Skechers U.S.A. Inc., a maker of sports and casual shoes, raised its fourth-quarter profit forecast as much as 27% on Monday because of increased sales growth. Shares closed at their highest price in more than five years.
Earnings will reach 28 cents to 31 cents a share, up from a previous forecast of 22 cents to 27 cents, the Manhattan Beach company said. Sales will be as much as $300 million, compared with a previous forecast of $265 million.
New products and an advertising campaign promoting them to teenagers boosted sales by more than 30% from $223 million a year earlier, the company said. Sales have increased for 11 consecutive quarters. Skechers expects record fourth-quarter results after "high single-digit" gains in sales at stores open at least a year.
Shares of Skechers rose $2.01, or 6.2%, to $34.54. The last time it closed as high was in May 2001. The stock more than doubled last year.