SKECHERS USA Earnings Preview

Before you go, we thought you'd like these...
Before you go close icon

Investors never know what to expect for SKECHERS USA (NYS: SKX) , as it has wavered between topping and missing analysts estimates during the past fiscal year. The company will unveil its latest earnings on Wednesday, April 25. Skechers USA designs, develops, markets, and distributes footwear. It also operates retail stores and an e-commerce business.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on SKECHERS USA, with five out of six analysts rating it a hold. Analysts don't like SKECHERS USA as much as competitor Brown Shoe Company overall. Two out of five analysts rate Brown Shoe Company a buy compared to zero out of six for SKECHERS USA. Analysts still rate the stock a moderate sell, but they are a bit more wary about it compared to three months ago.
  • Revenue forecasts: On average, analysts predict $336.4 million in revenue this quarter. That would represent a decline of 29.4% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is a loss of $0.27 per share. Estimates range from a loss of $0.38 to a loss of $0.16.

What our community says:
CAPS All-Stars are solidly backing the stock, with 94.3% giving it an outperform rating. The greater community agrees with the All-Stars, as 94.3% give it a rating of outperform. Even with a robust four out of five stars, SKECHERS USA's CAPS rating falls a little short of the community's upbeat outlook.


Management:
Revenue has fallen for the past three quarters.

Now, a look at how efficient management has been at running the business. Margins illustrate how efficiently a company captures portions of sales dollars. SKECHERS USA's operating margins have been decreasing year over year for the last four quarters. Operating margins reflect the total sales revenue that the company retains after costs. See how SKECHERS USA has been doing for the last four quarters:

Quarter

Q4

Q3

Q2

Q1

Gross Margin

40.4%

42.7%

33.2%

40.6%

Operating Margin

(35.8%)

0.6%

(11.1%)

3.1%

Net Margin

(20.1%)

2.0%

(6.9%)

2.5%

We can help you keep tabs on your companies with My Watchlist, our free, personalized service. Add SKECHERS USA now.

Motley Fool newsletter services have recommended buying shares of Skechers USA. The Motley Fool also owns shares of Skechers.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Earnings estimates provided by Zacks.

At the time this article was published

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners