Skechers USA 3Q profit declines 15 percent

Skechers USA 3rd-quarter earnings decline 15 percent but top Wall Street expectations

• On 3:05 pm EDT, Thursday October 22, 2009

MANHATTAN BEACH, Calif. (AP) -- Shoe company Skechers USA Inc. said Thursday its third-quarter earnings declined 15 percent but still topped Wall Street expectations, as did revenue, on strong demand for fall merchandise.

Its shares jumped 14 percent.

Profit declined to $23.8 million, or 52 cents per share, compared with $27.9 million, or 60 cents per share, last year.

Sales rose slightly to $405.4 million from $403.2 million, helped by demand abroad and positive demand for fall merchandise.

Analysts polled by Thomson Reuters expected 35 cents per share and revenue of $309 million.

Expenses rose to $151.7 million from $147.4 million a year ago.

Income tax expense was $10.2 million, compared to a tax benefit of $3.6 million during the same period last year because of an advance pricing agreement reached with the Internal Revenue Service.

Standard & Poor's retail analyst Jason Asaeda raised his price target by $8 to $27 on Skechers USA's stock and said that inventory improved, as did domestic wholesale sales. Asaeda's new target implies that shares have room to rise 24.9 percent from Wednesday's close of $21.62.

In afternoon trading, the stock was up $3.03 to $24.65.