Shares in Skechers USA Inc. dropped more than 20 percent Tuesday after the company reported poor earnings hit by the rollout costs of a new line of shoes.
Skechers reported second quarter net income of $15 million (32 cents per share), a 15 percent drop from $18 million (40 cents) for the same period a year earlier, falling well short of analysts’ expectations of 43 cents per share, according to a poll performed by Thomson Financial.
Skechers blamed a portion of the dip in profits on increased cost associated with sales support, roll-out, inventory and launch costs associated with its Cali Gear by Skechers shoe line.
Sales for the Manhattan Beach-based shoe and apparel company rose 21 percent to $352 million, which beat Wall Street’s expectations of $350 million.
Shares in Skechers closed down $1.56, or 5.2 percent, to $28.33 and continued to slip another $4.83, or another 17 percent, to $23.50 in after-hours trading Tuesday on the New York Stock Exchange.
