All the Odor-Eaters in the world couldn't cover up the stink coming from the current economic crisis. Skechers (NYSE:SKX) is getting a good whiff.

In its third-quarter conference call, the shoe purveyor reported that quarterly earnings topped out at $28.3 million, or $0.60 per diluted share, increases of 15% and 13%, respectively, over the same period last year. This bested Wall Street's EPS forecast by about 7%.

There's that stench again
A stagnant retail environment did a soft-shoe on Skechers' domestic sales, but double-digit revenue growth in its international ventures compensated. Proceeds from outside the United States, which contributed a fourth of total sales, provided the company with a quarterly increase of about 2% overall, and allowed its first-ever quarter over $400 million.

With a strong focus on product development and aggressive brand marketing, Skechers looks to expand its position in the global marketplace by focusing on its new Brazilian subsidiary and establishing operations with its joint ventures in China and Hong Kong.

Survival of the fittest
While virtually everyone nips at Nike's (NYSE:NKE) heels, Skechers goes toe-to-toe with Crocs (NASDAQ:CROX), K-Swiss (NASDAQ:KSWS), Deckers Outdoor (NYSE:DECK), and Timberland (NYSE:TBL). Its foothold lies in consumers' perception of its products as both affordable and stylish.

Outdoor signage in key cities, print and TV advertising, and mall kiosks are among the outlets that the company will utilize to target customers this year. But a footwear company's earnings call is only as impressive as the celebrities lined up to endorse its products. Skechers has called upon American singing idol David Cook as well as High School Musical stars Vanessa Hudgens and Ashley Tisdale. The trio equates to one-and-one-half J-Lo's.

The Foolish takeaway
Be warned that inventory levels have been trending upward, a common symptom of weakening sales. However, the company has a quick ratio over 2, enterprise value-to-EBITDA of 2.8, and a PEG ratio under 0.5.

In other words, it's considered highly liquid, cheaper than dirt, and, under normal circumstances, undervalued. But current market conditions are anything but normal, so investors may want to just keep an eye on Skechers. 

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Chris Jones does not own shares of any companies mentioned. Crocs is a Motley Fool Hidden Gems Pay Dirt recommendation. The Motley Fool's disclosure policy won't be stepped on.