Skechers withdraws Q1 outlook on uncertainty of the global retail scenario

Skechers USA, Inc. has announced that it is temporarily closing its company-owned Skechers retail stores in North America and select European markets through March 28, 2020 and is withdrawing its first quarter 2020 guidance due to the continuing impact of the COVID-19 outbreak and the resulting uncertainty of the global retail landscape. The temporary closure of company-owned Skechers in North America, the company said, follows the earlier closures of company-owned and third-party owned stores in several severely impacted international regions.

“Given the rapidly evolving coronavirus crisis and the importance of social distancing in curbing the spread of the virus, we believe the closure of our stores is the appropriate decision for the safety of our employees, our valued shoppers, and the public at large,” said David Weinberg, the company’s Chief Operating Officer in a statement.

“When we provided first quarter guidance during our fourth quarter earnings call on February 6, 2020, we stated that our estimates could materially change if the situation worsened. With the outbreak spreading more broadly across the globe, it is apparent that the situation has deteriorated considerably. As a result, we have decided to withdraw our guidance as we are unable to reliably quantify the impact of the COVID-19 outbreak on our future financial results,” added John Vandemore, chief financial officer of Skechers.

The company had earlier announced that for the first quarter of 2020, it expected to achieve sales in the range of 1.400 billion dollars to 1.425 billion dollars, and diluted earnings per share of 70 cents to 75 cents.

Picture:Facebook/Skechers

 

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