Skechers' new U.K. headquarters

Skechers USA Inc. stock is falling by more than 13 percent to $27.70 in after-hours trading as the footwear company missed earnings and revenue estimates for the second quarter.

Net income for the quarter was $74.1 million, or 48 cents a diluted share, down from $79.8 million, or 52 cents, a year ago. This missed the Capital IQ estimate for earnings per share of 52 cents per share. The earnings were negatively impacted by 5 cents for currency losses.

Net sales for the three months ended June 30 were $877.8 million, a big jump over last year’s $800.5 million, but also missing the Capital IQ estimate for $888 million. The company noted that the sales figure was a new record.

Skechers achieved new record second quarter net sales of $877.8 million, which led to a $1.86 billion net sales record for the first six months of 2016,” said David Weinberg, chief operating officer and chief financial officer. “The growth in the quarter was primarily attributable to a 34.6 percent increase in our international subsidiary and joint venture businesses and a 40.5 percent increase in our international company-owned Skechers stores.

Weinberg went on to say that in the domestic wholesale business, shipments were pulled forward from April into March resulting in significantly reduced shipments in April and leading to a sales decrease of 5.4 percent in the second quarter, but an increase of 3.2 percent for the first six months.

Another item weighing on investors was that earnings from operations for the quarter were $100.4 million, or 11.4 percent of net sales, a drop from the earnings from operations of $112.3 million, or 14.0 percent of net sales for the second quarter of 2015.

The company said that it believes there is an upside opportunity for the third quarter with net sales estimated to be between $950 million and $975 million. This was also seen as a weak projection by Wall Street investors who had expected big numbers for back-to-school.

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