Skechers likely to open higher as 2nd-quarter profit easily beats Wall Street's view

MarketsAssociated Press

Skechers' stock is poised to jump Thursday after its second-quarter profit handily topped analysts' expectations.

The shoe company reported a quarterly profit of $1.55 per share. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 99 cents per share.

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Revenue surged 36 percent to $800.5 million. Sales at company-owned Skechers stores open at least a year rose 12.9 percent.

Chief Operating Officer and Chief Financial Officer David Weinberg said in a written statement on Wednesday that the retailer continued to see strong demand for its products globally during the quarter.

Corinna Van der Ghinst of Citi Investment Research said in a client note that Skechers' management is executing well and its global backlog is still strong. The analyst also believes the company's international business is poised for faster growth in some key markets heading into next year.

Van der Ghinst boosted Skechers' price target to $160 from $142 and maintained a "Buy" rating.

Shares of Skechers USA Inc., based in Manhattan Beach, California, rose more than 12 percent in premarket trading.