Company: Skechers USA, Inc.
Class Period: October 20, 2017 — July 19, 2018
Court: U.S.D.C. – Southern District of New York
Deadline: November 5, 2018
Kaskela Law LLC announces that a shareholder class action lawsuit has been filed against Skechers USA, Inc. (NYSE: SKX) (“Skechers” or the “Company”) on behalf of purchasers of the Company’s securities between October 20, 2017 and July 19, 2018, inclusive (the “Class Period”).
The shareholder class action complaint alleges that defendants made a series of false and misleading statements and failed to disclose material adverse facts about the Company’s business, operations, prospects and financial health. Specifically, defendants failed to disclose that: (1) Skechers lacked the operational infrastructure to handle demand and sustain true sales growth in its international markets; (2) Skechers was relying on expensive, third-party operational solutions to drive its international sales growth; (3) Skechers’ expenses would outgrow sales for the foreseeable future; and (4) Skechers’ international sales growth was not sustainable without such outgrown expenses. The complaint further alleges that, as a result of the foregoing, investors purchased Skechers’ securities at artificially inflated prices during the Class Period and have sustained significant investment losses.
On April 19, 2018, Skechers reported its first quarter 2018 financial results, including SG&A expense growth of 23.4% – drastically outgrowing the Company’s 16.5% sales growth for the same quarter. Following this news, shares of Skechers’ common stock fell $11.38 per share, or over 27%, to close on April 20, 2018 at $30.70, on heavy trading volume.
Subsequently, on July 19, 2018, Skechers reported its second quarter 2018 financial results. Therein the defendants disclosed that, while sales grew 10.6% from the comparable 2017 quarter, SG&A expenses grew by nearly twice that – or 19.7% – causing earnings from operations to decrease by 5.7%, and net earnings to decline by almost 24%. Following this additional news, shares of Skechers’ common stock fell an additional $6.98 per share, or 21%, to close on July 20, 2018 at $26.27, again on heavy trading volume.
IMPORTANT DEADLINE: Investors who purchased Skechers’ securities during the Class Period may, no later than November 5, 2018, seek to be appointed as a lead plaintiff representative of the investor class.
Investors who purchased the Company’s securities during the Class Period and suffered a financial loss are encouraged to complete the information form on this page, or to contact Kaskela Law at (888) 715 – 1740 to discuss their important legal rights and recovery options.