Skechers shares soar on results

Investors sent Skechers USA Inc. shares up 20% after the Manhattan Beach shoemaker said its first-quarter profit jumped a better-than-expected 37%.

Earnings rose to $32.8 million, or 70 cents a share, from $23.9 million, or 52 cents, a year earlier. Sales climbed 11.6% to $384.9 million on growing international demand and favorable exchange rates. But sales at U.S. stores open at least a year, a key measure of retail health, declined.

Shares of Skechers rose $3.64 to $21.67.

“They did a nice job on the expense end of the business,” said Christopher Svezia, an analyst with Susquehanna Financial Group. “The first quarter was certainly a surprise.”

Skechers said per-share profit probably would be 30 cents to 38 cents for the current quarter. Analysts were expecting 36 cents a share.

“Investors are willing to look past that at this point,” analyst Jeff Mintz said, to focus on “what should be a solid third quarter.”

But Mintz, with Wedbush Morgan Securities in Los Angeles, said, “There is no doubt that Skechers is feeling the impact of slowing consumer spending domestically.”