Shares of global footwear company Skechers U.S.A. Inc. (SKX) are rising over 8% in the pre-market session today, after the company reported a narrower-than-expected loss for the second quarter.
The stock has been trading in the range of $17.06 – $44.50 for the past one year, and closed Thursday’s trade at $31.07, up 29 cents or 0.95%. Trading volume rose over 2.66 million versus an average volume of 2 million shares. Currently, SKX is trading at $33.70, up $2.62 or 8.43% in the pre-market session Friday.
Further, the company said it remains optimistic about the early signs of recovery it witnessed during the quarter, including a return to growth in China, consistent improvement each month in some markets outside of China, and “record shattering growth of over 400 percent in our Company-owned e-commerce business…”
The company’s Q2 net loss was $68.1 million or $0.44 per share compared to a profit of $75.2 million or $0.49 per share last year.
Analysts polled by Thomson Reuters expected a loss of $0.66 per share for the quarter. Analysts’ estimate typically exclude certain special items.
Sales for the quarter declined 42% to $729.5 million from $1.26 billion generated a year ago, but surpassed Wall Street analysts’ estimate of $659.68 million.
Gross margins increased by about 210 basis points as a result of a favorable mix of online and international sales.
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