Shape Up or Ship Out (NYSE: SKX)

Skechers (NYSE: SKX) has been at the heel of the shoe market for quite some time. The stock currently resides at $19.99, down considerably from its $40 plus highs. The stock trades with a 6 PE ratio and is earning record revenue and profits. So why is it down? One of the reasons is attributed to its Shape-Ups brand of toning shoes. It's one thing if Skechers' customers believe that these shoes will actually help you lose weight and become more fit. However, other companies such as privately owned New Balance with it's TrueBalance shoes that do the same thing are taking share as well. Even Nike (NYSE: NKE) has a similar type of shoe, and no company wants to be in Nike's line of fire. Skechers' once unique proposition is now becoming a commodity. Skechers better be thinking of the next innovate product before its stock gets booted.