The 10-second takeaway
For the quarter ended March 31 (Q1), Skechers USA beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew. GAAP earnings per share increased.
Gross margins contracted, operating margins increased, net margins grew.
Skechers USA reported revenue of $451.6 million. The four analysts polled by S&P Capital IQ expected revenue of $443.7 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $352.4 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 $0.21. The six earnings estimates compiled by S&P Capital IQ averaged $0.17 per share. Non-GAAP EPS were $0.21 for Q1 compared to -$0.07 per share for the prior-year quarter. GAAP EPS were $0.13 for Q1 against -$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 42.9%, 160 basis points worse than the prior-year quarter. Operating margin was 3.4%, 460 basis points better than the prior-year quarter. Net margin was 1.5%, 250 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $423.3 million. On the bottom line, the average EPS estimate is $0.00.
Next year's average estimate for revenue is $1.83 billion. The average EPS estimate is $0.98.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 491 members out of 519 rating the stock outperform, and 28 members rating it underperform. Among 139 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 132 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 outperform, with an average price target of $24.50.
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