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CIBC World downgraded Skechers USA (SKX
) to sector perform from outperform.
Analyst Dorothy Lakner says while the retail environment has been difficult, sneaker and shoe company Skechers also is seeing increased competition. Lakner notes lower sales mainly are due to a lower level of reorders as well as lower sales from international. She says the company's relatively fixed expense base, and the costs of moving to a new Belgian warehouse, as well as reserves related to pending disputes caused the quarter to swing to a big loss.
Lakner cut the five cents fourth quarter earnings per share estimate to a 32 cents loss, and trimmed the $1.44 2002 earnings per share estimate to $1.06 earnings per share. Also, she cut the $1.53 2003 earnings per share to $1.26 earnings per share on basically flat sales. She has a new $10 target.