What: Shares of shoe maker Skechers USA (NYSE:SKX) plummeted by more than 35% on Friday after its quarterly results disappointed Wall Street.

So what: Skechers shares have skyrocketed over the past year on strong sales growth, but a wide top-line miss in Q3 -- $856 million versus the consensus of $877 million -- is forcing analysts to drastically recalibrate their valuation estimates. In fact, sales in Skechers' domestic wholesale segment -- where it generates the majority of its business -- increased just 12% in Q3 versus 30% in recent quarters, suggesting that management's strategic shift into low-priced sport shoes may not be sustainable over the long run. 

Now what: While management generally agrees with Wall Street's current consensus for fourth-quarter revenue and earnings, it believes that there's significant room for upside guidance in 2016. "Our marketing and product are on target, and we are continuing to invest in our infrastructure and develop new product innovations to advance our brand and drive momentum around the globe," said CEO Robert Greenberg. "We believe that this positive momentum will continue to grow across our three main business channels in 2016. We continue to invest in our global business to further gain market share and monetize what we see as a significant long-term opportunity for Skechers." With the stock now off 45% from its 52-week highs and trading at a forward P/E in the mid-teens, now might even be an opportune time to buy into that long-term bullishness.