SKECHERS USA, Inc. (SKX) reported even better than expected fourth quarter results on Feb 17 after it had already pre-announced on Jan 12 that it would have record sales for the quarter.

SKECHERS, which sells footwear for men, women and children, had said that it would see earnings per share of “over” 50 cents per share. The Zacks Consensus Estimate had risen to 52 cents ahead of the official results but the company blew through that, posting 58 cents per share.

It has now surprised four quarters in a row by an average of 195.81%.

Sales increased 30.4% to a record $388.6 million from $298.1 million in the fourth quarter of 2008.

The company saw strong momentum in the second half of the year Incorporatedluding strong sales and gross margin improvement in the United States and double digit growth in many markets.

2010 Outlook

For 2010, SKECHERS is extremely optimistic. It expects to break ground in the first or second quarter on a new 1.8 million square foot distribution center in California.

SKECHERS also started the year with its backlog up 40%.

The company is focused on growing its international business and has added international subsidiaries in South America and distributors in Mexico and India.

A web site re-design is also expected to boost e-commerce business.

Zacks Consensus Estimates Soar

Analysts are equally as bullish on the company as the first quarter Zacks Consensus jumped 10 cents to 89 cents per share in the last month.

The 2010 Zacks Consensus climbed 21% to $2.35 from $1.94 per share in just the prior 30 days as 3 estimates moved higher. Analysts now expect 2010 earnings growth of 102.37%.

Value Fundamentals

SKECHERS still has excellent value fundamentals. Its gotten slightly cheaper than when I profiled it in early February. It’s now trading at 13.15x forward earnings compared to 14.96 a month ago. It’s price to book ratio is still an attractive 1.91.

SKECHERS remains a Zacks #1 Rank (strong buy) stock.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service.

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