We recently compiled a list of the 10 Companies Echo Friday's Market Pessimism. In this article, we are going to take a look at where Skechers USA Inc. (NYSE:SKX) stands against the other stocks.

Ten companies were hit hard on Friday as investors digested disappointing earnings performance and dismal outlook guidance for 2025.

The shares' performance traded in line with Wall Street's major indices, with the Dow Jones losing 0.99 percent, the S&P 500 falling 0.95 percent, and the tech-heavy Nasdaq diving 1.36 percent.

To come up with Friday’s worst performers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A sportsperson running with style and grace, embodying the company's performance footwear.

Skechers USA Inc. (NYSE:SKX)

Footwear giant Skechers USA Inc. fell by 12.68 percent on Friday to finish at $66.03 apiece as investor sentiment was weighed down by potential headwinds and uncertainties from the growing trade tensions between the US and China.

According to reports citing SKX Chief Finance Officer John Vandemore, President Donald Trump’s move to impose tariffs on China has impacted SKX’s visibility and will likely lead to a reallocation of certain production, vendor concessions, and pricing.

“While we have not yet fully factored their potential impact and our response into the following guidance, it will likely comprise a combination of actions, including the reallocation of certain production, vendor concessions, and pricing,” he said.

The drop in its valuation demonstrated investor pessimism as traders snubbed reports of SKX’s impressive performance last year.

Last quarter, SKX said attributable net income rose by 13.9 percent to $99.3 million from the $87.2 million reported in the same period a year earlier, pushing attributable net profit for the full year 2024 higher by 17 percent to $639.5 million from $545.8 million.

Overall SKX ranks 5th on our list of Friday's worst performers. While we acknowledge the potential of SKX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SKX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

 

Disclosure: None. This article is originally published at Insider Monkey.