Key Takeaways
- Skechers shares tumbled 12% in premarket trading on Friday as the shoe maker’s outlook fell short of estimates.
- The company’s fourth-quarter revenue was in line with expectations, while adjusted profits came in above projections.
- The company said the impact of the Trump administration’s planned tariffs could force Skechers to make changes to production or prices.
Shares of shoe maker Skechers slumped 12% in premarket trading Friday following a disappointing outlook and the CEO’s comments on the potential impact of tariffs.
Skechers (SKX) after the bell Thursday reported adjusted earnings for the fourth quarter that topped estimates at $130.3 million, or 86 cents per share, while revenue of $2.21 billion was roughly in line with analysts’ projections.
Things were less positive in Skechers’ forward-looking projections, which came in below what analysts expected. The apparel maker said it expects first-quarter revenue of $2.4 billion to $2.43 billion and earnings per share (EPS) of $1.10 to $1.15, below the $2.48 billion and $1.56 EPS consensus estimates compiled by Visible Alpha.
The company also fell short on full-year estimates, expecting revenue of $9.7 billion to $9.8 billion and EPS of $4.30 to $4.50, each below the $9.86 billion and $4.86 per share analysts were expecting ahead of the company’s earnings.
CEO Says Skechers Faces ‘Several Headwinds and Uncertainties’ in 2025
Skechers CEO John Vandemore said in the company’s earnings call that the company faces “several headwinds and uncertainties” in 2025 like exchange rates and “continuing macroeconomic weakness in China,” according to a transcript provided by AlphaSense.
“The recently announced incremental US tariffs on goods from China has impacted our visibility,” Vandemore said. “And while we have not yet fully factored their potential impact and our response into the following guidance, it will likely comprise a combination of actions, including the reallocation of certain production, vendor concessions, and pricing.”
Skechers shares were down more than 12% Friday morning after entering the day up over 30% in the last 12 months.
:max_bytes(150000):strip_icc()/GettyImages-2193637582-4ca0b80fa82141db93444e035c8c5d82.jpg?w=1200&resize=1200,0&ssl=1&description=Skechers+Stock+Tumbles+on+Weak+Outlook%2C+Concerns+Over+Trump+Tariffs){kind=link}