Skechers' Stock Plunges As Disappointing Results Prompt Analyst Downgrade

Skechers USA Inc. shares plunged 15% in premarket trade Friday, after the shoe maker's disappointing second-quarter results prompted a ratings downgrade. Monness Crespi Hardt cut its rating to neutral from buy, citing concerns over the continued deceleration in domestic trends and less favorable valuation. Prior to results, which were reported late Thursday, the stock had climbed 6.5% year to date, while the S&P 500 had gained 5.9%. "Historically, the domestic business has been the leading indicator and international has followed," Monness Crespi wrote in a note to clients. "As a results, we expect concerns about a potential slowdown overseas will continue to linger and weigh on the stock's multiple." Meanwhile, B. Riley analyst Jeff Van Sinderen kept his rating at buy, but cut his stock price target to $32 from $42,