Skechers USA Earnings: Here’s Why Investors are Happy Now

Skechers USA Inc. (NYSE:SKX) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 8.58%.

Skechers USA Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 63.64% to $0.08 in the quarter versus EPS of $-0.39 in the year-earlier quarter.

Revenue: Rose 38.14% to $395.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Skechers USA Inc. reported adjusted EPS income of $0.08 per share. By that measure, the company beat the mean analyst estimate of $-0.11. It beat the average revenue estimate of $337.62 million.

Quoting Management: “For the 2012 fourth quarter, sales increased more than 39 percent over the same period in 2011 as we saw improvements across all of our revenue channels, including a 72 percent increase in our domestic wholesale business,” began David Weinberg, chief operating officer and chief financial officer. “This strong domestic wholesale growth plus low double-digit positive comp store sales in our company-owned SKECHERS retail stores and a 30 percent increase in our international business are evidence of the broad acceptance of our new product offerings. With each of our new and established lines driving sales, domestically, both our men’s and kids’ divisions experienced double-digit growth, while our women’s division saw triple-digit growth.”

Key Stats (on next page)…

Revenue decreased 8.25% from $431.19 million in the previous quarter. EPS decreased 63.64% from $0.22 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.23 and has not changed. For the current year, the average estimate has moved up from a loss of $0.01 to a loss of $0 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)