Skechers U.S.A. Inc., the maker of Shape-ups toning shoes, tumbled the most in almost two months after Sterne Agee & Leach Inc. lowered the shares to “sell,” saying inventory issues “have only worsened.”
Skechers is seeing “continued deceleration of sales in toning and indications that margins are already collapsing,” Sam Poser, a New York-based analyst, wrote in a note today. He also lowered his price estimate to $16 from $30. “We see increasing headline risk, the likelihood of earnings per share evaporating and no sign that inventory issues will be addressed with the appropriate vigor.”
The shares slipped 7.8 percent to $19.58 at 10 a.m. in New York and earlier slid as much as 8.2 percent, the biggest intraday decline since Oct. 28.