Skechers (SKX), the second-largest athletic footwear manufacturer in the United States reported their third-quarter earnings on Thursday October 19th 2017 after the market closed. Not only did they beat on the bottom line but they beat on the top line and they beat handily.
Shares reacted swiftly and traded on heavy volume in the after hour session. Shares which had traded down -$1.06 and closed at $24.03 in the regular session rocketed higher by +$5.57 or 23% and closed at $29.60 as of 8 p.m.
Eastern Daylight Time. Shares have traded in a 52-week range from a low of $18.81 to a high of $30. So it will be very interesting to see how the shares react at the $30 level when Cher’s open up in the morning for trading. Many eyes of Traders and investors will be watching this one closely.
The Numbers
Skechers reported earning $92.3 million dollars or $0.59 per share and this compares with earning $0.42 per share or $65 million in the prior quarter. Revenues rose to a record $1.1 billion dollars.
Much of this has been attributed to the company’s recent success in sales in their international wholesale business segments.
Analysts had been expecting only $0.43 per share for the quarter. It is these kind of earnings beats that can propel stocks into a new uptrend for many months to come.
Company Comments
David Weinberg, chief operating officer and chief financial officer had this to say to investors;
“Third quarter net sales of $1.095 billion set a new quarterly record for the Company, surpassing our previous record in the first quarter earlier this year by $22 million, and resulted in a new nine month record with sales exceeding $3 billion. The growth came across our three distribution channels—with double-digit increases in our Company-owned Skechers retail business worldwide and our international subsidiary and joint venture businesses, as well as a single-digit increase in our international distributor and domestic wholesale businesses. The strong international growth, including the continued strength in China, the resurgence of the United Kingdom and growth across all of Europe combined with our strong international retail business, resulted in international wholesale and retail representing 53 percent of our total sales in the third quarter.”
