Retail

Skechers drops more than 25% after earnings miss

Key Points
  • Earnings per share of 29 cents fell well short of the 41 cents a share expected by analysts for the second quarter.
  • Sales of $1.13 billion were up 10.6 percent from last year, but profit fell 23.9 percent, to $45 million.
  • The company expects third-quarter EPS of 50 cents to 55 cents a share, which is short of the 67 cents expected by analysts.
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Skechers sinks 25% following disappointing Q2 earnings

Shares of footwear maker Skechers tumbled more than 25 percent in aftermarket trading on Thursday after the company reported disappointing quarterly results and forecast a weak outlook for the third quarter.

The company reported earnings per share of 29 cents, well short of the 41 cents expected by analysts. Revenue of $1.13 billion was up 10.6 percent from the same period last year, in line with expectations. Profit of $45 million was down 23.9 percent from last year.

Same-store sales in the U.S. rose 2.2 percent.

The company said it expects to see sales in the range of $1.2 billion to $1.225 billion in the third quarter and EPS of 50 cents to 55 cents a share. But estimates by analysts as tracked by FactSet call for third quarter EPS of 67 cents and sales of $1.26 billion.

Correction: Skechers had second-quarter revenue of $1.13 billion. An earlier version misstated the figure.