Jul 22, 2009
Skechers posts narrower-than-expected second quarter loss
Jul 22, 2009
July 22 (Reuters) - Footwear maker Skechers USA Inc (SKX.N) posted a narrower-than-expected quarterly loss, benefiting from its focus on inventory management and tighter cost controls, and said it expects to be profitable in the second half of the year.
Several apparel and footwear makers have been struggling with higher inventory levels as retailers facing a slump in retail sales and reduced consumer spending cut back on their advance orders.
For the second quarter ended June 30, the Manhattan Beach, California-based company posted a net loss attributable to common stockholders of $5.9 million, or 13 cents a share, compared with a net profit of $14.6 million, or 31 cents a share, last year.
Net sales at the company, which offers shoes under its namesake label and brand names such as Mark Nason, 310 Motoring, and Red by Marc Ecko, fell about 16 percent to $299 million.
Analysts on average had expected a loss of 18 cents a share, on revenue of $305.5 million, according to Reuters Estimates.
Revenue continues to be hurt by the weakness in the global economy, the company said, adding that operating expenses fell 5 percent to $130.7 million for the quarter.
"Like many others, we too have been adversely affected by the economic climate, and have adjusted our inventory levels and expenses to meet the lower demand," Chief Operating Officer David Weinberg said in a statement.
Shares of the company, whose rivals include Deckers Outdoor (DECK.O) and Timberland (TBL.N), closed at $11.82 Wednesday 22 July on the New York Stock Exchange. (Reporting by Abhishek Takle in Bangalore; Editing by Deepak Kannan)
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