Why Skechers' Shares Popped

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of shoe specialist Skechers (NYSE: SKX  ) ran up today, gaining as much as 12% before closing with a 4% gain.

So what: We can't really say that Skechers' results for the second quarter look good but, hey, when a company is struggling, investors need to take what they can get. For the quarter, sales slipped 11% from last year to $384 million, while the company lost $0.04 per share. While that may sound like a lousy quarter, the per-share loss was much smaller than the $0.62 loss last year, and also better than the $0.07 per share loss that analysts had expected. Revenue, likewise, topped Wall Street's views, as the average analyst estimate called for just $373 million in sales.

Now what: What do you do when you fall off a horse? If you're Skechers, you dust yourself off, and hop right back on. The company took a significant lump when its toner shoes -- like the Shape-Ups pushed by Kim Kardashian -- ended up costing the company a bunch of money and generally made it look silly. It's quickly putting that experience in its past, though, and is trying to grab new hot-at-the-moment slices of the market. Notably, it introduced the performance GOrun line -- low-profile, minimalist running shoes that have received good reviews and were a bright spot in the second quarter.

Of course, while the Shape-Ups may not be the centerpiece of Skechers anymore, shaping up its financial results still has a ways to go.

Want to keep up to date on Skechers? Add it to your watchlist.

Motley Fool newsletter services have recommended buying shares of Skechers. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Fool contributor Matt Koppenheffer does not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook. The Fool’s disclosure policy prefers dividends over a sharp stick in the eye.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1960741, ~/Articles/ArticleHandler.aspx, 10/28/2016 10:27:40 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,174.03 4.35 0.02%
S&P 500 2,131.70 -1.34 -0.06%
NASD 5,207.13 -8.84 -0.17%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/28/2016 10:12 AM
SKX $20.75 Up +0.42 +2.07%
Skechers CAPS Rating: *****