Skechers (NYSE:SKX) traded 28% lower on Friday morning, catching investors by surprise, after lowering Q2 guidance to below that of Wall Street analysts.
Overall, SKX managed a decent earnings call, reporting earnings per share of $0.75 and revenue of $1.25 billion, compared to analyst expectations of $0.74 and $1.20 billion. For Q2 earnings, SKX provided guidance ranging between $0.38 and $0.43, compared to $0.55 expectations. For sales, the company provided the range of $1.12 and $1.14 billion, compared to $1.16 billion expected.
Frankly, this one caught us by surprise as well. Before today’s action, the market cycles and positive momentum in the weekly chart below suggested a rally to $46. But the relatively weak rising phase in its current cycle may have been a signal of risk ahead. The stock is currently trading just above $30, which is a support that could hold. However, clearly, anything is possible. The declining phase points to a low in June, and there are support levels around $30 and $24. With that much time left in this negative phase, the risks are still high.
Skechers (SKX) Stock Chart with Weekly Bars