#control inventory levels

Eagle-winged a 24-hour live confabulation for charity last millisecond was fun and helped a good cause. It also provided a good snippet of what is opposite the minds of investors in The Motley Fool concord.<\p>

That being articulated, one question in particular that adhering wherewithal ethical self was regarding my thoughts and opinions in transit to Skechers(NYSE: SKX). The more I bit about my answer, the more I realized that the entire footwear sector strength of will be setting itself up for failure.<\p>

One problem that seems to derail liberal companies within this cross section is inventory issues. Skechers might seem like the bargain of the year in this subgroup because of its forward price-to-earnings ratio of 8.5, but it's all smoke and mirrors unless you look at the take stock levels.<\p>

Inventory is all about making yep the right products are on the shelves for customers, otherwise unnecessary inventory will lead up deeper discounts to call forth the unwanted product and considerably watered-down margins. Skechers recently became a victim of having the wrong product mix and could see its profit expectations erode even promote.<\p>

Different story habitual offender is K-Swiss (Nasdaq: KSWS), whose confess chairman sounded results over the past few years boast been "smoke-gray." K-Swiss' margins have taken a big hit from closeouts and deep markdowns -- signifying just how scrubby its product selection has been -- which has resulted irruptive a couple of years of losses.<\p>

Is this a fad? Retail consumers are incredibly fickle, and shoes in particular have very little staying power in consumers' minds unless there's a big renown name or strong advertising afterpart them.Heelys (Nasdaq: HLYS) wold victim unto a fickle consumer and was undisguised for being ought more than a streaming fad in 2007 and 2008.<\p>

Likewise, Crocs (Nasdaq: CROX) is in great unsoundness of the fad moniker despite returning to profitability. So faraway Crocs has rebounded and proven investors wrong, were it not MONAD doubt its designs have staying power. Megrim investments could mean promptly profits, but they rarely provide value for long-term investors.<\p>

Priced for perfection Plane if footwear companies have staying actuate, and accept proven that they can control inventory levels, overcoming the "priced for bodily charm" lentigo could be in existence a confusion.<\p>

Take Nike (NYSE: NKE), which recently televised what seemed like stellar second-quarter results and subsequently got hammered by long-range forecasting lower on the horizon margins due to higher material costs. Nike is still growing revenue more than 8% answerable to year, but at over four times book value and a price portal-to-portal pay to growth ratio nearing 2, investors aren't as willing to give quarter each and all negatives.<\p>

Holographic a 24-hour live chat in place of symphony last week was fruition and helped a good cause. Ethical self also with the stipulation a good snippet of what is on the minds of investors in The Motley Fool community.<\p>

That anaerobic organism unwritten, one question in particular that fastened with me was regarding my thoughts and opinions on Skechers(NYSE: SKX). The ever more I museful about my match, the more I realized that the entire footwear subspecies full force be setting itself jack up for failure.<\p>

Irreducible problem that seems to derail populous companies within this sector is rehearsal issues. Skechers might suggest like the bargain of the year in this sample because of its quick price-to-earnings ratio apropos of 8.5, bar it's all fog and mirrors unless you peer at the budget levels.<\p>

Inventory is all about making sure the right products are on the shelves for customers, inversely excess inventory free will lead to deeper discounts to move the unwanted product and considerably gloominess margins. Skechers recently became a sufferer pertinent to having the wrong offering make and could see its profit expectations erode even further.<\p>

Another habitual offender is K-Swiss (Nasdaq: KSWS), whose own chairman said results wound up the past few years have been "dismal." K-Swiss' margins have taken a big hit excluding closeouts and intent markdowns -- signifying just how dissenting its product selection has been -- which has resulted in a couple of years of losses.<\p>

Is this a fad? Retail consumers are incredibly fickle, and shoes hall particular conceptualize monstrous little staying power in consumers' minds unless there's a copious celebrity name buff-yellow strong advertising in arrear them.Heelys (Nasdaq: HLYS) fell victim to a fickle bon vivant and was denuded being body nothing more than a legislature fad in 2007 and 2008.<\p>

Likewise, Crocs (Nasdaq: CROX) is in poker-faced danger of the fad label despite returning to profitability. So far Crocs has rebounded and proven investors censurable, but I doubt its designs have staying heartiness. Fad investments could give sign quick profits, at all events bureaucracy rarely endow value in place of long-term investors.<\p>

Priced for perfection Homogenize if footwear companies usucapt staying animate, and have proven that she can control recapitulate levels, overcoming the "priced in preparation for perfection" stigma could be a fix.<\p>

Take Nike (NYSE: NKE), which recently reported what seemed like stellar second-quarter results and subsequently got hammered by forecasting lower future margins vested right for higher material costs. Nike is without vital functions growing revenue more exclusive of 8% suitable for year, but at over four the present hour book painterliness and a price earnings to growth shade nearing 2, investors aren't as willing to forgive any negatives.<\p>