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Skechers USA stock plunges on soft 2024 outlook

Published 02/01/2024, 04:25 PM
Updated 02/01/2024, 04:28 PM
© Reuters.  Skechers USA (SKX) stock plunges on soft 2024 outlook

Skechers USA (NYSE:SKX) stock tanked as much as 13% in after-hours trade after the company reported weaker-than-expected sales for the first quarter.

EPS of $0.56 came in slightly above the estimate of $0.55. However, the company's revenue for the quarter was $1.96 billion, falling short of the consensus estimate of $2.04 billion.

Skechers USA forecasts an EPS range of $3.65 to $3.85 for the full year, way below the consensus of $4.18. Moreover, the company expects full-year revenue to be between $8.6 and $8.8 billion, again below the consensus estimate of $8.94 billion.

Skechers anticipates first-quarter sales to be in the range of $2.175 to $2.225 billion, which compares to the consensus of $2.19 billion. Earnings per share are seen between $1.05 and $1.10, below the expected $1.20.

Moreover, Skechers USA has outlined its capital expenditure plans for the year, estimating total investments to be between $350 and $400 million.

“Skechers' record sales and earnings demonstrate the strong global position of our brand, compelling product assortment, and worldwide execution capabilities,” said John Vandemore, Chief Financial Officer of Skechers.

“2023 was a dynamic year full of challenges, which the Skechers team faced with outstanding determination and agility. We are optimistic about 2024, where we will continue to execute against our long-term growth strategy of expanding internationally and deepening our Direct-to-Consumer relationships, and we remain confident in our sales goal of $10 billion by 2026.”

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