U.S. stocks advanced on Friday, with Health (up 18%), Commercial (up 11%) and Tech Services (up 9%) among the sectors with major gains. The Dow Jones Industrial Average gained 0.23% to 27,290, the S&P 500 index gained 0.15% to 2,999, and the Nasdaq Composite Index rose 0.25% to 8,226.
Shares of Skechers U.S.A. Inc. (SKX, Financial)Ă‚ gained more than 13% after announcing second-quarter results. The company posted earnings of 49 cents per share and $1.26 billion in revenues, reflecting 11.5% growth from the comparable trimester of the previous year. The company beat earnings estimates by 16 cents and revenue expectations by $30 million.
“As the world continues to become closer and digital becomes a critical means of communicating and embracing trends to tell your brand’s story, it’s no longer what is happening in one market that matters; it’s what’s happening across all markets. We’re continuing to strategically view our business with a global lens as trends are traveling faster,” stated Robert Greenberg, CEO of Skechers.
In the quarter, the gross margins decreased despite higher domestic margins from improved retail pricing and product due to expenses in promotional issues in international markets. The working capital reached $1.587 billion, which was $128.2 million lower than Dec. 31, 2018, and $78.8 million lower than June 30, 2018, due to current liabilities recognition.
Further, the company repurchased 511,000 shares at a cost of $15.0 million, and $20.0 million remained available under the current plan.
Looking ahead to the third quarter, the company expects sales between $1.325 billion and $1.350 billion, and diluted earnings per share of 65 cents to 70 cents.
During the quarter ended March 31, Steven Cohen (Trades, Portfolio) initiated a new position with 39,847 shares and Jim Simons (Trades, Portfolio) with 50,500 shares.
On the other hand, Robert Olstein reduced its holding by 53.14% to 117,538 shares, Richard Snow trimmed his position by 24.07% to 1,422,889 shares, and Joel Greenblatt (Trades, Portfolio) curbed his position by 62.23% to 197,741 shares, while financial genius Paul Tudor Jones (Trades, Portfolio) sold out the stock.
Gainers
• Boeing Co. (BA, Financial) +3.82%
• Freeport-McMoRan Inc. (FCX, Financial) +2.78%
• Kansas City Southern (KSU, Financial) +2.14%
• Arista Networks Inc. (ANET, Financial) +2.09%
• Microsoft Corp. (MSFT, Financial) +1.93%
Losers
• Monster Beverage Corp. (MNST, Financial) -1.35%
• News Corp. (NWS, Financial) -1.06%
• Edison International (EIX, Financial) -1.01%
• Garmin Ltd. (GRMN, Financial) -0.90%
• Hess Corp. (HES, Financial) -0.01%
Global markets
The main European stock markets traded mostly higher. The U.K.'s FTSE 100 rose 0.13%, France's CAC 40 inched up 0.17%, Germany's Dax gained 0.22% and Spain's Ibex 35 lost 0.48%.
In Asia, Japan's Nikkei 225 jumped 2%, India’s BSE Sensex fell 1.44%, Hong Kong's Hang Seng climbed 0.07% and China's Shanghai Composite advanced 0.79%.
Disclosure: The author holds no positions in any stocks mentioned.
Read more here:Ă‚
US Stock Market Advances ThursdayÂ
Wall Street Lower on WednesdayÂ
US Stocks Little Moved as Earnings Roll In TuesdayÂ
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
