When you're the host of a LAN server you can see peoples skin but the guests see everyone else as an Alex
MC-82739
On LAN Other Players Skin Is Alex
Resolved
Duplicate
0
Unionic (Josh K.)
(Unassigned)
Unconfirmed
Minecraft 1.8.7, Minecraft 1.8.8
Retrieved
Thank you for your report.
However, your ticket has been resolved as a duplicate.
This issue has been linked to the original bugreport: MC-52974. You can find or add further information on that report.
Please search before reporting any bugs, as it's likely that one exists already.