SKX Announces Third Quarter Earnings

After 3 knock downs, was I supposed to get up again? What, for more blows. I’m off to do an Ostrich in the kids’ sand pit. Please buzz me when this is over.

We can all look smart in an up market; here comes our maturity test – of course, to make our stomach stronger, weeding time, patience.

Go play with your kids or grand’s.

This too shall pass.

I wish I could provide my phone number, but with all the women who read these boards – well, that would be like waving a lamb chop in front of a wolf.

Yes. So true.

okapimoon,
a woman

3 Likes

Yup, Puddinhead… as the saying goes “the trend is your friend till it ends”

I think SKX is a better buy here than BOFI though.

AMBA has been wrecked, but with 45% short interest, the downtrend is gonna have to end at some point and it will in one crazy short squeeze when it does.

SWKS for one has actually done a pretty good job of accepting prices without a major crash given the state of semis

But in anything that has had a run like these stocks, there are always pullbacks along the way people with varying time horizons get on and off the train. Just sucks to see it happen to some biggies in a short period of time.

Sidenote, CELG & GILD have held up decently in the recent biotech carnage, and I’ve started looking at them again.

well, that would be like waving a lamb chop in front of a wolf. And who needs that particular headache?

Lol, I think you just found your new user name Lamb Chop.

Andy

6 Likes

Lol, I think you just found your new user name Lamb Chop.

Ha ha, Andy, you know better than that! It would confuse people if I changed my user name!

Rich

14 Likes

Saul,

I guess what I mean is that revenues up 27% doesn’t deserve a 30% reduction in price, for any company

That’s not always the case. If the market is modeling (pricing) a stock with the expectation of a 50% growth in revenue, and the revenue comes in up 27%, a 30% reduction in price may be perfectly reasonable. Prices always have some level of expectations built in.

Whether that is the case here, I have no idea; I don’t know the first thing about this company. But generalizations like the one you made can be dangerous, especially when they’re wrong.

Rob

8 Likes

From the conference call Notes: Reasons for the 15c EPS

Of note: The Company’s diluted EPS for the third quarter of 2015 was negatively impacted by several factors including: foreign currency translation and exchange losses; increased legal expenses due to legal settlement and pending litigation; and increased deferred rent expenses related to our new Fifth Avenue location, which opened during the third quarter, and our second Skechers retail store in Times Square, which opened in the fourth quarter. In total, these three items reduced diluted EPS by 15 cents during the third quarter of 2015.

… As I mentioned earlier, our EPS for the third quarter of 2015 was negatively impacted by several factors including foreign currency translation and exchange losses of $13.5 million, and increased deferred rent expenses of $3.5 million related to our new Fifth Avenue Skechers retail store, which opened during the third quarter, and our second Skechers location in Times Square, which just opened. Additionally, earnings per share for the quarter were impacted by a one-time charge of $5 million in the third quarter to settle personal injury lawsuits arising out of our toning business; and higher legal fees and associated costs of approximately $5.9 million primarily related to intellectual property litigation, including the matter of Converse, Inc. v. Skechers USA, Inc. which went to trial before the International Trade Commission in August of this year.

We believe that most, if not all, of these legal matters will come to a conclusion by early next year. In total, these three items reduced diluted EPS by 15 cents during the third quarter of 2015.

And still okay with Analysts’ current estimates

While we are comfortable with the analysts’ current consensus for fourth quarter revenue and earnings, we also see significant potential in the first quarter of 2016 as well as the entire year by investing in our product, marketing and infrastructure.

http://seekingalpha.com/article/3596676-skechers-skx-q3-2015…

1 Like