Skechers USA Reports Q4 Beat, Shares Down 9% on Weak Guidance
Skechers USA (NYSE:SKX) shares fell more than 9% on Friday despite the company reporting its Q4 results, with EPS of $0.48 coming in better than the Street estimate of $0.36. Revenue increased 13.5% year-over-year to $1.88 billion, beating the Street estimate of $1.77 billion. Wholesale revenue increased by 15.7% and Direct-to-Consumer revenue increased by 10.8%.
Logistical challenges once again led to a miss in operating income, which came in at $87 million, compared to the Street estimate of $96 million. Management expects the company to incur some additional logistics costs over the next two quarters but to a much lesser extent than in fiscal 2022 (approximately $90 million). For Q1/23, the company expects revenue in the range of $1.80-$1.85 billion and diluted EPS in the range of $0.55-$0.60, significantly worse than the Street estimate of $0.86.
For fiscal 2023, the company expects revenue in the range of $7.75-$8.0 billion and diluted EPS of $2.80-$3.00.
| Symbol | Price | %chg |
|---|---|---|
| NKE.BA | 6260 | 0.8 |
| 7936.T | 3570 | 0.78 |
| 241590.KS | 7490 | -1.34 |
| 194370.KS | 11600 | -2.16 |
Skechers Plunges 6% as Revenue Miss and Withdrawn Outlook Spark Investor Caution
Skechers (NYSE:SKX) shares dropped 6% in premarket trading after the footwear company reported first-quarter revenue below expectations and pulled its full-year guidance, citing macroeconomic uncertainty tied to shifting global trade dynamics.
The company delivered earnings of $1.17 per share, matching analyst forecasts. However, revenue came in slightly short at $2.41 billion versus the $2.43 billion expected by Wall Street.
More concerning to investors was Skechers’ decision to withdraw the annual outlook it provided in February, saying it will not issue financial guidance at this time due to unpredictable global economic conditions. The move raised red flags about visibility into future performance, especially given rising trade tensions and shifting consumer trends.
While the company noted that sales trends remain generally solid across most international markets, challenges persist in the U.S. amid weakened consumer sentiment and in China where economic uncertainty continues to weigh on demand.
According to analysts at Stifel, Skechers is prioritizing margin protection and brand investment through cost-sharing with vendors, pricing actions, and strategic sourcing. However, these efforts are expected to pressure margins in the near term.
The results and cautious stance reflect the delicate balancing act facing global retailers—navigating rising costs, uneven demand, and geopolitical headwinds while trying to protect long-term brand strength.
Skechers Plunges 6% as Revenue Miss and Withdrawn Outlook Spark Investor Caution
Skechers (NYSE:SKX) shares dropped 6% in premarket trading after the footwear company reported first-quarter revenue below expectations and pulled its full-year guidance, citing macroeconomic uncertainty tied to shifting global trade dynamics.
The company delivered earnings of $1.17 per share, matching analyst forecasts. However, revenue came in slightly short at $2.41 billion versus the $2.43 billion expected by Wall Street.
More concerning to investors was Skechers’ decision to withdraw the annual outlook it provided in February, saying it will not issue financial guidance at this time due to unpredictable global economic conditions. The move raised red flags about visibility into future performance, especially given rising trade tensions and shifting consumer trends.
While the company noted that sales trends remain generally solid across most international markets, challenges persist in the U.S. amid weakened consumer sentiment and in China where economic uncertainty continues to weigh on demand.
According to analysts at Stifel, Skechers is prioritizing margin protection and brand investment through cost-sharing with vendors, pricing actions, and strategic sourcing. However, these efforts are expected to pressure margins in the near term.
The results and cautious stance reflect the delicate balancing act facing global retailers—navigating rising costs, uneven demand, and geopolitical headwinds while trying to protect long-term brand strength.
Tariff Uncertainty Clouds Skechers Outlook, Says UBS
UBS maintained its Buy rating on Skechers USA (NYSE:SKX) but slightly trimmed its price target to $64 from $65, as the company braces for potential headwinds tied to the latest U.S. tariff measures.
While initial Q1 fundamentals appear strong based on UBS channel checks, analysts caution that full-year earnings guidance may face a meaningful revision. The firm expects Skechers to potentially cut its 2025 EPS outlook by $0.50 to $1.00, though the final adjustment could vary depending on how management navigates the tariff impact.
Investor expectations remain murky ahead of earnings, and UBS highlights a historically volatile stock reaction—averaging a 10% swing—around earnings events. With guidance changes likely and market uncertainty high, the risk/reward appears evenly balanced in the near term.
Tariff Uncertainty Clouds Skechers Outlook, Says UBS
UBS maintained its Buy rating on Skechers USA (NYSE:SKX) but slightly trimmed its price target to $64 from $65, as the company braces for potential headwinds tied to the latest U.S. tariff measures.
While initial Q1 fundamentals appear strong based on UBS channel checks, analysts caution that full-year earnings guidance may face a meaningful revision. The firm expects Skechers to potentially cut its 2025 EPS outlook by $0.50 to $1.00, though the final adjustment could vary depending on how management navigates the tariff impact.
Investor expectations remain murky ahead of earnings, and UBS highlights a historically volatile stock reaction—averaging a 10% swing—around earnings events. With guidance changes likely and market uncertainty high, the risk/reward appears evenly balanced in the near term.
Skechers Tumbles 10% as Weak 2025 Outlook Overshadows Record Sales
Skechers U.S.A. (NYSE:SKX) saw its shares plummet over 10% intra-day today after reporting fourth-quarter earnings that fell short of analyst expectations and issuing a weaker-than-expected outlook for 2025. Despite record annual sales, investors reacted negatively to the company’s cautious guidance.
For Q4, Skechers posted adjusted earnings per share of $0.65, missing the consensus estimate of $0.74. Revenue reached $2.21 billion, slightly below analysts’ expectations of $2.22 billion, though it marked a solid 12.8% year-over-year increase.
Looking ahead, Skechers expects 2025 earnings per share between $4.30 and $4.50, falling well short of Wall Street’s $4.85 projection. Full-year revenue is forecasted at $9.7 billion to $9.8 billion, also missing the $9.87 billion consensus.
Despite the disappointing guidance, the company highlighted its strong 2024 performance, with full-year revenue hitting a record $8.97 billion, or $9.04 billion on a constant currency basis. Wholesale sales surged 17.5% in Q4 to $1.13 billion, while direct-to-consumer revenue climbed 8.4% to $1.08 billion. Gross margin saw a modest improvement to 53.3% from 53.1% a year earlier.
While Skechers continues to benefit from global consumer demand and effective marketing strategies, its tempered 2025 outlook suggests potential challenges ahead, weighing heavily on investor sentiment.
Skechers Tumbles 10% as Weak 2025 Outlook Overshadows Record Sales
Skechers U.S.A. (NYSE:SKX) saw its shares plummet over 10% intra-day today after reporting fourth-quarter earnings that fell short of analyst expectations and issuing a weaker-than-expected outlook for 2025. Despite record annual sales, investors reacted negatively to the company’s cautious guidance.
For Q4, Skechers posted adjusted earnings per share of $0.65, missing the consensus estimate of $0.74. Revenue reached $2.21 billion, slightly below analysts’ expectations of $2.22 billion, though it marked a solid 12.8% year-over-year increase.
Looking ahead, Skechers expects 2025 earnings per share between $4.30 and $4.50, falling well short of Wall Street’s $4.85 projection. Full-year revenue is forecasted at $9.7 billion to $9.8 billion, also missing the $9.87 billion consensus.
Despite the disappointing guidance, the company highlighted its strong 2024 performance, with full-year revenue hitting a record $8.97 billion, or $9.04 billion on a constant currency basis. Wholesale sales surged 17.5% in Q4 to $1.13 billion, while direct-to-consumer revenue climbed 8.4% to $1.08 billion. Gross margin saw a modest improvement to 53.3% from 53.1% a year earlier.
While Skechers continues to benefit from global consumer demand and effective marketing strategies, its tempered 2025 outlook suggests potential challenges ahead, weighing heavily on investor sentiment.
Skechers Shares Rise 5% on Strong Q3 Earnings and Upgraded Outlook
Skechers USA (NYSE:SKX) saw its shares soar 5% intra-day today after posting third-quarter earnings that surpassed Wall Street expectations and raising its full-year outlook. The footwear company’s impressive performance highlighted strong demand across global markets.
For the third quarter, Skechers reported adjusted earnings per share of $1.20, exceeding Wall Street estimates of $1.16. Revenue reached a record $2.35 billion, up 15.9% year-over-year and topping the Street forecast of $2.31 billion. This growth was fueled by a 20.6% increase in wholesale sales and a 9.6% rise in direct-to-consumer sales.
Looking ahead, Skechers raised its full-year 2024 revenue forecast to a range of $8.925 billion to $8.975 billion, exceeding its previous guidance and the Street consensus of $8.93 billion. The company also lifted its earnings per share projection to $4.20-$4.25, surpassing Wall Street’s expectation of $4.17.
