Why Skechers Stock Is Diving
Portfolio Pulse from Henry Khederian
Skechers USA Inc (NYSE:SKX) shares are trading lower by 4.53% due to a revenue miss and lowered guidance by Foot Locker Inc, a major distributor of Skechers' products. Foot Locker's performance may reflect the overall health of the athletic footwear retail market, potentially indicating weaker consumer demand. Foot Locker's stock is slumping more than 30% following its Q2 results and lowered 2023 sales and earnings guidance.
August 23, 2023 | 1:01 pm
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NEGATIVE IMPACT
Foot Locker's stock is slumping more than 30% following its Q2 results and lowered 2023 sales and earnings guidance.
Foot Locker reported a second-quarter FY23 sales decline of 9.9% year-on-year to $1.86 billion, missing the analyst consensus of $1.88 billion. The company is also pausing its dividend to enhance flexibility, which may further impact investor confidence.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Skechers' stock is trading lower due to Foot Locker's poor performance, which may indicate weaker demand in the athletic footwear market.
Skechers relies on retailers like Foot Locker to sell its products. If Foot Locker, a major distributor, reports lower revenue and weak guidance, it might indicate weaker consumer demand for such products. This could raise concerns about Skechers' sales, as it suggests that one of its key distribution channels is facing challenges.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100