The 10-second takeaway
For the quarter ended June 30 (Q2), Skechers USA beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP loss per share contracted.
Margins grew across the board.
Skechers USA logged revenue of $384.0 million. The five analysts polled by S&P Capital IQ anticipated revenue of $372.7 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $435.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.04. The six earnings estimates compiled by S&P Capital IQ predicted -$0.11 per share. GAAP EPS were -$0.04 for Q2 against -$0.62 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 44.9%, 1,170 basis points better than the prior-year quarter. Operating margin was -0.4%, 1,070 basis points better than the prior-year quarter. Net margin was -0.5%, 640 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $439.0 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $1.50 billion. The average EPS estimate is $0.13.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 520 members out of 549 rating the stock outperform, and 29 members rating it underperform. Among 138 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 132 give Skechers USA a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Skechers USA is outperform, with an average price target of $19.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of SKECHERS USA. 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. The Motley Fool has a disclosure policy.