The Ratings Game: Skechers stock plunges 23% after earnings miss and analyst downgrades

Skechers USA Inc. shares took a 23% nosedive in Friday trading after the shoe brand reported an earnings miss and was downgraded at least twice by analysts concerned about the company’s spending.

Skechers SKX, -22.95% late Thursday reported earnings per share of 29 cents, down from 38 cents a year ago and below the 41-cents-a-share FactSet consensus. Global same-store-sales growth of 4.5% was just below the 4.7% FactSet guidance.

Sales rose to $1.135 billion, above the $1.130 billion FactSet consensus.

“We no longer have confidence in the earnings trajectory of Skechers,” wrote Wells Fargo analyst led by Tom Nikic, who downgraded Skechers shares to market perform from outperform.

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