UBS maintained its Buy rating on Skechers USA (NYSE:SKX) but slightly trimmed its price target to $64 from $65, as the company braces for potential headwinds tied to the latest U.S. tariff measures.

While initial Q1 fundamentals appear strong based on UBS channel checks, analysts caution that full-year earnings guidance may face a meaningful revision. The firm expects Skechers to potentially cut its 2025 EPS outlook by $0.50 to $1.00, though the final adjustment could vary depending on how management navigates the tariff impact.

Investor expectations remain murky ahead of earnings, and UBS highlights a historically volatile stock reaction—averaging a 10% swing—around earnings events. With guidance changes likely and market uncertainty high, the risk/reward appears evenly balanced in the near term.