Shares of Skechers rose 5.67% to $24.60 in after-hours trading on Thursday after the athletic footwear maker reported fourth-quarter revenue and comparable-store sales that topped analysts' expectations.
Revenue rose 5.8% to $764.3 million year-over-year and surpassed analysts' forecasts of $723.7 million. Comparable-store sales increased 3.6%, while analysts had expected flat results.
The strong quarterly growth was primarily due to a 17.1% increase in the company's international wholesale business, led by China with a jump of 48.5%, Skechers said.
But earnings of 4 cents a share missed analysts' forecasts of 10 cents a share.
Skechers' gross margins were hurt by foreign currency transaction losses during the period. Its U.K. business was also "significantly impacted" by currency headwinds, with wholesale sales flat in local currency, but down 17.9% in U.S. dollars.
For the first quarter, the company sees earnings per share between 50 cents and 55 cents on revenue of $1.05 billion to $1.08 billion. Analysts surveyed by FactSet were looking for earnings of 62 cents a share on revenue of $1.04 billion for the current period.
The company expects flat to slightly positive sales in its domestic wholesale business, and increases in its international business and company-owned retail stores in the first quarter.
To be sure, after dismal holiday sales results from Macy's (M - Get Report) , J.C. Penney (KSS - Get Report) , Kohl's (KSS - Get Report) and Sears (SHLD) Skechers results serve as a short-term breath of fresh air.