01-06-2016, 09:36 AM
Even though Skechers did miss Wall Street's consensus revenue estimate, Cramer did not consider it a big miss. Its sales still increased 27 percent, year over year, though earnings were suboptimal with a 12-cent miss from a 55-cent basis. Cramer attributed the culprit of the miss being the work of a strong dollar, a $5 million personal injury lawsuit settlement and increased deferred rent expenses of $3.5 billion at the company's Fifth Avenue store in New York City. "If not for these three items, Skechers would have actually beat the numbers," Cramer said.
Skechers exec to Cramer: We will double in 5 years
Most important of all, Skechers maintained its guidance for the next quarter. Could this be a rare buying opportunity for the stock? To find out, Cramer spoke with the Skechers chief operating officer and chief financial officer, David Weinberg. He said that he thinks this was an overreaction, stating, "Business is very good and continues to be very good." Weinberg also added that Skechers was assured by all of its partners that the sell-through rates and reasons for slight weakness at the end of September were not due to the company, but due to an overall condition. The term sell-through refers to the percentage of units shipped that were actually sold.