Skechers USA (SKX - Get Report) is projected to post lower fourth-quarter earnings year over year following Thursday's market close.

The stock fell more than 17% after results missed expectations during the third quarter and tumbled over 22% after disappointing results for the second quarter.

Analysts surveyed by FactSet are looking for fourth-quarter earnings of 10 cents per share on revenue of $723.7 million. During the same quarter last year, the footwear maker earned 19 cents per diluted share on revenue of $722.7 million.

Same-store sales are forecast to be flat during the period vs. growth of 9.1% a year ago, according to FactSet. 

Wells Fargo cut its estimates on Skechers ahead of the report and said this earnings season has seen a combination of soft traffic trends across the industry and conservative inventory management by retailers.

"This adverse operating environment has resulted in numerous top-line misses for wholesalers (Under Armour (UA - Get Report) /Steven Madden (SHOO - Get Report) /Deckers Outdoor (DECK) , to name a few), and we believe SKX may have had a challenging quarter as well (our sales estimate is now $10 million below consensus)," the analysts said.

But the firm has an "outperform" rating on Skechers as its view has been predicated on a top-line recovery beginning in the second quarter with new and improved product flows. Sentiment is already "pretty low here" and weak U.S. wholesale trends should not be a surprise any longer.

"So we still see a favorable setup as the year progresses (even if 4Q sales are light and the tone on 2017 is cautious)," the analysts said.

Wells Fargo now sees fiscal 2016 earnings of $1.64 per share vs. its prior view of $1.66 per share and fiscal 2017 earnings of $1.75 per share compared to its previous estimate of $1.84 per share.

Morgan Stanley analysts said the market is optimistic new products can drive U.S. wholesale revenue growth acceleration. "However, it is far too early to expect new products to impact results in our view. Plus, store checks indicate lackluster 4Q trends and we see little EPS upside," the analysts added.

Skechers remains a brand that is undergoing a fashion transition, Morgan Stanley noted. But it is too early to tell how consumers are responding to new products, such as You by Skechers and Skechers Street.

"We believe SKX is a stock which moves sideways until the story further develops. While we don't believe the core business performed much differently than the market expected, the risk is to the downside in our view, mainly due to ongoing US macro weakness and competitive threats from higherpriced brands like Under Armour," the analysts said.

Shares of Skechers were down nearly 1% to $22.41 in mid-afternoon trading today. The stock has fallen more than 16% in the past year.