Skechers USA Earnings: Here’s Why Shares are Up 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 1%.

Skechers USA Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.14 in the quarter versus EPS of $-0.04 in the year-earlier quarter.

Revenue: Rose 25.05% to $482.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Skechers USA Inc. reported adjusted EPS income of $0.14 per share. By that measure, the company beat the mean analyst estimate of $0.03. It beat the average revenue estimate of $427.62 million.

Quoting Management: Robert Greenberg, SKECHERS chief executive officer, commented: “In June, we hosted our 21st annual Global Sales Conference for our domestic, international and retail teams to review our products, and we have spent much of this month in key account meetings at our corporate offices doing the same. The positive feedback we have received in these meetings is unlike any we have previously experienced. We believe this is due to a more diversified product balance. With strong offerings throughout our footwear lines, we now have many key product successes, including Skechers Relaxed Fit, which crosses into our lifestyle athletic and casual divisions. This increased product balance has allowed us to redefine many of our lines and grow our divisions through new offerings, including the year-round extension of our charitable line BOBS, which reached the five million pair donation mark in June, and the expansion of our award-winning SKECHERS Performance Division, which has grown into a solid business. We continue to support our brands with numerous men’s, women’s and kids television campaigns, and for Back to School, many of the same commercials will be shown around the world to support our global business. We are now seeing the impact of our key product initiatives and marketing support taking hold around the world. Based on the reaction at our recent key account meetings and current performance in the market, we believe the momentum we are experiencing will continue through this year and into next year.”

Key Stats (on next page)…

Revenue increased 6.35% from $453.39 million in the previous quarter. EPS decreased 33.33% from $0.21 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.46 to a profit $0.61. For the current year, the average estimate has moved up from a profit of $0.97 to a profit of $1.04 over the last ninety days.

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