Shares of Sketchers U.S.A. Inc. (NYSE:SKX) extended their declines after plunging in post-market trading yesterday as the company forecast second-quarter sales and earnings below analysts’ estimates.
The stock fell 27% to US$30.70 at 10:08 a.m.
That extends a drop of as much as 19% yesterday after the market close when Sketchers said it expects second-quarter sales in the range of US$1.12bln to US$1.145bln, and diluted earnings per share of US$0.38 to US$0.40. That was lower than consensus estimates of US$1.16bln in revenue and US$0.54 per share, according to Zachs.
Still, the footwear company did post gains in earnings and revenue in the first quarter. Net income rose 25% to US$117.7mln, or US$0.75 a share, from US$94mln, or US$0.60 a share, a year earlier. That matched estimates of US$0.75 a share from analysts polled at EarningsWhispers.com. Sales climbed 17% to US$1.25mln.
Wedbush analyst Christopher Svezia cuts his rating on the stock to Neutral from Outperform following the earnings report, thefly.com reported, citing a research note. He also reduced his share-price target to US$34.00 from US$46.00, saying that while there are "some positives" in the results, there are still inefficiences in Sketchers global supply chain.