The 10-second takeaway
For the quarter ended March 31 (Q1), Skechers USA beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share dropped to a loss.
Gross margins increased, operating margins dropped, net margins shrank.
Skechers USA reported revenue of $351.3 million. The six analysts polled by S&P Capital IQ anticipated a top line of $336.4 million on the same basis. GAAP reported sales were 26% lower than the prior-year quarter's $477.9 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 -$0.07. The six earnings estimates compiled by S&P Capital IQ anticipated -$0.21 per share. GAAP EPS were -$0.07 for Q1 against $0.24 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 44.3%, 370 basis points better than the prior-year quarter. Operating margin was -1.3%, 440 basis points worse than the prior-year quarter. Net margin was -1.0%, 350 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $361.4 million. On the bottom line, the average EPS estimate is -$0.14.
Next year's average estimate for revenue is $1.46 billion. The average EPS estimate is -$0.02.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 540 members out of 574 rating the stock outperform, and 34 members rating it underperform. Among 155 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 146 give Skechers USA a green thumbs-up, and nine 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 $12.08.
With hundreds of companies like Skechers USA competing for shoppers' limited dollars, strong brands matter. Household names can provide growth for even boring, mature companies -- as long as you choose the right ones. Learn about a few who have what it takes in "3 American Companies Set to Dominate the World." Click here for instant access to this free report.
- Add Skechers USA to My Watchlist.