Skechers USA Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Skechers USA (NYS: SKX) reported earnings on May 15. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 31 (Q1), Skechers USA beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew. GAAP earnings per share increased.


Gross margins contracted, operating margins increased, net margins grew.

Revenue details
 Skechers USA reported revenue of $451.6 million. The four analysts polled by S&P Capital IQ expected revenue of $443.7 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $352.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.21. The six earnings estimates compiled by S&P Capital IQ averaged $0.17 per share. Non-GAAP EPS were $0.21 for Q1 compared to -$0.07 per share for the prior-year quarter. GAAP EPS were $0.13 for Q1 against -$0.07 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 42.9%, 160 basis points worse than the prior-year quarter. Operating margin was 3.4%, 460 basis points better than the prior-year quarter. Net margin was 1.5%, 250 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $423.3 million. On the bottom line, the average EPS estimate is $0.00.

Next year's average estimate for revenue is $1.83 billion. The average EPS estimate is $0.98.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 491 members out of 519 rating the stock outperform, and 28 members rating it underperform. Among 139 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 132 give Skechers USA a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Skechers USA is outperform, with an average price target of $24.50.

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The article Skechers USA Beats on Both Top and Bottom Lines originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. 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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