Jim Cramer was left scratching his head in confusion when Skechers stock plunged dramatically on Friday.
The footwear company was considered among the hottest of the hot stocks, up more than 150 percent for the year, going into the quarter. Wall Street had gotten used to Skechers knocking it out of the park each time it reported earnings, so when the numbers were viewed by many as being disappointing, the stock lost 31 percent in a single session.
"Did Skechers truly blow it, or is the market overreacting because the expectations had simply gotten too high?" the "Mad Money" host asked.
Even though Skechers did miss Wall Street's consensus revenue estimate, Cramer did not consider it a big miss. Its sales still increased 27 percent, year over year, though earnings were suboptimal with a 12-cent miss from a 55-cent basis.
Cramer attributed the culprit of the miss being the work of a strong dollar, a $5 million personal injury lawsuit settlement and increased deferred rent expenses of $3.5 billion at the company's Fifth Avenue store in New York City.
"If not for these three items, Skechers would have actually beat the numbers," Cramer said. (Tweet this)