Skechers USA Inc (NYSE:SKX) shares plummeted today as the company posted its most recent quarterly results.
The company earned 42 cents a share over the three-month period, compared to earnings of 43 cents per share in the year-ago period. The figure was below the consensus estimate of 48 cents per share.
Revenue came in at $942.4 million, which was higher than the $856.2 million Skechers posted a year ago. Analysts polled by FactSet called for revenue of $954 million.
Sales rose 50% in China over the period, proving to be a positive moment in the company’s quarter. Chile, Japan and Spain Skechers subsidiaries all revealed significant growth over the period.
Chief operating officer David Weinberg admitted that despite the company’s overseas success, its U.S. business has been struggling, causing the company to shutter its doors in a number of locations.
Other footwear companies were hurt by the news as the industry is suffering in the country. Puma SE NPV (OTCMKTS:PMMAF), Crocs, Inc. (NASDAQ:CROX) and Nike Inc (NYSE:NKE) all slipped Friday.
Skechers admitting to its struggles in selling footwear could prove to be a domino effect in the industry, revealing that the industry at large is in trouble. Keep a close eye on the coming quarters for other companies.
Several analysts have downgraded the stock since its earnings release, including Citigroup which lowered it to “Neutral.”
SKX stock plunged 17.3% Friday. Shares have dropped more than 20% year-to-date.
