Is Skechers (SKX) a Good Stock to Buy Now?

Fiduciary Management, an investment management firm, published its “Small-Cap Equity” first quarter 2022 investor letter – a copy of which can be downloaded here. The FMI Small Cap portfolios declined approximately 4.4% (gross)/4.5% (NET) in the March quarter compared to a 7.53% drop in the Russell 2000 Index, and a 2.40% loss in the Russell 2000 Value Index. Areas where the portfolio had little exposure, such as Energy Minerals & Utilities, accounted for the performance difference between the Small Cap strategy and the Russell 2000 Value. Compared to the Russell 2000, sectors that helped performance included Commercial Services, Health Technology, and Technology Services.  Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Fiduciary Management Small Cap Equity mentioned Skechers U.S.A., Inc. (NYSE:SKX) and explained its insights for the company. Founded in 1992, Skechers U.S.A., Inc. (NYSE:SKX)  is a Manhattan Beach, California-based footwear company with a $6.2 billion market capitalization. Skechers U.S.A., Inc. (NYSE:SKX)  delivered a -8.39% return since the beginning of the year, while its 12-month returns are up by -11.29%. The stock closed at $39.76 per share on April 18, 2022.

Here is what Fiduciary Management Small Cap Equity has to say about Skechers U.S.A., Inc. (NYSE:SKX) in its Q1 2022 investor letter:

“Skechers is the third largest footwear brand in the world. The company designs, manufactures, and distributes footwear for men, women, and children in U.S. and international markets. Its products cover a wide range of footwear categories including casuals, dress casuals, sandals, boots, work boots, performance footwear, and kids footwear. The company operates in three business segments: Domestic Wholesale (23% of sales), International Wholesale (48% of sales), and Direct-to-Consumer (29% of sales). In total, international sales account for approximately 60% of revenue…” (Click here to see the full text)

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Our calculations show that Skechers U.S.A., Inc. (NYSE:SKX) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Skechers U.S.A., Inc. (NYSE:SKX) was in 31 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 35 funds in the previous quarter. Skechers U.S.A., Inc. (NYSE:SKX) delivered a -8.87% return in the past 3 months.

In September 2021, we published an article that includes Skechers U.S.A., Inc. (NYSE:SKX) in 10 Stocks to Buy Today According to Phil Frohlich’s Prescott Group Capital Management. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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