Skechers USA (SKX) reported earnings on Thur 9 Feb 2017 (a/h)

• #1, 3-5, 16, 21, 25-7, 52, 58, 61, 75, 93, 94, 97

** charts before earnings **

  

** charts after earnings **

 

Skechers USA misses by $0.06, beats on revs; guides Q1 EPS below consensus, revs above consensus  :

• Reports Q4 (Dec) earnings of $0.04 per share, $0.06 worse than the Capital IQ Consensus of $0.10; revenues rose 5.8% year/year to $764.3 mln vs the $726.21 mln Capital IQ Consensus.
  • The Company's annual effective tax rate for 2016 increased to 20.6 percent from 19.9 percent as of September 30, 2016, which increased its fourth quarter 2016 effective tax rate to 31.5 percent and reduced its earnings per share by $0.02. In addition, the Company's gross margins were negatively impacted by approximately $18.4 million due to negative foreign currency translations and an additional $4.6 million in pre-tax expenses related to foreign currency transaction losses during the fourth quarter of 2016. Further, the Company's business in the United Kingdom was significantly impacted by currency headwinds as its wholesale sales were flat during the fourth quarter in local currency but down 17.9 percent in U.S. dollars.
• Co issues mixed guidance for Q1, sees EPS of 0.50-0.55 vs. $0.66 Capital IQ Consensus Estimate; sees Q1 revs of 1.05-1.075 vs. $1.05 bln Capital IQ Consensus Estimate.
  • Despite an all-time net sales record in the first quarter of 2016 and Easter falling into the second quarter in 2017, the Company believes it will achieve flat to slightly positive sales in its domestic wholesale business, and increases in its international business and Company-owned retail stores.
• "The strong quarterly growth was primarily the result of a 17.1 percent increase in our international wholesale business, led by China with an increase of 48.5 percent. In addition, our global Company-owned retail business grew 13.9 percent on a store base of 571 at year-end. Combined with our third-party owned stores, we had 2,012 Skechers stores worldwide at year-end, creating a global network that includes more than 500 locations in China, more than 60 in each of India, Mexico and Saudi Arabia, and over 50 in each of Australia, Malaysia, South Korea and Taiwan." 
• The Company expects its ongoing capital expenditures for 2017 to be approximately $50 million to $55 million, which includes corporate office upgrades and an additional 70 to 90 Company-owned retail store openings and several store remodels, and an additional $25 million for infrastructure primarily in its China joint venture.