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Skechers U.S.A., Inc. Message Board

  • Cartledge Cartledge Oct 27, 2011 3:27 PM Flag

    should be flat today

    As I said yesterday, selling in Amateur Hours at 15 was a good move. I'm sure the .17 jumped off the page to a lot of people as a huge beat.

    The reason I think it is down today, besides the revenue miss, is the international picture that they did not paint as big growth.

    All that being said, there were possitives.
    - margins
    - inventory

    Nothing that warrants going down further. As people have said, where the stock is selling today values the shoe business at $2 / share.

    What is the ROI on that distribution center? They have 1/3rd of the company in it. It needs to start making incremental money. It is not being fully utilized.

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    • My point on the warehouse being under-utilized is on the thinking that it was being planned and built when revenue/volumes were high and going higher. They built to handle current and future growth. It hasn't happened yet. YET. but in the meantime you would assume that they have the ability to profit from the asset.

    • Nice call on the AH sell point. Must admit I did not suspect it to be this bad.

      It might well test the low before it gets better. I hate saying that from the long side. I suspect we saw covering again, the way it seemed to find a bottom, hope so anyway.

      Been racking my brain all day and came up with this, for lack of a better term after I think about it, this company now has no Flagship style to carry it (Twinkle Toes as reported by Weinberg is in slow decline). They need a winner, let's hope the styles he talked about them flying in to test (which he reported selling well in their stores) will help for next spring. If long term we might have another six months to wait/hope. He mentioned women's winter styles, so cross your fingers.

      LOL, I might be searching for straws in all likelyhood with the above thesis.

      At least the balance sheet can still carry them.

      On the points about the new distribution center, they just moved in so suspect they spend this quarter cleaning up the old ones. I was also wrong about one time charges to close the old ones down or just missed it.

    • Have we been given a cost comparison between the new warehouse system and the old system?

      If we are saving money by having more sq. ft I would say that is a net gain.

 
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