Skechers USA (SKX) Shares Plummet on Earnings Miss, In-Line Revenue

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Skechers USA (NYSE:SKX) reported its latest quarterly earnings results after the bell on Thursday, posting lower-than-expected earnings and in-line revenue that sent shares sinking late in the day.

Skechers USA (SKX)The apparel maker brought in fiscal second-quarter earnings of 29 cents per share to reach the midpoint of its 2018, missing the Wall Street consensus estimate of 41 cents per share by 12 cents. On the revenue front, Skechers raked in sales of $1.13 billion, which was in line with the Wall Street consensus estimate of $1.13 billion.

Revenue was up about 10.6% compared to the year-ago quarter for Skechers, which was mostly propelled by the company’s 24.9% increase in its international wholesale business, as well as a 12.8% gain in its global retail business. Comparable same-store sales in company-owned stores were up by 4.5% worldwide for its second quarter when compared to its second quarter of fiscal 2017.

This figure included a 2.2% comparable same-store sales increase in the U.S., as well as an 11.3% surge on an international basis. However, the company’s growth was hit hard by a 7% decline in its domestic wholesale business, as well as a 6.1% dip in its international distributor business.

Skechers’ net earnings came in at $45.3 million for the period, while its diluted earnings tallied up to 29 cents per share.

SKX stock gained 1.9% on Thursday during regular trading hours ahead of the company’s quarterly earnings results, which sent shares plummeting more than 22.8% after the bell.


Article printed from InvestorPlace Media, https://investorplace.com/2018/07/skechers-usa-skx/.

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