Here’s a Foolish take from Rick Munarriz:
It’s easy to see why Skechers (NYSE:SKX) investors could have been gun shy ahead of this afternoon’s quarterly results. The country’s leading maker of walking footwear had seen its stock shed nearly a third of its value the day after reporting disappointing quarterly results last time out.
Things weren’t as earth-rattling this time around. Net sales hit $722.7 million for the holiday quarter, 27% ahead of the prior year’s showing. That was in line with the same 27% rate that it checked in with when the stock got slammed after its previous report – and well below the 40% and 37% growth rates in showed off during the first two quarters of 2015 – but at least the market was ready for it this time. Steady growth is better than decelerating growth.
Gross margins inched higher, and that’s another welcome sight. Skechers’ operating profit soared 66% to $54.7 million. Some of that margin expansion eroded on the way to the bottom line, as reported earnings climbed just 34% to $29.4 million, or $0.19 a share.
Read the whole thing at http://www.fool.com/investing/general/2016/02/10/skechers-ea…
And, yes, I love how last quarter’s results will always be known as “disappointing”. Oh well, that perception let me buy my shares at cheaper entry points, so I’m not complaining.
Matt
MasterCard (MA) Ticker Guide
Long SKX
See all my holdings at http://my.fool.com/profile/CMFCochrane/info.aspx