Skechers USA Inc (NYSE: SKX) shares fell more than 22%, after the designer and marketer of Skechers-branded lifestyle footwear reported weak 2nd quarter earnings report.
The company reported second-quarter earnings of 48 cents a share, below analysts’ expectations of 53 cents a share. The reason for disappointing EPS is partially due to the domestic wholesale segment of the company, net sales of which decreased 5.4% in the second quarter. The company explained this, saying there was a “significant pull forward of orders into the first quarter this year as well as the challenging and promotional retail environment, which included closing of some account doors and a surplus of product in the marketplace.”
As a result, net sales were down 25% in the month of April due to the shift, and even though sales increased 6.5% in June, the 2nd quarter still reported a 5.4% in total.
Skechers CEO Robert Greenberg added in a statement that company is facing “economic and political uncertainty in both the United States and abroad, as well as challenges in the domestic retail space resulting in a promotional sales environment.”
Speaking on the international business segment, the wholesale and retail business combined represented 41.9% of the total sales for the second quarter and 45% for the six months ended June 30.