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What: Shares of Skechers USA Inc. (NYSE:SKX) were stepping up to the next level today, gaining as much as 13% and finishing up 5% after crushing earnings estimates in its first-quarter report.
So what: The footwear-maker turned in a per-share profit of $0.61, well ahead of expectations at $0.33, and the top line impressed as well, with revenue jumping 21% to $546.5 million against the consensus at $507 million. CEO Robert Greenberg credited the strong performance on "the success of multiple product categories" as well as increased acceptance of the brand internationally. Operating margin jumped 3.3% a year ago to 8.8% as SG&A expenses increased more slowly than sales, in part because some advertising spending was shifted to the second quarter as Easter fell later in the calendar this year.
Now what: The momentum continued into the second quarter, according to Greenberg, who said, "April has started off very strong in terms of order rates, revenues and backlogs, all which have accelerated since year end," and he believed that trend would continue throughout the year. Still, he stood by the current analyst estimates for the quarter, which call for 15.6% sales growth. That statement may have weighed on the stock during the trading session, but I wouldn't be surprised if Skechers blows past estimates again next quarter as Greenberg may be playing it conservative.
Jeremy Bowman and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.