Skechers misses on earnings, stock crashes
Skechers shares collapsed by as much as 31% in after-hours trading on Thursday after the company posted a third-quarter miss on sales.
The footwear company said it earned a record $856.2 million in net sales, but analysts had expected $876.6 million according to Bloomberg. Skechers reported diluted earnings per share of 43 cents, and $66.6 million in net earnings.
Skechers said its diluted EPS was negatively impacted by a foreign exchange loss of $13.5 million. Legal costs on personal injury lawsuits, and an intellectual property suit against Converse ate into its earnings.
It also bemoaned a "sluggish macro domestic retail sales environment", even as its net sales hit an all-time high.
"We are pleased that Skechers has grown to be the second largest athletic footwear brand in the United States, and that we are expanding into new doors and opening more Company-owned stores in key locations, including a Skechers store on Fifth Avenue in New York and our second in Times Square," said CEO Robert Greenberg in the statement.
Skechers shares are up 151% year-to-date.
Here's the price drop in after-hours trading:
