Skechers Runs on Strong Results

The stock surges above its 52-week high on a strong third-quarter earnings report.
Author:
Publish date:

Shares of

Skechers USA

(SKX) - Get Report

continued climbing higher Thursday, a day after the footwear company delivered a solid third-quarter earnings beat.

After the market close Wednesday, Skechers posted earnings of $22.2 million, or 49 cents a share, up from the $12.6 million, or 30 cents a share, it posted in the prior-year period. Analysts, on average, were expecting earnings of 40 cents a share.

The Manhattan Beach, Calif., company posted net sales of $331.1 million, up from the $272.8 million it posted in the third quarter of 2005 and handily beating the $317 million that analysts were expecting.

"Our improved sales and profitability were the result of growth across all channels of distribution -- domestic and international wholesale and retail, and our e-commerce business -- as well as growth within our Skechers lines and key fashion lines," said Chief Operating Officer David Weinberg. "We also believe our third quarter sales were positively impacted by increased advertising efforts in both the second and third quarters."

Looking forward, the company expects fourth-quarter sales to be in the range of $255 million to $265 million and earnings of between 22 cents and 27 cents a share. Analysts are looking for earnings of 17 cents a share and $248.1 million in revenue.

For the full year, Skechers expects sales to be in the range of $1.156 billion and $1.166 billion and EPS between $1.49 and $1.54. Analysts are seeking EPS of $1.35 and revenue of $1.14 billion.

Shares, which closed Wednesday at $ 27.05, were higher by $3.44, or 12.7%, at $30.49 in recent trading Thursday, well above the stocks' 52-week high of $28.35.