Shares of Skechers USA Inc (NYSE:SKX) plummeted in the pre-market session after the sneaker maker’s second-quarter earnings fell short of Wall Street’s projections and its guidance came in below estimates.
Prior to the opening bell, shares in the Manhattan Beach, California-based company shed 26.3% to US$24.51. In the regular session, shares shed nearly 24% to US$23.34.
Skechers' sluggish performance stemmed from a slowdown in its US wholesale business, according to CEO Robert Greenberg.
"As expected, our domestic wholesale had single-digit decreases in the quarter though much of our business within our core accounts remained solid," he noted in a statement.
Skechers reported net earnings of US$45.3mln, or 29 cents per share in the quarter, a sharp drop from the US$59.5mln or 38 cents per share, the footwear maker earned in the year-ago period.
Its sales came in at US$1.13bn, up from US$1.03bn in the same period a year ago.
Its performance underwhelmed Wall Street analysts who had expected Skechers to earn 40 cents per share on sales of US$1.13bn.
Skechers third-quarter guidance also failed to meet Wall Street’s standards. The company forecasts earnings, excluding some items, of US$0.50 to US$0.55 compared to the consensus estimate of US$0.68.