Why Skechers Stock Was Down This Morning
Shares of Skechers (NYSE: SKX) were down 4% as of 11:13 a.m. ET on Wednesday after the footwear maker delivered disappointing earnings results for the third quarter.
The company beat the consensus analyst estimate on revenue but missed on earnings estimates. Still, with the stock trading at a low valuation on top of solid revenue growth, investors have to wonder if the sell-off is overdone.
Skechers reported solid revenue growth of 20% over the year-ago quarter. But earnings per share fell nearly 17% year over year. The miss on the bottom line can be attributed to higher freight costs and congestion at distribution centers that kept the company from meeting what it characterized as "strong demand."
Source Fool.com
