Skechers Q3 Results Beat Wall Street, Outlook Strong; Stock Up 8%

(RTTNews) - Shares of Skechers USA Inc. (SKX) gained 8% in extended session Thursday after the footwear company's third quarter earnings and revenues trumped Wall Street estimates. The company also issued a strong outlook for the fourth quarter.

Skechers' third-quarter profit dropped $90.7 million or $0.58 per share from $92.3 million or $0.59 per share last year. On average, 12 analysts polled by Thomson Reuters estimate earnings of $0.51 per share for the quarter.

Sales for the quarter grew 7.5% to $1.18 billion from $1.09 billion last year. Analysts' had a consensus revenue estimate of $1.22 billion for the quarter.

Sales growth reflects an 11.8 percent increase in the company's international wholesale business, and a 10.6 percent increase in company-owned global retail business.

Third-quarter comparable same store sales in company-owned retail stores worldwide increased 1.9 percent, including an increase of 3.0 percent in the United States offset by a decrease of 0.8 percent in its international stores.

Gross margins slightly increased as higher domestic margins from improved retail pricing and product mix were partially offset by the impact of negative foreign currency exchange rates.

Looking forward to fourth quarter, Skechers expects sales of $1.100 billion to $1.125 billion and earnings of $0.20 to $0.25 per share. Analysts currently estimate revenues of $1.08 billion and earnings of $0.18 per share.

SKX closed Thursday's trading at $26.12, down $0.57 or 2.14%, on the NYSE. The stock, however, gained $2.12 or 8.12% in the after-hours trade.