Shares of footwear maker Skechers U.S.A. fell 18 percent after the company missed Wall Street estimates for quarterly earnings and announced problems with canceled orders.
The Manhattan Beach company reported net earnings for the third quarter of $36 million (74 cents per share), compared to $25 million (52 cents per share) for the third quarter last year.
Analysts surveyed by Thomson Reuters expected earnings of $1.02 per share for the most recent quarter.
The quarterly announcement also alerted investors that the company had a problem with canceled orders.
“Several accounts over-booked for back to school and canceled orders, resulting in more inventory than initially planned,” Chief Financial Officer David Weinberg said a statement. “We expect to strategically work through this newer inventory at reasonable margins over the next six months or so.”
Shares of Skechers lost $4.17 or 18 percent to $19.46 in midday trading on the New York Stock Exchange.
For reprint and licensing requests for this article, CLICK HERE.