Why Skechers Shares Are Plunging After Hours

Why Skechers Shares Are Plunging After Hours

Skechers U.S.A. Inc SKX shares are trading lower in Tuesday's after-hours session after the company reported weak earnings results and issued guidance below analyst estimates.

Skechers said third-quarter revenue jumped 20.5% year-over-year to $1.88 billion, which beat average analyst estimates of $1.81 billion, according to Benzinga Pro. The company reported quarterly earnings of 55 cents per share, which missed average estimates of 73 cents per share. 

"Skechers' ability to deliver record quarterly sales of $1.88 billion was a significant accomplishment, reflecting the ongoing global demand for our comfort technology products, which resulted in double-digit growth in our Wholesale and Direct-to-Consumer segments," said David Weinberg, COO of Skechers. 

Skechers expects fourth-quarter revenue to be between $1.725 billion and $1.775 billion versus average analyst estimates of $1.79 billion. The company expects fourth-quarter earnings to be between 30 cents and 40 cents per share versus average estimates of 51 cents per share.

Skechers is a lifestyle footwear company.

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SKX Price Action: Skechers has a 52-week high of $49.89 and a 52-week low of $31.28.

The stock was down 10.9% in after-hours at $32 at the time of publication. 

Photo: modi74 from Pixabay.

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