Skechers Shares Soar More Than 30% After Big Earnings Beat On Record Sales
Skechers shares soared in trading Friday after the company posted third-quarter earnings that blew past analysts’ estimates on record sales.
The company’s shares jumped more than 30 percent just after the opening bell.
The sports footwear maker reported earnings excluding items of 59 cents a share, well above the 43 cents a share Wall Street had expected.
Skechers said profit was helped by sales growth in its international wholesale business, its company-owned global retail business, as well as a lower effective tax rate.
“Third quarter net sales of $1.095 billion set a new quarterly record for the company, surpassing our previous record in the first quarter earlier this year by $22 million, and resulted in a new nine-month record with sales exceeding $3 billion,” Chief Financial Officer David Weinberg said in a statement.
He added: “We believe the momentum we are experiencing will continue this year and in the coming year.”
Analysts expected revenue of $1.07 billion, according to Thomson Reuters I/B/E/S.
Skechers also saw a 4.4 percent increase in comparable-store sales.
A slew of analysts upgraded their price targets on the stock in the wake of the report. Wedbush raised its target to $35 from $25, Cowen and Co. boosted its target to $36 from $35, and Morgan Stanley increased its target to $31 from $28.50.
For more information: cnbc.com/skechers-shares-soar-after-big-earnings-beat-on-record-sales
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