Skechers reports record sales and the stock has exploded to an all-time high
REUTERS/Shannon StapletonSkechers shares surged to a lifetime high on Thursday after the company reported a quarter that crushed expectations.
The company posted adjusted earnings per share of $1.10, above the estimate of $1, according to Bloomberg.
Revenues came in at $767.9 million, well ahead of the forecast of $703.2. million.
In afternoon trade on Thursday, shares of the company were up almost 13% to an all-time high of $85.66.
In the earnings release, Skechers CEO Robert Greenberg said:
"Having just achieved a new annual sales record of $2.4 billion in 2014, we expected the momentum to continue into 2015 ... Our expanding product line and marketing focus is broadening our demographic reach, including Demi Lovato to tweens and teens as she supports our Skechers Sport line, to avid golfers as Matt Kuchar plays in Skechers GO Golf, and to tech savvy kids with Game Kicks, the shoe with a memory game built in."
Shares rose by more than 12% to as high as $86.49 a share.
Analysts are loving the company's first quarter results. Here's a roundup of what some of them are saying:
Wunderlich reiterated its "Buy" rating and price target at $97, saying the company outperformed "despite industrywide headwinds including FX, unseasonable weather, and the West Coast port slowdown. The Skechers brand remains in high demand across all geographies and demographics, and opportunities to grow distribution and increase penetration around the globe remain plentiful."
B.Riley's Jeff Van Sinderen was also impressed with the company's results despite FX headwinds and the port slowdown. He upgraded the stock from "Neutral" to "Buy" with a $92 price target, writing that it's one of the few companies in the footwear space experiencing strong growth.
BB&T's Scott Krasik upgraded Skechers to "Buy"and raised the stock price target to $94 a share from $62. "This backdrop suggests the current cycle will likely last longer than we previously thought and the broad demand for products indicates to us that the end of the cycle (whenever that happens) will be less severe than in past 'more faddish' cycles."