Skechers Shares Waver After Results Beat Estimate

Skechers USA shares wavered on Friday, after the footwear company reported a narrower-than-expected net loss.
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Skechers USA  (SKX) - Get Report shares wavered Friday after the footwear retailer swung to a loss but reported a stronger-than-expected second quarter.

The Manhattan Beach, Calif., company reported a net loss of $68.1 million, or 44 cents a share, compared with a profit of $75.2 million, or 49 cents, in the year-earlier quarter. 

Revenue totaled $729.5 million, down 42% from $1.26 billion in the year-ago quarter. 

Analysts surveyed by FactSet projected a GAAP loss of 74 cents a share, or an adjusted loss of 67 cents, on revenue of $653.3 million.

Skechers, like so many other retail businesses, has suffered severely from the coronavirus pandemic, which has shut stores and kept would-be buyers at home.

“The impact of Covid-19 to Skechers’ business was significant in the second quarter, as we saw much of the world outside Asia shutter nearly all businesses,” Skechers Chief Operating Officer David Weinberg said in a statement.

But he added a positive note.

“We remain optimistic about the early signs of recovery we witnessed during the quarter, including a return to growth in China, consistent improvement each month in some markets outside of China, and record shattering growth of over 400% in our company-owned e-commerce business,” Weinberg said.

He cited sales improvement in Australia, Germany, South Korea and Taiwan too.

More than 90% of Skechers’s stores have reopened. As of June 30, the company’s cash, cash equivalents and investments totaled $1.56 billion, up $524.5 million from Dec. 31.

Skechers shares at last check Friday traded off 0.2% at $31.02 after trading as high as $34.01, up 9.5%. The stock has dropped 26% year to date.