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Skechers' 'cool' value gives it room to run like Nike: Barron's

Reporting by Alwyn Scott; Editing by Marguerita Choy
DECEMBER 9, 2019 / 9:00 AM

NEW YORK (Reuters) - Shoemaker Skechers USA Inc (SKX.N) is expected to post earnings growth on pace with Nike Inc (NKE.N) over the next three years, giving its relatively low valuation a chance of catching up, financial newspaper Barron’s reported in its Dec. 7 edition.

Analysts estimate Skechers’ earnings-per-share will rise 15% this year and in 2020, and 12% in 2021. Yet Nike trades at about 30 times analysts’ future earnings estimates, compared with 16 times for Sketchers, even after Skechers shares soared more than 75% this year, the paper said.

Skechers sells trainers, dress shoes, sandals and boots - a broader range than Nike - and has grown over the past 20 years to become the third-largest global footwear brand by revenue, after Nike and Adidas AG (ADSGn.DE), the paper said.

Skechers styles, often priced at $50 to $70, are perceived as “cool” and good value, an edge its bigger rivals lack, Barron’s added.

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