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Auriga Reiterates a 'Hold' on Skechers USA (SKX); Cutting Q4 Estimates on Expected Weakness

February 13, 2012 10:49 AM EST
SKX Hot Sheet
Rating Summary:
    1 Buy, 5 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 19 | Down: 16 | New: 82
Auriga reiterates a 'Hold' on Skechers USA (NYSE: SKX) price target of $12.00.

Auriga analyst says, "We are adjusting our Q4 EPS estimate to ($0.21) from ($0.08) on what we believe was weaker than expected sales in the quarter. The new GOrun fitness shoe introduction occurred during Q4 however our checks pointed to muted sell through in the domestic channel. We believe sales will likely decline in 2012 and SG&A cuts could be used to generate EBIT margins between 1-2% for the year. We are monitoring SKX footwear offerings and could become more constructive on the name with new product offerings that appear to generate consumer interest."

For an analyst ratings summary and ratings history on Skechers USA click here. For more ratings news on Skechers USA click here.

Shares of Skechers USA closed at $13.98 yesterday, with a 52 week range of $11.21-$23.25.


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