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.
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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. Motley Fool newsletter services have recommended buying 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.