Why Skechers Shares Surged
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What: Shares of footwear maker Skechers were stepping it up a notch today, climbing as much as 15%, after beating expectations in its earnings report.
So what: The casual shoe-maker beat EPS estimates by $0.21, delivering an $0.08 per-share profit on expectations of a $0.13 loss, and revenue jumped 40%, to $395.6 million. COO and CFO David Weinberg said the company "saw improvements across all of our revenue channels, including a 72 percent increase in our domestic wholesale business." International markets and retail stores also delivered strong result, and management said it sees "positive momentum" going into the first half of 2013.
Now what: Backlogs also grew in the quarter for Skechers, so there seems like good reason to believe that the improved performance will continue. Skechers plans to open 30 to 35 additional stores in 2013, which add further revenue as comps grew by double digits last quarter. With analysts expecting just $0.85 in earnings per share this year, I'd expect to see a strong upward revision after this strong earnings beat.
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The article Why Skechers Shares Surged originally appeared on Fool.com.Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool 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.
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