…they had a good earnings release today with the stock currently up 22% after hours.
http://skx.com/press-releases/
SKECHERS Achieves New Quarterly Sales Record in Its Third Quarter 2017
Record Quarterly Net Sales of $1.095 Billion and $3.194 Billion for the Nine Months
Diluted Earnings per Share of $0.59 for the Third Quarter and $1.57 for the Nine Months
Gross Margins of 47.5 Percent for the Third Quarter and 46.5 Percent for the Nine Months
Whew, we have earnings growth! Just one quarter, trying to not get too excited, but this has been a long time coming for some of us, amirite? Anyway earnings crushed expectations:
Shares for Skechers USA Inc. are surging in after hours trading — up more than 20 percent, to $28.84 as of 4:30 p.m. ET — on the heels of a blockbuster earnings beat.
The casual athletic brand produced third-quarter profit growth of 42 percent, to $92.3 million, or 59 cents per diluted share, besting market watchers’ forecast for diluted EPS of 43 cents.
With significant help from a booming international business — the segment represented 53 percent of Skechers’ revenues in the third quarter — the company said its total sales climbed 16.2 percent year-over-year, to $1.1 billion, which was roughly in line with analysts’ bests.
Read the entire article at http://footwearnews.com/2017/business/earnings/skechers-q3-e…
From the press release:
Mr. Weinberg added: “We remain committed to investing in the brand, product, infrastructure, and all areas that will drive further growth opportunities. Our international business continues to have the highest growth potential—both with emerging international markets such as those in South America as well as India, and our established business across Asia. To further build our brand globally, we grew our Company-owned store base worldwide to 623 locations, including 187 international stores. Combined with the third-party Skechers stores, there were 2,428 Skechers stores around the world at quarter end.”
From http://phoenix.corporate-ir.net/phoenix.zhtml?c=80336&p=…
Here are the numbers I’ve got:
Net Sales (millions) Q1 Q2 Q3 Q4
2013 515.8 450.7
2014 546.5 587.1 674.3 569.7
2015 768.0 800.5 856.2 722.7
2016 978.8 877.8 942.4 764.3
2017 1072.8 1025.9 1094.8
EPS (diluted) Q1 Q2 Q3 Q4
2013 0.18 0.09
2014 0.20 0.23 0.33 0.14
2015 0.37 0.52 0.43* 0.19
2016 0.63 0.48 0.42 0.04
2017 0.60 0.38 0.59
*SKX 3-for-1 stock split 10/15/15, but all EPS figures are split-adjusted
2017 Q3 Earnings:
Revenue Growth (millions)
2016 Q3 TTM Revenue = 3521.7
2017 Q3 TTM Revenue = 3957.8
Year Over Year Revenue Growth =12.4%, previous quarter rev growth 10.8%
EPS Growth (diluted)
2016 Q3 TTM Earnings = 1.72
2017 Q3 TTM Earnings = 1.61
Year Over Year EPS Growth =(6.4%), previous quarter EPS growth (16.7%)
P/E (Check Current Price) = 24.03/1.61 = 14.93
Will go through conference call over the weekend and report back with notes.
Matt
Long SKX
MasterCard (MA), PayPal (PYPL), Skechers (SKX) and Square (SQ) Ticker Guide
See all my holdings at http://my.fool.com/profile/CMFCochrane/info.aspx
Up 34% as I type. Niiice!
Matt
Long SKX
Now there’s a coiled spring just waiting for some good news!
Up 37%…
Now there’s a coiled spring just waiting for some good news!
Up 37%…
So how heavy was the short interest? (Upwards of 7 million shares.)
It sure smells like a squeeze.
Yes, quite a response.
I was short $25 puts and so I was watching. It was amazing to me that with one day to expiration, the $25 put was going for $1.50, and the stock was going for $24.75. 5% for a fairly stable stock based on earnings seemed like a big number. Clearly there was an expectation of something! Since I also had a good position in SKX, I am very happy with the result. The market finally is rewarding them for the international growth that has been going on for awhile.
Randy
Long SKX and short puts that expire worthless today.
The market finally is rewarding them for the international growth that has been going on for awhile.
Yep, that’s why I’ve been holding, and ended the day closing up over 41%, from $24 close yesterday, to $34 today! Suddenly vaulted my SKX position into a top 10 holding for me!
SKX is now back to about where it was in the spring of 2016.
In a George Costanza move, I was short $30 calls that expired on 10/20, because I didn’t check the earnings report date when I sold them. I still made money on this forced sale of SKX, and now I’ll either stay on the sidelines or buy on a dip.
SKX is now back to about where it was in the spring of 2016.
True, but if you’ve been adding since the spring of 2016, at prices from the low to mid 20’s, this Friday’s 40%+ pop was a great thing to be a part of, and the growth looks like it should continue for the company and the stock!