And yet another sell-off in Skechers (SKX). Surprising and not surprising at the same time. However, keep in mind that:
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Revenue is still growing at 10%
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In the quarter, domestic retail sales increased by 8.1% and international retail sales by 45.3%
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International wholesale business increased by 18.3%
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US wholesale business declined by 3.4%
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at September 30, 2016, we had $665.3 million in cash and cash equivalents or $4.29 per diluted share (that is, they still added $$36M to cash in the quarter)
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Long-term debt was $67.6 million compared to $70.1 million at September 30, 2015.
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Capital expenditures for the third quarter were approximately $25.8 million, of which $12.9 million was primarily related to 11 new company-owned domestic and international store openings and several store remodels, and $5.5 million for equipment upgrades and automation of our European distribution center. We expect our capital expenditures for the remainder of 2016 to be approximately $5 million to $10 million, which includes an additional 15 to 20 retail store openings and the completion of our European distribution automation system later this year.
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With over 1,710 retail stores worldwide and a planned 1,850 to 1,875 by year end, we believe they are powerful brand building tools
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Diluted earnings per share were $1.53 on approximately 155 million average shares outstanding compared to diluted earnings per share of $1.31 on approximately 154.1 million shares last year.
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exchange losses of approximately $8.1 million or $0.04 per diluted share.
The latter means that the company will have a 2016 EPS of roughly $2 which means that the shares are trading under 10 times earnings. Net cash is $4 per share, they have a very clean balance sheet and are generating cash, Unless the company comes to a screetching halt in terms of growth, this is very cheap indeed. The only part that isn't performing is the US wholesale business.