 Oreo 2015 related products (think gym and Weight Watchers subscription purchases stemming from New Year resolutions). So, retailers may end up being light on Shape up inventory by the end of January given current OTB caution. There is certainly no reason for SKX to be pushed into aggressive vendor financed discounting of basic / classic Shape ups by retailers who are temporarily overstocked. In my view there are several reasons why the market is wrong and therefore mispricing SKX:

There is still strong demand for the original rocker sole Shape up range, the XF. It has become a classic walking shoe which aOlernKienOP
New Air Jordan 9 Cool Grey 2012 has nothing to do with fashion. This is important from an accounting standpoint. There will be no need for aged inventory provisions on the basic XF Shape up range at year end given the continued significant sell through at retail and the reorder prospects for repeat customers as well as the ramp up in the sale of XF internationally.

Customers are still returning to repurchase the same model as they have experienced worthwhile health benefits. As long as shoes are priced under $100 repeat sales are continuing. It unfortunate that retailers doubled inventory levels triggering the desire to accelerate sales with discounting on what is now a item. SKX management is correct to resist aOlernKienOP
Website For Black Flip 3s excessive, panic level discounting of aOlernKienOP
Factory Outlet Online Sale Barons 13s the XF range. Much aOlernKienOP
Styles Of Cheap Gamma Blue 11s better to maintain pricing discipline on basic / feel good shoes and reduce the inventories in a systematic way. Uncontrolled discounting can destroy a brand.

Many customers now have multiple pairs of aOlernKienOP
Buy Online Mens Shoes Concord 11 Lows the XF product.

Shape ups are also becoming the defacto work wear shoe for many professions such as nursing, where people are on their feet all day.

The real (excess) inventory risk in the footwear industry is always aOlernKienOP
Website To Air Jordan 10 Doernbecher with the Chinese manufacturers who have to commit capacity and order materials based on SKX volume commitments. The product mix and specifics get firmed up as retailers allocate and release their open to buy. If sales of a brand, category or item decline, the Chinese factory is the biggest loser with idle capacity and materials. I understand SKX is pushing back the production schedule in response to retailer OTB tightening.

Like ! Share with friends on the following networks

This Post Has 27 Comments

  1. … [Trackback]

    […] There you will find 40878 more Infos: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  2. … [Trackback]

    […] Read More Infos here: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  3. … [Trackback]

    […] There you will find 41114 more Infos: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  4. … [Trackback]

    […] Read More Infos here: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  5. website here says:

    … [Trackback]

    […] Informations on that Topic: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  6. seks izle says:

    … [Trackback]

    […] Read More here: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  7. … [Trackback]

    […] Find More Informations here: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  8. … [Trackback]

    […] Read More Infos here: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  9. anami sikin says:

    … [Trackback]

    […] Find More Informations here: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  10. … [Trackback]

    […] Read More Infos here: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  11. … [Trackback]

    […] Read More here: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  12. … [Trackback]

    […] Informations on that Topic: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  13. … [Trackback]

    […] Read More Infos here: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  14. … [Trackback]

    […] There you will find 32417 more Infos: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  15. … [Trackback]

    […] Read More Infos here: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  16. … [Trackback]

    […] Informations on that Topic: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  17. now says:

    … [Trackback]

    […] Read More: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  18. … [Trackback]

    […] Find More Informations here: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  19. … [Trackback]

    […] Find More Informations here: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  20. … [Trackback]

    […] Read More here: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  21. … [Trackback]

    […] There you will find 34186 more Infos: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  22. … [Trackback]

    […] There you will find 72073 more Infos: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  23. … [Trackback]

    […] Read More Infos here: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  24. … [Trackback]

    […] Read More: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  25. … [Trackback]

    […] Read More: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  26. Law says:

    … [Trackback]

    […] Read More here: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

  27. … [Trackback]

    […] Read More: isoftwaretask.com/buy-online-authentic-shoes-concord-11s […]

Leave A Reply

You must be logged in to post a comment.

Menu