SKECHERS USA, Inc.(SKX) has reported 77.37 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $6.66 million, or $0.04 a share in the quarter, compared with $29.45 million, or $0.19 a share for the same period last year.
Revenue during the quarter grew 5.76 percent to $764.29 million from $722.68 million in the previous year period. Gross margin for the quarter expanded 96 basis points over the previous year period to 46.61 percent. Total expenses were 96.30 percent of quarterly revenues, up from 92.43 percent for the same period last year. That has resulted in a contraction of 387 basis points in operating margin to 3.70 percent.
Operating income for the quarter was $28.26 million, compared with $54.71 million in the previous year period.
Robert Greenberg, SKECHERS chief executive officer, commented: "With record annual sales of over $3.56 billion, 2016 was another significant growth year for Skechers. We remained the number two sport footwear brand in the United States, and the number one walking brand, work brand, and dress/comfort casual brand, and received the 2016 Plus Award for Children’s Design from Footwear Plus. We believe we are continuing to increase market share around the globe as we experience the strongest growth coming from our international businesses."
For the first-quarter, Skechers Usa expects revenue to be in the range of $1,050 million to $1,075 million. The company projects diluted earnings per share to be in the range of $0.50 to $0.55.
Debt comes down
SKECHERS USA, Inc. has recorded a decline in total debt over the last one year. It stood at $75.03 million as on Dec. 31, 2016, down 11.37 percent or $9.63 million from $84.65 million on Dec. 31, 2015. Total debt was 3.13 percent of total assets as on Dec. 31, 2016, compared with 4.13 percent on Dec. 31, 2015. Debt to equity ratio was at 0.04 as on Dec. 31, 2016, down from 0.06 as on Dec. 31, 2015.
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