Skechers Surprises Wall Street with Good Quarter

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Shares of Skechers USA Inc. jumped nearly 20 percent in after-hours trading Wednesday after the trendy shoe maker said inventory reductions and lower operating expenses enabled it to report a first quarter profit that was better than expected.

After the markets closed, the Manhattan Beach company reported net income of $8.2 million (18 cents a share), compared with $32.8 million (70 cents) a year ago. Net sales fell 11 percent to nearly $344 million.

Analysts surveyed by Reuters Estimates on average expected the company to report a per-share loss of 4 cents on revenue of $333 million.

Inventory fell by 34 percent to nearly $173 million, while operating expenses dropped about 4 percent and topped $119 million.

“We are continuing to monitor our expenses and inventory levels to ensure maximum profitability in this soft economic environment, which we believe will continue to negatively impact our business,” said Chief Financial Officer Fred Schneider in a statement.

Prior to the announcement, Skechers shares closed up 20 cents, or 2 percent, to $9.47 on the New York Stock Exchange. They rose 19 percent in after-market trading.

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