Shares of Skechers USA Inc. fell 10.8% in extended trading Thursday after the comfort-footwear maker reported weaker-than-expected fourth-quarter sales amid a decline in its wholesale business.
The company reported revenue of $1.96 billion, an increase of 4.4% on the prior year’s quarter. Net income was $87.2 million, or 56 cents a share, compared with $75.5 million, or 48 cents a share, in the prior year’s quarter. On an adjusted basis, Skechers
SKX,
earned 48 cents a share. Analysts surveyed by FactSet expected adjusted earnings of 55 cents a share and sales of $2.03 billion.
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In a statement, Skechers Chief Operating Officer David Weinberg said that the company’s wholesale sales fell 8%. “Several retailers continued to conservatively manage their inventory levels,” he said. “However, we are optimistic that this behavior is changing based upon early reads from January shipments and positive order trends for the first half of the year.”
On a regional basis, Skechers’ Asia Pacific revenue grew 15%, led by double-digit growth in China, while the Americas grew 3%, and Europe, Middle East and Africa decreased 7%.
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For the first quarter, Skechers expects sales between $2.175 billion and $2.225 billion and earnings per share between $1.05 and $1.10. Analysts surveyed by FactSet expect sales of $2.192 billion and earnings of $1.20 a share. For the full year, Skechers forecast sales between $8.6 billion and $8.8 billion and earnings per share between $3.65 and $3.85. Analysts surveyed by FactSet are looking for sales of $8.918 billion and earnings of $4.18 a share.
Skechers shares have risen 29.3% in the past 52 weeks, compared with the S&P 500 index’s
SPX
gain of 17.4%.
This story originally appeared on Marketwatch
