NEW YORK (TheStreet) -- Shares of Skechers (SKX) - Get Report are down 22.29% to $24.99 on heavy volume in early afternoon trading after the company reported lower than expected 2016 second-quarter earnings and revenue. 

So far today, 20.51 million shares have traded hands, compared to the average of 2.30 million. 

The company reported earnings of 48 cents per share, below estimates of 52 cents per share, and revenue of $877.8 million, missing analysts' expectations of $886.87 million. 

The Manhattan Beach, CA-based footwear company has lost about half its value since August 2015.

A slowdown in sales is the main factor behind the sudden selloff. 

"Growth is slowing more rapidly than expected," Scott Krasik, a Buckingham Research Group analyst, wrote in a report cited by CNN Money.

The shoe company's stock dropped 42% in the last year, while Nike (NKE) stock has held steady and Adidas (ADDDF) stock has almost doubled. 

Skechers doesn't have a bright future either, as it forecasts third quarter results that also miss Wall Street's estimates. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate SKECHERS U S A INC as a Buy with a ratings score of B. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: SKX

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