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Earnings Roundup

Skechers profit declines 15%

July 25, 2007|From Times Wire Services

Casual shoe and sneaker maker Skechers USA Inc. said second-quarter net income fell 15%, missing expectations, because of costs for a product launch and accelerated new-store growth.

Profit for the quarter fell to $14.9 million, or 32 cents a share, from $17.6 million, or 40 cents, a year earlier. Revenue rose 21% to $352.2 million.

Analysts polled by Thomson Financial expected higher profit of 43 cents a share on revenue of $351.2 million. In April, the company said it expected earnings of 41 cents to 46 cents a share on sales of $350 million to $360 million.

Manhattan Beach-based Skechers said factors that caused net income to fall included an increase in sales support merchandise for the launch of Cali Gear by Skechers shoes; higher expenses related to developing the Cali Gear by Skechers shoes and other brands; increased warehousing, distribution and personnel costs; and the acceleration of new-store growth.

Shares fell $1.56, or 5.2%, to $28.33 and slipped $1.33, or 4.7%, to $27 in after-market trading.

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