Skechers Tanks on Weak Guidance and Earnings Miss
Shares of shoemaker Skechers USA Inc. (SKX) - Get Skechers U.S.A. Inc. Report fell more than 25% to $24.52 in morning trading on Friday, July 20, after earnings came in below forecasts and guidance was below estimates.
The company reported a second-quarter sales record of $1.134 billion, a 10.6% increase over the same period last year, yielding earnings of $561 million, or 29 cents a share. However, the company earned 38 cents a share in the year-ago period
On a non-GAAP basis, Skechers earned 36 cents per share while analysts were expecting it to report EPS of 41 cents.
The company reported double-digit growth in its largest international markets, but its operating margin fell to 7.2% from 8.4% year over year.
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More importantly, Skechers' forward-looking guidance failed to meet Wall Street's expectations. It sees revenue between $1.2 billion and $1.225 billion in the third quarter on EPS between 50 cents and 55 cents. Analysts are expecting revenue of $1.26 billion yielding earnings of 68 cents a share.
Skechers' struggles offer a stark contrast to the strong quarter Nike Inc. (NKE) - Get Nike Inc. Report reported last month. Nike shares hit an all-time high following its earnings release.
