** charts before earnings **
** charts after earnings **
Skechers USA misses by $0.04, misses on revs; guides Q4 revs below consensus :
- Reports Q3 (Sep) earnings of $0.42 per share, excluding non-recurring items, $0.04 worse than the Capital IQ Consensus of $0.46; revenues rose 10.1% year/year to $942.42 mln vs the $954.4 mln Capital IQ Consensus.
- The increase was the result of an 18.3 percent increase in the Company's international wholesale business and a 16.0 percent increase in its Company-owned global retail business with total comp store sales increases of 3.2 percent. Additionally, the negative currency translation impact on the international wholesale and retail sales for the quarter was $15.9 million.
- The Company's domestic wholesale business decreased 3.4 percent, though the number of pairs shipped increased by 0.6 percent compared to third quarter 2015. The decline in net sales dollars was due to a $0.97 or 4.0 percent decrease in average selling price per pair. Impacting the Company's domestic wholesale business was the sluggish retail environment in the United States, which resulted in several retailers either closing doors or ceasing operations, wide-spread discounting on other normally full-priced brands, as well as a shorter back-to-school period.
- Co issues downside guidance for Q4, sees Q4 revs of $710-735 mln vs. $799.99 mln Capital IQ Consensus Estimate.
- This outlook assumes single-digit increases and comps in its international wholesale business and total retail business, respectively, as well as a single-digit decrease in its domestic wholesale business.
- The Company expects its ongoing capital expenditures for the remainder of 2016 to be approximately $5 million to $10 million, which includes an additional 15 to 20 retail store openings and the completion of its European Distribution Center automation system.
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