Shares of Skechers USA Inc. plunged nearly 24 percent on Thursday, a day after the Manhattan Beach-based footwear maker's third-quarter profit matched analyst estimates but its fourth-quarter guidance came in below Wall Street expectations
Skechers fell 22 percent to settle at $12.33 on Thursday after shares had dropped as low as $12. Trading was at nearly five times the average daily volume.
Late Wednesday, Skechers reported third-quarter net income of $12.6 million (30 cents per share), compared with $6 million (15 cents) for the like period a year earlier. Revenue rose 5.9 percent to $272.8 million.
While the results matched analysts' third-quarter forecast for earnings, revenue came in below the average estimate of $280.66 million.
More investor concern came when the company said it anticipates fourth-quarter earnings of 2 cents to 7 cents per share on revenue of $210 million to $220 million. Analysts expected fourth-quarter earnings of 6 cents per share on revenue of $225.6 million.
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