The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Skechers USA whiffed on revenues and missed expectations on earnings per share.
Compared with the prior-year quarter, revenue shrank significantly and GAAP earnings per share shrank to a loss.
Margins dropped across the board.
Skechers USA reported revenue of $283.2 million. The five analysts polled by S&P Capital IQ wanted to see revenue of $321.9 million on the same basis. GAAP reported sales were 37% lower than the prior-year quarter's $456.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.58. The five earnings estimates compiled by S&P Capital IQ predicted -$0.22 per share on the same basis. GAAP EPS were -$1.18 for Q4 versus $0.07 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 40.4%, 30 basis points worse than the prior-year quarter. Operating margin was -20.4%, 2,070 basis points worse than the prior-year quarter. Net margin was -20.1%, 2,080 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $359.8 million. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $1.50 billion. The average EPS estimate is $0.16.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 539 members out of 568 rating the stock outperform, and 31 members rating it underperform. Among 176 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 169 give Skechers USA a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Skechers USA is hold, with an average price target of $14.48.
Over the decades, small-cap stocks like Skechers USA have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Get instant access to this free report.
- Add Skechers USA to My Watchlist.