What Happened:
Shares of footwear company Skechers (NYSE:SKX) jumped 17.4% in the morning session after the company reported a rare 'beat and raise' quarters. Skechers blew past analysts' constant currency revenue expectations. Its operating margin also outperformed Wall Street's estimates. Looking forward to the full year, the company raised its revenue and EPS guidance for 2024, and both are comfortably ahead of analysts' expectations. Overall, this quarter's results seemed fairly positive, and shareholders should feel optimistic.
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What is the market telling us:
Skechers's shares are not very volatile than the market average and over the last year have had only 3 moves greater than 5%. Moves this big are very rare for Skechers and that is indicating to us that this news had a significant impact on the market's perception of the business.
Skechers is up 7% since the beginning of the year. Investors who bought $1,000 worth of Skechers's shares 5 years ago would now be looking at an investment worth $2,133.
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