SKX Stock Surges Above 50- and 200-Day SMAs: Is Now the Time to Invest?

Skechers U.S.A., Inc. is showing sustained upward momentum as its shares trade decisively above key moving averages, reflecting growing investor confidence in the company’s financial stability and growth trajectory. The latest price action underscores a positive market sentiment that aligns with Skechers’ ongoing efforts to expand its brand footprint, optimize its direct-to-consumer (DTC) strategy, and strengthen wholesale and international operations. Investors are watching the stock’s path toward its recent highs as a gauge of the durability of this upswing, aided by a robust blend of brand diversification, channel expansion, and international momentum.

Technical momentum and market positioning

Skechers has demonstrated a clear technical strength by maintaining a price level that sits above both the 50-day and 200-day simple moving averages (SMAs). This positioning is widely interpreted in the market as a signal of price stability and a long-term bullish trend, suggesting that the stock could continue to trend higher as buyers stay engaged. On the most recent trading session, Skechers closed at $70.09, a level that sits comfortably above the 50-day SMA of $65.62 and the 200-day SMA of $65.60. The close above these moving averages reinforces the interpretation of a sustained uptrend and provides a technical backdrop for further upside potential.

From a broader price performance perspective, Skechers trades about 6.7% below its 52-week high of $75.09, which was reached on June 12, 2024. That proximity to the high watermark indicates room for upside if momentum persists. Over the past year, SKX has gained about 10.9%, a performance that, while positive, stands in contrast to the recent decline experienced by the broader Shoes and Retail Apparel industry, which registered a 26.2% year-over-year decline. This relative outperformance highlights Skechers’ ability to navigate market headwinds and maintain an appreciable advantage in a tough sector environment.

The stock’s technical backdrop, when viewed alongside recent momentum readings, supports investor confidence that Skechers can sustain its upside trajectory. The combination of price stability, a strong relative performance against peers, and a favorable risk-reward dynamic given its current valuation framework contributes to the narrative of Skechers’ ongoing appeal to both momentum-driven traders and long-term value-oriented investors. As Skechers continues to execute on its brand strategy and channel initiatives, the market’s focus remains on the durability of its growth engines, including DTC expansion and wholesale strength, and how these will translate into earnings progression in the quarters ahead.

Core drivers behind momentum

• A consistent pattern of price action above key moving averages signals ongoing demand and investor belief in Skechers’ earnings power.
• The stock’s resilience in the face of industry-wide softness underscores Skechers’ differentiated positioning within the footwear space.
• The relative strength versus the broader Shoes and Retail Apparel group suggests Skechers is capturing market share or maintaining its premium appeal through product innovation and brand equity.
• The valuation narrative, including favorable forward-looking metrics, reinforces the sense that Skechers remains attractively valued for growth-oriented and value-focused investors alike.

Skechers’ multi-brand strategy and DTC growth

Skechers is advancing a diversified branding strategy designed to broaden its appeal across a wide customer base while preserving its hallmark emphasis on comfort. This multi-brand approach, coupled with a focus on comfort-driven footwear, positions the company to capture demand from different consumer segments and geographic regions. Strategic investments in infrastructure—particularly in the realms of e-commerce and retail operations—are strengthening Skechers’ omnichannel capabilities and accelerating its direct-to-consumer expansion.

The DTC segment has emerged as a pivotal growth lever for Skechers. In the third quarter of 2024, DTC sales climbed 9.6% year over year to reach $931.7 million. This growth was propelled by a robust consumer appetite for Skechers’ comfort innovations and the company’s improved direct engagement with shoppers through its online and brick-and-mortar channels. International DTC sales rose 14.4% in the same period, while domestic DTC sales grew 3.7%. These figures collectively illustrate how Skechers’ DTC strategy is contributing meaningfully to overall revenue growth, with international markets proving particularly dynamic in expanding the brand’s footprint.

The strength of the DTC channel complements Skechers’ wholesale operations, enabling a balanced go-to-market approach that leverages both owned platforms and strategic partnerships to maximize reach and profitability. A well-executed DTC strategy supports enhanced customer engagement, better control over the retail experience, and a stronger data-driven understanding of shopper preferences—factors that are central to sustaining long-term brand loyalty and higher average order value.

Strategic implications of DTC momentum

• DTC growth signals a shift toward direct customer relationships, enabling Skechers to capture higher-margin sales and optimize pricing, promotions, and product assortments in real time.
• The international DTC performance highlights the importance of global reach, localized assortments, and seamless cross-border shopping experiences.
• The domestic DTC uplift, while smaller in percentage terms, contributes to a diversified revenue mix and more stable cash flows through premium direct channels.
• The DTC acceleration complements wholesale gains, reinforcing Skechers’ ability to scale its business through multiple channels while maintaining a strong brand narrative centered on comfort and style.

Wholesale momentum and international expansion

Skechers’ wholesale business remains a central driver of its growth trajectory, with the company anticipating continued momentum through fiscal 2024. In the third quarter, wholesale sales surged 20.6% year over year to $1.42 billion, reflecting strong demand across both domestic and international markets. Domestic wholesale sales rose by 26%, while international wholesale sales climbed 18%, underscoring the company’s ability to balance strength in home markets with successful expansion abroad.

Domestic performance in the wholesale segment showcased the enduring popularity of Skechers’ comfort-driven technologies, delivering double-digit growth across men’s, women’s, and children’s footwear categories. This broad-based strength indicates that Skechers’ core product benefits—comfort, performance, and lifestyle relevance—continue to resonate across diverse consumer groups. Internationally, the European, Middle East, and Africa (EMEA) region led wholesale growth, supported by improved shipping efficiency and the ongoing appeal of Skechers’ innovative product lineup. The overall wholesale momentum aligns with Skechers’ broader strategy to pair competitive wholesale partnerships with a robust DTC framework, enabling a cohesive growth engine.

International markets and retail expansion remain at the heart of Skechers’ growth strategy. During the third quarter, international revenues rose 16.4% year over year, accounting for 61% of total revenues, underscoring the substantial contribution of non-domestic markets to Skechers’ top line. Within international performance, the EMEA region posted a standout 30.2% growth, followed by a 13.6% rise in the Americas and a 7.4% improvement in the Asia-Pacific (APAC) region. Notable performances were observed in key markets such as Japan, Korea, and India, which helped to propel the global wholesale and retail expansion narrative.

Regional dynamics and strategic significance

• The fact that international revenues now constitute a majority of Skechers’ total suggests that the company’s expansion strategy is bearing fruit on a global scale, with a diversified revenue base reducing reliance on any single geography.
• The notable EMEA performance indicates strong product-market fit, effective localization, and improved logistics that enable faster delivery times and better service levels across European markets.
• The Americas’ growth highlights continued demand for Skechers’ comfort-driven product lines, with both domestic and Latin American markets contributing meaningfully to wholesale and retail results.
• The APAC region’s growth, though more moderate, signals ongoing opportunities across Asia as Skechers continues to expand its store network and e-commerce capabilities in high-potential markets.

Global footprint and Prague flagship expansion

Global expansion remains a core pillar of Skechers’ growth plan, with store openings and new retail formats playing a key role in increasing consumer access to the brand. In line with its European expansion strategy, Skechers recently opened a flagship store on Prague’s High Street, a location chosen to showcase the brand’s footwear, apparel, and accessories across a modern and sustainable retail environment. The flagship store spans 596 square meters and is designed with sustainable materials, reflecting Skechers’ commitment to responsible sourcing and environmental stewardship. The store highlights the company’s signature comfort innovations, reinforcing the core value proposition that distinguishes Skechers in a crowded footwear market.

This Prague flagship is also part of Skechers’ broader Europe push, which includes expanding its retail presence to enhance accessibility for both locals and international visitors. The Prague location stands as one of eight Skechers stores currently operating in the Czech Republic, illustrating a dedicated approach to increasing visibility and foot traffic across Central and Eastern Europe. The expansion strategy in Europe aligns with Skechers’ aim to bolster its omnichannel capabilities—integrating brick-and-m mortar experiences with a robust online platform—to support sustained growth in a region that presents meaningful demand for comfortable, fashionable footwear.

European expansion and brand reach

• The Prague flagship enhances Skechers’ footprint in Central Europe, reinforcing the company’s strategy to diversify revenue sources beyond traditional markets.
• The emphasis on sustainable materials in store design aligns with growing consumer interest in responsible retail experiences and eco-conscious product narratives.
• The Czech Republic’s retail landscape, supported by eight Skechers stores, provides a testing ground for regional assortment strategies, logistics optimization, and cross-border e-commerce integration.
• The European expansion complements ongoing international growth, enabling Skechers to showcase product innovations and expand DTC access to a broader audience.

Valuation, growth outlook, and the investment thesis

From a valuation perspective, Skechers presents an appealing proposition within the footwear industry. The stock trades at a forward 12-month price-to-earnings ratio of 14.45, a multiple that sits below both the industry average of 26.31 and the Consumer Discretionary sector average of 18.26. This relative undervaluation underscores Skechers’ potential as a compelling entry point for investors seeking value without sacrificing growth prospects. A forward-looking metric such as this helps explain why Skechers is viewed as an attractive value play within its sector, reinforcing the argument that the company can deliver above-market earnings growth while trading at a lower multiple.

Adding to the favorable valuation narrative is Skechers’ Value Score of A, which reflects an overall assessment of the stock’s attractiveness based on qualitative and quantitative factors. Coupled with the company’s current market position, expansion momentum, and earnings trajectory, these indicators contribute to a positive investment thesis that highlights Skechers as a stock worth watching for a diversified equity portfolio.

Investors may also be encouraged by the company’s longer-term sales ambitions. Skechers has articulated an ambitious growth target of reaching $10 billion in sales by 2026, a goal that signals management’s confidence in the brand’s ability to scale across channels and geographies. Achieving such an objective would require continued strength in both wholesale and DTC channels, sustained international expansion, and ongoing investment in product innovation and customer experience enhancements. The combination of a strong technical setup, a diversified growth engine, and a valuation that appears favorable relative to peers creates a multi-faceted investment narrative for Skechers.

Comprehensive takeaway for investors

• The stock’s current trading position above major moving averages supports a constructive longer-term view.
• A diversified brand approach and a growing DTC footprint provide multiple avenues for revenue growth and margin expansion.
• Wholesale momentum, paired with rapid international expansion, underpins Skechers’ ability to sustain above-market performance.
• A strategic flagship presence in Europe, exemplified by the Prague store, reinforces Skechers’ global reach and omnichannel capabilities.
• Valuation remains compelling relative to industry peers, supported by a favorable forward P/E and A-grade Value Score, with a clearly articulated growth target that could drive upside if executed effectively.

Peers and market context

Skechers sits in a competitive landscape with other prominent players in the apparel and footwear space, some of which are highlighted as notable picks in contemporary market analyses. The broader market commentary notes several other high-quality opportunities with strong buy-side sentiment and compelling growth trajectories. Notably, Gap, Abercrombie & Fitch, and Steven Madden are recognized as ranked equities with favorable outlooks.

• Gap, Inc. (GAP) is described as a premier international specialty retailer offering a diverse assortment of clothing, accessories, and personal care products. It carries a Zacks Rank of #1 (Strong Buy). The consensus for Gap’s fiscal 2025 earnings and sales indicates robust growth of about 41.3% and 0.8%, respectively, versus fiscal 2024. Gap has delivered a trailing four-quarter earnings surprise averaging 101.2%. This positioning underscores Gap’s strong earnings trajectory and potential market upside as it navigates its own strategic initiatives.

• Abercrombie & Fitch Co. (ANF) operates as a specialty retailer of premium casual apparel and currently holds a Zacks Rank of #1 (Strong Buy). The consensus estimates for fiscal 2025 suggest significant earnings and revenue expansion of roughly 69.3% and 15%, respectively, compared with fiscal 2024. Abercrombie has also delivered a trailing four-quarter earnings surprise averaging 14.8%, highlighting a track record of outperforming expectations in recent quarters.

• Steven Madden, Ltd. (SHOO) designs, sources, markets, and sells fashion-forward footwear, holding a Zacks Rank of #2. The consensus estimates for Steven Madden’s 2024 earnings and sales indicate growth of approximately 8.6% and 13.6%, respectively, from the prior year. SHOO delivered a trailing four-quarter earnings surprise averaging 9.8%, reflecting steady execution and market demand for its offerings.

These peer insights help contextualize Skechers’ positioning within a dynamic footwear and fashion ecosystem. While Skechers emphasizes a blend of DTC expansion, wholesale strength, and international growth, the peers above illustrate a broader market environment where brand differentiation, channel strategy, and earnings execution play pivotal roles in determining relative performance.

Market context and implications for Skechers

• The presence of multiple strong-rated peers suggests a competitive landscape that rewards firms with clear growth narratives, efficient operations, and robust balance sheets.
• Skechers’ focus on DTC and international expansion complements the strengths exhibited by Gap, Abercrombie, and Steven Madden in their respective strategic journeys, offering potential cross-industry insights into consumer engagement, omni-channel integration, and geographic diversification.
• The contrast between Skechers’ 50/200-day SMA-driven momentum and peers’ valuation and earnings trajectories could create a differentiated risk-reward profile for investors seeking exposure to the footwear and fashion sector.

Conclusion

Skechers U.S.A., Inc. continues to demonstrate a compelling blend of technical strength, strategic growth initiatives, and a diversified channel approach that reinforces its position in the global footwear market. The stock’s recent performance—trading above the 50-day and 200-day moving averages and closing near supportive levels—supports a bullish view grounded in fundamental momentum and expanding market reach. Skechers’ multi-brand strategy and its emphasis on comfort-focused products, combined with a robust DTC platform and sustained wholesale growth, position the company to capitalize on continued demand both domestically and internationally.

International expansion remains a central growth engine, with the international share of revenues accounting for a majority of total sales and the European region driving notable gains within wholesale. The new flagship store in Prague exemplifies the company’s commitment to expanding its European footprint and reinforcing its omnichannel strategy through enhanced store experiences and sustainable retail design. The robust Q3 performance in DTC and wholesale, alongside a solid international push, underpins Skechers’ growth narrative and aligns with management’s ambitious goal of achieving $10 billion in sales by 2026.

From a valuation perspective, Skechers presents an attractive entry point given its forward P/E multiple and the company’s A-grade Value Score, reinforcing the view that Skechers offers compelling upside potential relative to its peers. The combination of strong earnings momentum, an expanding global footprint, and disciplined financial management supports a positive investment thesis for investors seeking exposure to the footwear sector through a well-positioned brand with a proven track record of execution. Skechers’ ongoing initiatives to strengthen its omnichannel capabilities, accelerate DTC growth, and optimize wholesale partnerships will be critical to sustaining momentum and delivering the targeted growth outcomes in the years ahead.