Out of the Gate: Skechers USA drops sharply on 2Q

NEW YORK - Two analysts on Thursday said shoe maker Skechers USA Inc.'s brand remains strong, despite missing expectations in the second quarter, but the market sent shares down sharply in morning trading. Late Wednesday, the Manhattan Beach, Calif.-based Skechers said second-quarter profit fell 2 percent, to $14.6 million, or 31 cents per share, from $14.9 million, or 32 cents per share last year. Analysts polled by Thomson Financial, on average, expected a profit of 34 cents per share. Revenue edged up less than 1 percent to $354.6 million, from $352.2 million last year, while analysts expected revenue of $360.3 million. The company said domestic wholesale growth was down, but wholesale sales in the U.S. were slightly better than expected. Sales at company-owned retail stores were flat, despite a higher store count.... [read full story]