wynnbig 42yo Los Angeles, California, United States feelmeup4fun0 26yo Pittsburgh, Pennsylvania, United States jtandt2002 46yo Wake Forest, North Carolina, United States SubEquestrian 43yo Looking for Men Harmony, New Jersey, United States

An unheralded sneaker company has quietly been making billions — and it should terrify competitors

Instagram/Skechers

Skechers' sales are soaring.

The company's revenue in fiscal 2015 totaled $3.15 billion, which represents a 32% gain over the previous year.

Skechers' recent success can be attributed in part to consumers' growing preferences for comfortable, stylish shoes over basketball sneakers, according to a new report from Morgan Stanley.

"Athletic footwear fashion is changing, but trends are moving in a direction which is favorable to Skechers," analysts write. "Comfort styles, which Skechers sells very well, are hot and categories where Skechers does not play, e.g. basketball, are slowing."

Skechers' focus on comfort and walking over running has helped the company surpass Adidas to become the second-biggest sports-footwear company in the US, behind Nike, according to NPD data cited by The Wall Street Journal.

Instagram Embed:
http://instagram.com/p/BGSmAenN1gB/embed/
Width: 658px

Skechers has other opportunities for growth and success, according to the Morgan Stanley analysts.

The company is adding distribution centers overseas to prepare for international expansion.

And while unseasonably cool summer weather has been straining many other footwear companies, forcing them to rack up excess sandal inventory, Skechers' inventory has remained at healthy levels, the analysts write.

Instagram Embed:
http://instagram.com/p/BGH6HCPN1u2/embed/
Width: 658px

The company is also trying to gain more traction with teens, a valuable demographic that many other retailers are trying to attract.

Pop star Demi Lovato has a line for the company, and she's been appearing in commercials for the brand.

Youtube Embed:
http://www.youtube.com/embed/3biYBKLNBe8
Width: 560px
Height: 315px

But analysts warned that there could be some risks for Skechers.

Sports Authority liquidating all of its stores could impact the brand, for example, since Skechers shoes are sold there.

And it continues to face stiff competition in the athletic-footwear category from well-established brands such as Under Armour, Adidas, and Nike.

NOW WATCH: The only sneaker styles you can get away with at the office

more on Geo altCom dhkinkykitty2 49yo Looking for Men, Women, Couples (man and woman) or Couples (2 women) Long Beach, California, United States jdude123 42yo St. Paul, Minnesota, United States daddysgirl_ 38yo Looking for Men New York City, New York, United States CHINA_WHITE 30yo Ft Lauderdale, Florida, United States NJSwingingCpl 37yo Riverside, New Jersey, United States Lilpeep2 25yo Grants Pass, Oregon, United States lilfreaky76 49yo Henderson, Texas, United States katrina2011 48yo Looking for Men or Couples (man and woman) Sebastopol, California, United States catspurr6969 34yo Fort Madison, Iowa, United States sassysauce 45yo Looking for Men Fort Worth, Texas, United States luv2havegr8times 42yo Joliet, Illinois, United States marie5307 34yo Hillsboro, Oregon, United States