BUZZ-BofA cuts Skechers PT on tariff, China uncertainty

Reuters
03-24
BUZZ-BofA cuts Skechers PT on tariff, China uncertainty

** BofA Global Research cuts PT on shoemaker Skechers USA SKX.N to $70 from $76, cites tariffs and China uncertainty

** "The bigger incremental risk is whether Vietnam will be subject to tariffs; this would be a headwind for the entire footwear industry, not just Skechers and we expect pricing actions would need to be taken immediately if enacted" -brokerage

** SKX shares closed at $56.08 on Friday; median PT is $80 - data compiled by LSEG

** Lowers its 2025 gross margin forecast for SKX to down 40 bps from flat

** Adds China's macro challenges are still prevalent and weighing on the consumer

** Fourteen of 18 brokerages rate stock "buy" or higher, and 4 "hold" - LSEG data

** SKX shares down ~17% YTD; they rose nearly 8% in 2024

(Reporting by Ateev Bhandari in Bengaluru)

((Ateev.Bhandari@thomsonreuters.com;))

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