Skechers shares jump after profit, sales blow past estimates
Skechers USA Inc. shares rallied about 10% in after-hours trade Wednesday, after the casual footwear company blew past second-quarter profit and sales estimates. The company said it had net profit of $79.8 million, or $1.55, in the quarter, up from $34.8 million, or 68 cents a share, in the year-earlier period. Sales climbed to $800.5 million from $587.1 million. The FactSet consensus was for EPS of $1.01 and sales of $736 million. "Driving this growth were double-digit increases in our three main business channels: domestic wholesale with an average price per pair increase of 9.0 percent; international wholesale, which includes 665 third-party-owned Skechers retail stores; and Company-owned Skechers domestic and international retail stores with a total comp store sales increase of 12.9 percent for the quarter," Chief Operating Officer and Chief Financial Officer David Weinberg said in a statement. The company is 'comfortable' with consensus estimates for the second half, he said. Shares have gained 132% in the year so far, while the s&P 500 is up 2.4%.
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