Skechers stock drops even as profit and revenue fall less than forecast

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Shares of Skechers USA Inc. dropped 5.5% in after-hours trading Thursday, even as the shoe seller reported a third-quarter profit and revenue that fell less than expected, as direct-to-consumer same-stores sales dropped 22%. Net income fell to $64.3 million, or 41 cents a share, from $103.1 million, or 67 cents a share, in the year-ago period, as the COVID-19 pandemic continued to impact results worldwide. Excluding non-recurring items, adjusted earnings per share declined to 53 cents from 67 cents, but topped the FactSet consensus of 36 cents. Sales slipped 3.9% to $1.30 billion, above the FactSet consensus of $1.20 billion, as domestic wholesale sales rose 6.3%, while international wholesale sales eased 0.5% and direct-to-consumer sales dropped 16.9%. The company did not provide financial guidance given the ongoing uncertainties resulting from the COVID-19 pandemic. The stock, which closed Thursday’s regular session up 4.4%, has lost 19.2% year to date, while the S&P 500 has gained 2.5%.
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