Why Skechers Is Getting Crushed
Sketchers released mixed second-quarter financial results after the markets closed on Thursday. It didn’t help the company that analysts piled on, sending shares down even further.
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Skechers USA Inc. (NYSE: SKX) released its second-quarter financial results after the markets closed on Thursday. It didn’t help the company that analysts piled on, sending shares down even further.
The company said that it had $0.29 in EPS and $1.13 billion in revenue, compared with consensus estimates that called for $0.40 in EPS and revenue of $1.13 billion. In the same period of last year, Sketchers said it had EPS of $0.38 on $1.03 billion.
During the most recent quarter, sales grew 10.6% as a result of a 24.9% increase in the international wholesale business and 12.8% increase in its global retail business.
Second-quarter same-store sales in company-owned stores worldwide increased 4.0%, including 2.2% in the United States and 11.3% internationally.
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Looking ahead to the third quarter, the company expects to see EPS in the range of $0.50 to $0.55 and revenues between $1.2 billion and $1.225 billion. The consensus estimates call for $0.68 in EPS and $1.26 billion in revenue.
Here’s what analysts had to say after the fact:
- Wedbush has a Neutral rating but lowered its price target to $28 from $33.
- Buckingham Research has a Buy rating but lowered its target to $31 from $42.
- Susquehanna Bancshares has a Neutral rating.
- Monness Crespi & Hardt has a Buy rating but lowered its target to $32 from $45.
- UBS Group downgraded the stock to Neutral from Positive.
- Wells Fargo downgraded it to Market Perform from Outperform with a $36 target.
Shares of Skechers were last seen down about 26% at $24.45, with a consensus price target of $42.10 and a 52-week trading range of $23.80 to $43.08.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
