Skechers Falls Most in Two Years as Back-to-School EndsCraig Giammona
Skechers USA Inc. dropped the most in almost two years in New York trading after analysts said the shoemaker’s sales are declining as the back-to-school shopping season wraps up.
The shares slumped 9.8 percent to $52.40 at the close, the biggest one-day decline since October 2012. The Manhattan Beach, California-based company had gained 75 percent this year through yesterday amid booming sales and efforts to control costs.
Sales fell about 3 percent in the week ended Sept. 20, led by a slowdown in Skechers’ offerings for children, Sam Poser, an analyst at Sterne Agee & Leach Inc., wrote today in a note that cited SportScanInfo data.
“Once again it was the kids’ business that led to the overall sales decline,” Poser wrote. Sales of Skechers’ children’s shoes, which account for 8 percent of its revenue, dropped 42 percent last week, he said.
Poser maintained his buy rating on the stock, saying Skechers remains “quite healthy,” with average selling prices on its products rising 19 percent at mid-tier department stores.