Short story: Beat on revenue, miss on earnings. Guidance looked great on revenue and weak on earnings. AH trading has been a roller coaster ride. When I left work, the stock had dipped all the way down to $24 and change. I was like, “Great. Here we go again.” It is now up about 5%. We’ll see how it does tomorrow. From the press release:
“Second quarter net sales exceeded our expectations setting another record quarter, and making the first half of 2017 a new record with sales surpassing $2 billion,” began David Weinberg, chief operating officer and chief financial officer. “The growth came across our three distribution channels—with double-digit increases in our Company-owned global Skechers retail business, and each of our international distributor, subsidiary and joint venture businesses, as well as a mid-single-digit increase in our domestic wholesale business. Further, in the second quarter of 2017 in our domestic wholesale business, we shipped 11.4 percent more pairs while our average price per pair decreased 4.5 percent.”
…
Mr. Weinberg added: “Investing in our brand and business is critical for both our short-term and long-term growth initiatives. This is evident in both the expansion of our Company-owned global retail business, which had the highest net sales dollar and percentage gain, followed by our international wholesale business. Given the increases in our international business, which for the first six months represented 48 percent of our total business, we believe the greatest opportunity for expansion is internationally, and we are investing in our infrastructure and marketing to support this progress.”
…
Based on these key indicators, the Company believes it will achieve net sales in the third quarter in the range of $1.050 billion to $1.075 billion, which would represent a third quarter sales record, and earnings per share of $0.42 to $0.47. This projection includes flat sales increases in the Company’s domestic wholesale business, and double-digit increases in its international wholesale business, and its global Company-owned retail stores.
See the entire release at http://skx.com/press-releases/
Here are the numbers I 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
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
*SKX 3-for-1 stock split 10/15/15, but all EPS figures are split-adjusted
2017 Q2 Earnings:
Revenue Growth (millions)
2016 Q2 TTM Revenue = 3435.5
2017 Q2 TTM Revenue = 3805.4
Year Over Year Revenue Growth = 10.8%, previous quarter rev growth 8.9%
EPS Growth (diluted)
2016 Q2 TTM Earnings = 1.73
2017 Q2 TTM Earnings = 1.44
Year Over Year EPS Growth = (16.7%), previous quarter EPS growth (13%)
P/E (Check Current Price) = 28.31/1.44 = 19.66
I’ll take notes on the conference call sometime over the weekend.
Matt
Long SKX
MasterCard (MA), PayPal (PYPL), Skechers (SKX) and Square (SQ) Ticker Guide
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