Sketchers Stumbles: Guidance Withdrawn Amid Uncertainty
📉 Sketchers shares dropped significantly after the company withdrew its full-year financial guidance.
🌍 The withdrawal was attributed to macroeconomic uncertainty stemming from global trade policies, impacting future outlook.
📊 Although Q1 sales were only slightly below estimates, the guidance removal signals significant concern about future performance.
Sketchers Stumbles: Guidance Withdrawal Overshadows Record Sales
📈 Sketchers reported record quarterly sales ($2.4 billion), showing strong demand, particularly internationally (65% of sales), with EMEA growing 14%.
🇨🇳 Weakness in China dragged down APAC regional sales (-3%), although sales excluding China grew 12%, highlighting China as a significant challenge and area for investment.
📉 Despite record sales, margins contracted, operating income fell significantly (13% to 11% margin), EPS was flat, and the company withdrew its forward-looking guidance, causing the stock to drop post-market.
