Skechers USA Inc. (SKX) Soaring on Quarterly Sales Forecast


 
 
01:25 10/19/2018

Months after gapping from $33.50 to $24.50, Skechers SKX  is showing big signs of life. In fact, the stock is up 14% on the day to $29.75.

All thanks to its quarterly sales forecast.

While it may have provided a mixed third quarter report, Q4 guidance was strong. In fact, the company says sales this quarter will be at least $1.1 billion, says the company. EPS is expected to fall in a range of $0.20 and $0.25. Analysts were expecting revenue and EPS of $1.08 billion and $0.18, respectively.

In its third quarter, SKX posted revenue of $1.176 billion – up 7.5% year over year. However, that did fall short of analyst expectations of $40 million. Much of that can be blamed on currency headwinds, which reduced revenue growth by a percentage point.

Revenue was driven by an 11.8% increase in international wholesale revenue, and a 10.6% jump in global retail sales. EPS for the quarter was 58 cents, which was a penny short from last year. However, it was still six cents better than expectations. Gross margins were up 0.4 percentage points, which offset a jump in operating expenses.

Technically, after refilling a July 2018 bearish gap, we’d like to see a gap frill at $42. We believe it’s possible if the company can turn in even better numbers going forward.






This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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