Skechers Stock Rallies as Company-Owned E-Commerce Grows Over 400%
Expectations are anything but optimistic as the second-quarter 2020 earnings season kicks into high gear, and clothing and apparel is one industry that has been hit especially hard by the economic lockdown to slow the spread of COVID-19. Skechers (NYSE: SKX) was no exception, and the stock's more than 20% drop 2020 to date headed into its report was indicative of that.
However, Skechers held up surprisingly well, with international sales faring far better (down 38%) than those here in the states (down 47%); but within the total, the company's e-commerce segment grew 428% from the same period a year ago. And most surprisingly, Skechers' net cash balance actually grew, implying that even in times of extreme duress, this shoemaker can remain profitable. As a result, shares were up as much as 10% immediately following the update.
That isn't to say the numbers weren't ugly. On the contrary, Skechers reported steep declines in sales as virtually all of its global stores and third-party partners were closed at some point during the period from April to June.
Source Fool.com
