SKECHERS USA Issues Weak Q2 Guidance; Shares Slip

(RTTNews) - SKECHERS USA, Inc. (SKX) announced, for the second quarter of 2019, the company expects sales in the range of $1.200 billion to $1.225 billion, and earnings per share of $0.30 to $0.35. Analysts polled by Thomson Reuters expect the company to report profit per share of $0.38 on revenue of $1.23 billion. Analysts' estimates typically exclude special items.

For the first-quarter, the company reported net earnings of $108.8 million and earnings per share of $0.71 compared to $117.7 million or $0.75 per share, prior year. In the first quarter, effective income tax rate was 19.5 percent, reflecting the negative impact of several discrete items, totaling $0.02 per share. On average, 10 analysts polled by Thomson Reuters expected the company to report profit per share of $0.72 for the quarter. Earnings from operations was $165.9 million, an increase of 11.5 percent.

First-quarter sales grew 2.1 percent, or 5.2 percent on a constant currency basis, to $1.28 billion as a result of a 9.3 percent increase in the international business, partially offset by a 6.3 percent decrease in domestic business. On a constant currency basis, international business increased 15.0 percent. Analysts expected revenue of $1.3 billion for the quarter.

Shares of SKECHERS USA were down more than 12% in pre-market trade on Thursday.