Skechers Shares Plummet 35% After Revenue Miss

StocksReuters

Sports footwear maker and retailer Skechers USA's revenue missed analysts' estimates as a strong dollar reduced the value of international sales, sending its shares down 35 percent after market on Thursday.

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International sales, which include retail stores and wholesale, accounted for 43 percent of total revenue in the third quarter ended Sept. 30.

The average value of the dollar rose about 17 percent against a basket of currencies in the third quarter compared with a year earlier.

Revenue rose 27 percent to $856.2 million in the three months ended September, but missed the average analyst estimate of $876.5 million, according to Thomson Reuters I/B/E/S.

Skechers also reported a smaller-than-expected rise in comparable sales.

Comparable sales grew 10.4 percent in the quarter, less than the 10.6 percent rise analysts had expected, according to Consensus Metrix.

Net income attributable to Skechers rose to $66.6 million, or 43 cents per share in the third quarter, from $51.1 million, or 33 cents per share, a year earlier.

The company said legal costs related to a lawsuit with rival Nike's Converse and personal injury cases lowered profit by 15 cents per share in the quarter.

Skechers' shares fell to a low of $30 after the bell.

Up to Thursday's close, the stock had risen nearly 150 percent this year.

(Reporting by Ramkumar Iyer in Bengaluru; Editing by Sriraj Kalluvila)