Bank of America has adjusted its price target for Skechers (SKX, Financial), reducing it to $58 from a previous estimate of $70. Despite this revision, the financial institution continues to uphold a Buy rating on the company's shares.
Skechers' first-quarter earnings per share (EPS) results were largely in line with expectations, excluding a favorable impact of 17 cents attributed to foreign exchange gains. Management, however, has withheld forward guidance due to uncertainties in global trade environments.
Current tariff structures are presenting immediate challenges to the company's profit margins. Nonetheless, the value proposition of the Skechers brand is anticipated to drive market share growth. Analysts believe that strategic sourcing and pricing adjustments will start to mitigate tariff effects by the fourth quarter, potentially bolstering the company's financial performance.
