Skechers (SKX) Loses Shape in Q3; Shares Pounded
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Price: $63.13 --0%
Rating Summary:
11 Buy, 16 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 15 | Down: 12 | New: 12
Rating Summary:
11 Buy, 16 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 15 | Down: 12 | New: 12
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Shares of Skechers USA Inc. (NYSE: SKX) are down nearly 18 percent to $19.42 in midday market movement on Thursday after the company's disappoint Q3 results, including the slowing growth of its toning shoes leading to an inventory pile-up.
The company had pushed its toning line which forces wearers to work harder while walking.
"While the demand for our product remains high and we continue to experience growth in many categories, including toning, several accounts over-booked for back to school and canceled orders, resulting in more inventory than initially planned," the company said.
The shoemaker reported Q3 EPS of $0.74, which may not compare to the analyst estimate of $1.02. Revenue for the quarter was $554.6 million, which compares to the estimate of $572.15 million.
Wedbush downgraded Skechers on Thursday following the Q3 results from Outperform to Neutral.
Wedbush analyst says, "We are downgrading SKX as we believe the uncertainty surrounding the time it will take to clear excess Shape-up inventory will be an overhang on the stock. We had initially thought that the inventory could be worked down by year end but the more likely scenario suggests excess inventory spills into 1Q11."
Capstone downgraded Skechers from Buy to Hold after the Q3 results.
The company had pushed its toning line which forces wearers to work harder while walking.
"While the demand for our product remains high and we continue to experience growth in many categories, including toning, several accounts over-booked for back to school and canceled orders, resulting in more inventory than initially planned," the company said.
The shoemaker reported Q3 EPS of $0.74, which may not compare to the analyst estimate of $1.02. Revenue for the quarter was $554.6 million, which compares to the estimate of $572.15 million.
Wedbush downgraded Skechers on Thursday following the Q3 results from Outperform to Neutral.
Wedbush analyst says, "We are downgrading SKX as we believe the uncertainty surrounding the time it will take to clear excess Shape-up inventory will be an overhang on the stock. We had initially thought that the inventory could be worked down by year end but the more likely scenario suggests excess inventory spills into 1Q11."
Capstone downgraded Skechers from Buy to Hold after the Q3 results.
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