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Skechers (SKX) Stock Crumbles on Earnings, Misses Sales Estimates

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Founded in 1992, Manhattan Beach, Callifornia-based Skechers U.S.A. Inc ((SKX - Free Report) is an American footwear company that designs and markets various types of footwear for men, women, and children. The company sells its products through department stores and specialty retailers.

Currently, Skechers has a Zacks Rank #1 (Strong Buy) and it had been a very strong performer, but that could change following its fiscal third quarter 2015 earnings report. We have highlighted some of the key details from the just-released announcement below.

Earnings: Skechers beat the Zacks Consensus Estimate. Adjusted EPS came in at $0.58 per share, beating the Zacks Consensus Estimate of $0.54 per share (these numbers are before non-recurring items and do not include the nearly 15 cent per share charge that the company experienced due to legal expenses and a settlement).

Revenue: Revenues of $856.2 million missed the Zacks Consensus Estimate of $868 million.

Key Note: “With product and marketing initiatives that continue to resonate with our consumers worldwide, we achieved a new quarterly sales record of $856.2 million in the third quarter of 2015. These results followed record first and second quarter revenues, resulting in a 34.1 percent net sales increase for the first nine months of 2015 as compared to the same period last year,” said David Weinberg, chief operating officer and chief financial officer.

Stock Price: SKX was down $12.84 or 27.80%, to $33.35 as of 5:56 PM ET in after hours trading shortly after its earnings report was released. Heading into the report, shares of SKX were up close to 150% YTD so expectations were definitely running high and the sales miss clearly spooked some investors. 

Check back later for our full write up on this SKX earnings report later!

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