Updated from 10:04 a.m. EST
Shares of shoemaker
closed down 41.7% after the company said its fourth-quarter earnings would be lower than expected, due to consumers' measured spending habits and weakness in the economy.
The Manhattan Beach, Calif., company said it expects to post a net loss of 25 cents to 35 cents a share. Wall Street analysts, on average, were expecting the company to earn 5 cents a share, according to Thomson Financial/First Call. Skechers also pared its revenue estimate to a range of $160 million to $170 from previous estimates of $195 million to $205 million. Analysts were projecting fourth-quarter revenue to come in at $197.3 million.
"The weak economic environment has been characterized by soft consumer spending, price concessions and fear of inventory buildup at retail," the company said in a press release. "Additionally, our international distributor sales were lower than anticipated as a result of unstable economic and political conditions in certain countries."
Looking forward, Skechers said it anticipates 2002 sales to be in the range of $922.7 million to $932.7 million and earnings of $1.04 to $1.14 a share. Analysts' consensus estimate called for revenue of $960 million and a net profit of $1.45 a share.
The shares closed down $5.03 to $7.02 on the
New York Stock Exchange. Heading into Monday's session, the stock was down nearly 50% from its 52-week high of $24.40, established in April.