What: Shares of shoe company Skechers USA Inc (SKX 2.81%) were up 16% at 3:10 p.m. after the company announced better-than-expected earnings.
So what: Sales jumped 36.4% in the quarter to $800.5 million and net income hit a record of $79.8 million, or $1.55 per share. Analysts were only expecting earnings of $1.01 per share on sales of $736.4 million, so this was a big surprise to the market. "“The continued strong demand for our product worldwide led to record quarterly financial results for the second quarter -- including net sales, earnings from operations and earnings per share," said CFO and COO David Weinberg.
Now what: Not only are volumes increasing, Skechers is also raising prices, a potent one-two punch for the company. In the U.S., sales per pair increased 9%, showing just how much more powerful the brand has become. Considering the great growth and earnings beat I'm surprised shares aren't up even more and certainly see upside if operational momentum continues.
