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Omar Venerio
Omar Venerio
Articles (1728) 

Friday Morning Market Highlights

Markets down, shares of Skechers fall on quarterly results

US Markets

U.S. stocks were in the red on Friday morning. The Dow fell 1.58%to 26,238, the S&P 500 index lost 1.83% to 3,249 and the Nasdaq Composite Index was down 2.51%, to 10,904.

Gainers

• Mohawk Industries Inc (NYSE:MHK) +11.9%

• Abbvie Inc (NYSE:ABBV) +5.2%

• Resmed Inc (NYSE:RMD) +6.7%

• Under Armour Inc (NYSE:UA) +1.3%

Losers

• MGM Resorts International (NYSE:MGM) -7.1%

• Ralph Lauren Corp​ (NYSE:RL) -5.8%

• Cabot Oil & Gas Corp (NYSE:COG) -4%

• ServiceNow Inc (NYSE:NOW) -4.5%

• Weyerhaeuser Co (NYSE:WY) -5.2%

Global Markets

The main European stock markets traded in the red. The U.K.'s FTSE 100 fell 0.39%, France's CAC 40 gained 0.01%, Germany's Dax was down 0.69% and Spain's Ibex 35 slid 0.02%.

In Asia, Japan's Nikkei 225 fell 1.52%, India's BSE Sensex retreated 0.34%, Hong Kong's Hang Seng lost 1.95% and China's Shanghai Composite was down 1.47%.

Skechers releases earnings report

Shares of Skechers U.S.A., Inc. (NYSE:SKX) fell 5% on Friday morning after the company announced financial results for its third quarter of fiscal 2020. It posted earnings of 53 cents per share, beating analysts' estimates by 16 cents, on revenue of $1.3 billion, which declined 3.7% year-over-year but also beat expectations by $90 million.

Chief Operating Officer David Weinberg had the following to say:

"Our third quarter sales were a significant accomplishment during a challenging period. As countries emerged from the crisis, Skechers experienced meaningful sequential sales improvement from the second quarter of 78.3 percent. We also saw a return to growth in many markets and a positive sequential trend in the quarter with September being our strongest month. This resulted in third quarter revenues of $1.30 billion, just a 3.9 percent decrease over the same period last year."

The sales decreases were due principally to the fall on international business. driven by lower distributor and retail sales. However, there were increases in its joint ventures and subsidiary sales, with China growing 23.9% and Europe growing 18.1%.

The gross margin remained flat compared to last year at 48.1% as a consequence of higher promotional activity around the world.

At the end of June, Julian Robertson (Trades, Portfolio) initiated a new position of 24,700 shares in the stock.

Disclosure: The author holds no positions in any stocks mentioned.

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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