After Q1, beginning in April, we rose from low $7's to high $9's, then popped with the ernings surprise. High volume as earnings approached. I'm convinced that there were leaks, or that it was difficult for SKX to control Q1 performance information...
Anyway, I'm watching for the same thing in Q2. If PPS starts to drop, it may be a good idea to get out. If we start to rise into earnings - SKX is a Buy.
The tricky thing about Q2 (for me) is that we earned $.18/share in Q1, and management reiterated a break-even H1 (FH 2009) recently. Does that imply that we'll lose $.18 in Q2?? That would be a miss... Comments?
That's the way my simple mind interpreted their announcement.
I've taken a great deal of comfort in three things about SKX: 1. Incredible balance sheet. Fully $5 in cash with no debt. Incredible. 2. The price points of their shoes are at an affordable level for families under financial pressure. 3. Their shoes are not fadish, like a CROX.