(Bloomberg) — Shares of Skechers USA Inc. posted their worst daily performance since February after the footwear company’s chief financial officer told an industry conference that sales in China would be under pressure for the rest of the year.
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Shares fell 9.6 percent on Thursday to close at $61.56, the lowest level since early August. Footwear peers Nike Inc. and Under Armour Inc. saw their shares briefly fall after the comments, but then rebound. Shares of rival On Holding AG fell 2.4 percent.
“We’ve definitely seen worse conditions in China than we anticipated for the back half of the year, so I expect the back half of the year to be more disappointing than we originally anticipated,” Skechers CFO John Vandemore said at the Wells Fargo Consumer Conference. “I think that’s a market that’s still reshaping itself post-Covid.”
China is a key market for global retailers, and concerns about the strength of Chinese consumer spending power have long been a concern. The Asia Pacific region accounted for more than a quarter of Skechers’ sales in 2023, according to a filing.
Thursday’s slump sent Skechers shares into negative territory for the year, but Wall Street is still optimistic about the company.
Wall Street analysts have given Skechers 17 buy ratings and one hold rating, according to data compiled by Bloomberg. The average price target of around $81 is more than 30% higher than where the shares are currently trading.
–With assistance from Janet Freund.
(Stock price movement update at market close)
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