In late October I complained that casual footwear company Skechers' (NYSE:SKX) third-quarter communications with investors might have been improved with a timely intraquarter update to prepare them for the shock of a big downbeat earnings surprise caused in large part by overseas taxes. Looks like things are improving.
Last night the Manhattan Beach, California-based shoe and boot designer, marketer, and retailer turned in mixed fourth-quarter and full-year financial results, and the numbers delivered on promises made in management's Feb. 1 pre-announcement.
The latter release was where the company said it expected to turn in stronger-than-expected revenue growth and EPS ahead of the market's $0.06 consensus loss estimate for the quarter that closed Dec. 31. Last night Skechers did just that, revealing fourth-quarter sales that jumped nearly 18% year-over-year to $206.5 million.
EPS, meanwhile, came in a nickel above breakeven as the company actually reported a tax benefit, rather than expense, for the quarter. (Without that benefit, it should be noted, Skechers would have finished the quarter in the red.)
Now that's more like it! Skechers is a company that's doing an awful lot of things right, including managing costs, growing internationally, and improving the balance sheet. Flubbing basic, avoidable investor communications issues by allowing what amounted to a big earnings disappointment just didn't seem to fit.
Skechers has learned its lesson: This week's release includes forward-looking information about the company's tax-rate expectations for the coming year, which give investors not only a number to apply to their models but also a measuring stick by which to evaluate management's ability to project such things.
Fool contributor Dave Marino-Nachison doesn't own shares of Skechers.
