It was all about shoe earnings on Thursday.
Skechers ran away with the earnings prize after delivering a record second quarter following the market’s close on Wednesday. Skechers reported net sales of $800.5 million, much higher than last year’s $587.1 million for the same period. Net profit came in at $1.55 a share, a 128 percent increase over last year’s 68 cents a share. Analysts had only expected profits of $1.01 a share on revenue of $736.4 million. The stock jumped over 11 percent in early trading today to $143.47. Skechers is now the number one walking brand and the number two athletic footwear brand in the U.S.
Steve Madden saw sales increase, but earnings drop. The fashion footwear company reported that net sales increased 9.4 percent to $323.6 million, much higher than last year’s $295.7 million. Net income, though, was only $24.5 million or 40 cents a share, lower than last year’s $28 million or 44 cents a share. However, it beat analyst’s expectations for earnings of 39 cents a share. Steve Madden projected that net sales will increase 7 percent to 9 percent for fiscal 2015 over last year and earnings for fiscal 2015 should be in the range of $1.85 to $1.95. Investors were happy with the results, pushing the stock up over 6 percent to trade at $44.23.
The market was also happy with Crocs as shares traded up 4 percent to near $14.74 even as the company lowered guidance. Crocs delivered adjusted earnings of 29 cents a share, beating analysts’ expectations of 25 cents a share, but missing the estimates for revenue. Crocs turned in $345.7 million in second quarter revenue, but analysts wanted to see $346 million. Guidance for the current quarter was also lower than the market had hoped for. Crocs said revenue for the quarter ending in September would be in the range of $280 million to $290 million, lower than the desired $296.3million.
Avon continues to struggle as revenue dropped 17 percent for the second quarter, while earnings per share were up 75 percent to 7 cents a share. Net income was $30 million, higher than last years $20 million or 4 cents a share. Active representatives were down 2 percent in North America, but grew globally. Total units decreased 4 percent and fashion and home sales dropped 14 percent. Gross margins dropped 60.9 percent mostly blamed on currency. The company expects the challenging environment to continue.
Oshkosh missed its earnings estimates by 12 cents when it reported third quarter earnings of $1.13 a share, much lower than the anticipated $1.125. Earnings fell 16.6 percent year over year to $1.61 versus the consensus of $1.73. Oshkosh lowered guidance for fiscal year 2015 to a range of $3.00-$3.25 versus the Capital IQ estimate of $3.76.
Shopify beat its earnings estimates when it reported second quarter earnings of $0.03 a share, six cents better than the expected earnings of ($0.09) from capital IQ. Subscription solutions revenue grew 64 percent driven by an increase in the number of merchants using the platform. Shopify issued upside guidance for FY15 with revenues in the range of $181 to $183 million, higher than the expected $159 million.
National Retail Properties delivered strong results for its second quarter. Funds from operations (FFO) increased 10 percent over the prior year for the second quarter and portfolio occupancy is at 98.8 percent. The company sold three properties for $2.2 million producing $30,000 in gains and invested $147 million in 37properties.
In economic news, GDP for the second quarter was up 2.3 percent less than the economists estimates of 2.5 percent. While it missed the mark, many investors were encouraged to see consumer spending increased 2.9 percent, much higher than the first quarter’s increase of 1.8 percent after a downward revision. The personal consumption expenditures price index went up 2.2 percent, the fastest since the first quarter of 2012. A combination of lower gas prices and a firming job market led to the improved consumer spending.
U.S. disposable personal income increased by $118.6 billion or 3.7 percent. Apparently consumers are tired of saving because personal saving came in at $640 billion, down from the first quarter when Americans saved $683 billion. Jobless claims came in at 267,000 up 12,000, but still near 42 year lows.