Skechers sales this quarter will be at least US$1.1 billion ($1.6b), the company says. Photo / Getty Images
Skechers sales this quarter will be at least US$1.1 billion ($1.6b), the company says. Photo / Getty Images
Skechers surged as much as 22 per cent after the trainer maker forecast sales that topped analysts' estimates.
The company's stock has moved at least 20 per cent after four of its past five quarterly earnings reports, twice up and twice down. The shares climbed as high as $31.97 Fridayin New York, the biggest intraday jump in a year.
Business grew both domestically in the US and abroad in the third quarter, the company said. Three months earlier, it reported for the first time that a majority of its sales were coming from outside the US The gap grew even larger last quarter.
"We continue to see international as the biggest growth opportunity for the company," Chief Operating Officer David Weinberg said on a conference call.
Sales this quarter will be at least US$1.1 billion ($1.6b), Skechers said. That compares with the average $1.08 billion estimate of analysts. The company posted profit of 58 cents a share last quarter, which topped projections by 7 cents.
The report wasn't all positive. Same-store sales missed estimates and growth in its home market remained sluggish at 1.8 per cent. Skechers Chief Financial Officer John Vandemore said the company expects to see increased domestic growth in the next three months.
The company offers limited visibility into its expectations moving forward. Skechers only gives projections quarter by quarter, though the company has said it is considering full-year guidance. That could be a welcome shift for investors.
The shares pared some of the day's gains and traded at $29.58 at 12:25 p.m. They had lost 31 per cent this year through Thursday's close.
Skechers shares rose 41 per cent on its third quarter earnings last year. It then dropped 27 per cent in April, and 21 per cent in July after growth slowed and expenses came in higher than projected.
