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Skechers Q2 profit misses expectations

Despite “record sales” for the quarter, Skechers’ profits tumbled in the second quarter.

For the period ended June 30, Skechers’ profit was $45 million, down 23.9% from last year. Earnings per share were 29 cents, well below the 41 cents expected by analysts. The company blamed adverse foreign exchange impacts for the drop.

The retailer had “record sales” of $1.134 billion, which was up 10.6% from the same period last year. This was in-line with expectations.

Same-store sales increased 4.5% globally, which was less than the 5.2% that analysts anticipated. In the United States, same-store sales rose 2.2%.

According to Skechers’ third quarter outlook, the company expects sales be in the range of $1.2 billion to $1.225 billion, and EPS of 50 cents to 55 cents per share. However, this is lower than analysts’ expectations of 67 cents and sales of $1.26 billion.

“We achieved another record sales quarter and continued to see significant growth in our subsidiary and joint venture businesses, which resulted in record sales of $2.38 billion over the first six months of the year,” stated David Weinberg, COO of Skechers.

“With the right product and marketing, we believe there is significant opportunity to further grow our brand, and continue to take market share,” said Robert Greenberg, Skechers CEO.
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