The 10-second takeaway
For the quarter ended June 30 (Q2), Skechers USA met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share increased.
Margins increased across the board.
Skechers USA recorded revenue of $428.2 million. The five analysts polled by S&P Capital IQ expected revenue of $427.6 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $385.6 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 $0.14. The six earnings estimates compiled by S&P Capital IQ anticipated $0.03 per share. GAAP EPS were $0.14 for Q2 against -$0.04 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 45.7%, 80 basis points better than the prior-year quarter. Operating margin was 4.0%, 440 basis points better than the prior-year quarter. Net margin was 1.7%, 220 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $521.1 million. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $1.84 billion. The average EPS estimate is $1.02.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 486 members out of 515 rating the stock outperform, and 29 members rating it underperform. Among 147 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 139 give Skechers USA a green thumbs-up, and eight 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 $26.20.
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