Skechers Has Smaller-Than-Expected Loss

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Casual shoemaker Skechers USA Inc. reported a smaller-than-expected loss in the second quarter, saying it had benefitted from better inventory management and tighter cost controls. The company said it expects to be profitable in the second half of the year.

After the markets closed Wednesday, the Manhattan Beach company reported a net loss of $5.9 million (-3 cents a share), compared with a net profit of $14.6 million (31 cents) a year ago. Net sales fell 16 percent to $299 million. In response, company said it was able to cut operating expenses by 5 percent.

Analysts surveyed by Reuters Estimates on average expected a loss of 18 cents a share on revenue of more than $305 million.

“Our second quarter 2009 sales are in line with our recent expectations in light of today’s soft retail environment,” said Chief Operating Officer David Weinberg in a statement. “Like many others, we too have been adversely affected by the economic climate, and have adjusted our inventory levels and expenses to meet the lower demand.”

Before the announcement, Skechers shares closed down 8 cents, or less than 1 percent, to $11.82 on the New York Stock Exchange.

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