Opens at 18-19. If tomorrow had been earlier in the week, you would see it probably a bit more moderately high. Given it is the weekend next day, there will be a lot of selling. They will open the markets fairly low with the hopes of bringing buy orders, but the programs will kick into sell-gear. Monday can be worse. When the institutional investors realize that Trump Presidency is not a far-fetched idea. So now the markets will start pricing in similar results. The question is...where will the markets be done with the sell-off?
The format of BWLD is not unique. These restaurants come and go. Frankly BWLD does not deserve a premium. The smart money is already out of the stock. They reached the point of saturation. The only growth will come from new store opennings. They have already covered the premium locations. Net-net, wait for a reasonable level to be established for the stock. And then you can think about whether to buy into it.
Keep in mind the blowout last quarter was due to the strike that was going on at the LA Port. Most of the revenue was deferred from the previous quarter. Plus, the back-to-school sales were recorded in the last quarter. With those numbers out of the way and the strong earnings by Nike forced SKX to make a lot of adjustments. The end result is the major miss we saw today. The big boys and girls are still buying NIKE shoes. The youth category is not enough to keep SKX afloat. I will monitor it over the next couple of quarters and see where they go from here. For now, I would stay out of SKX.