Skechers USA (NYSE:SKX) shares tumbled more than 10% Friday after the company's latest quarterly earnings report missed revenue and guidance expectations.
The footwear company reported fourth-quarter earnings of $0.56 per share after the close on Thursday, $0.01 better than the analyst estimate of $0.55 per share, while revenue for the quarter came in at $1.96 billion, below the consensus estimate of $2.04 billion.
The revenue miss comes despite the company reporting record Q4 sales, which grew 4.4% year-on-year. The rise compared to last year was primarily driven by international sales, which grew 6.9%. Domestically, sales increased 0.3%. In addition, SKX's wholesale business sales declined $86.6 million, or 8.3%.
“Skechers achieved a new fourth-quarter sales record of $1.96 billion and a record gross margin of 53.1%," said David Weinberg, Chief Operating Officer of Skechers. "This success reflects the strong worldwide demand for our comfort technology products, especially in our Direct-to-Consumer business which grew 20%."
Weinberg added that its wholesale business experienced a decrease as several retailers continued to conservatively manage their inventory levels. However, they are optimistic that this behavior is changing based upon early reads from January shipments and positive order trends for the first half of the year.
However, Skechers USA sees its FY 2024 EPS between $3.65 and $3.85, below the consensus of $4.18. Revenue for the period is seen from $8.6 billion to $8.8 billion, compared to the consensus of $8.94 billion.
The company believes that for the first quarter of 2024, it will achieve sales between $2.175 and $2.225 billion and earnings per share of between $1.05 and $1.10.