2023-04-27 16:31:12 ET
Skechers USA ( NYSE: SKX ) shares slumped despite posting a beat on Q1 earnings and raising full-year forecasts.
For the first quarter, the Los Angeles-based footwear manufacturer notched $1.02 in earnings per share, $0.41 above expectations. Meanwhile, a 9.9% rise in revenue to $2B came in $130 above consensus estimates. The company also noted a 360 basis point expansion in gross margins while inventory levels contracted sharply.
“Our record sales, expanded gross margins of 48.9% and meaningfully improved inventory levels are an indication of the strength of our comfort technology products and impactful marketing worldwide,” COO David Weinberg said. “We continue to build efficiencies and expand our distribution capabilities around the globe to meet the demand for the comfort, innovation, style, and quality that Skechers consumers want. With plans to reach $10B in annual sales by 2026, we couldn’t be more positive about the many meaningful growth opportunities we see ahead.”
For the full year, management hiked sales forecasts to between $7.9B and $8.1B, up from a prior guide of $7.75B to $8B and in-line with the consensus revenue estimate of $8B. An adjusted EPS forecast of between $3.00 and $3.20 also reflected an increase from the prior forecast of between $2.80 and $3.00. The consensus EPS estimate is $2.99.
However, much the same as Crocs warned on Thursday morning, the second quarter is expected to be difficult. Management projects sales between $1.85B and $1.90B and EPS between $0.40 and $0.50. The consensus revenue and EPS forecasts stand at $1.98B and $0.74, respectively.
Shares of Skechers ( SKX ) ran about 2% lower in after hours trading before rebounding to a more modest decline.
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Skechers stock slides on soft Q2 guide