WASHINGTON, DC (October 20, 2017) — U.S. Market Advisors Law Group PLLC announces that a securities class action has been filed against Skechers U.S.A., Inc. (NYSE:SKX). The class action is on behalf of investors who acquired Skechers common stock between April 23, 2015 and October 22, 2015.
Investors with losses have until December 22, 2017 to ask the Court to appoint you as Lead Plaintiff for the class. The Lead Plaintiff is a representative for absent members of the class. Investors do not need to seek appointment as Lead Plaintiff to share in any class recovery in this action. If you are a class member and there is a recovery for the class, you can share in that recovery as an absent class member. You may retain counsel of your choice to represent you in this action. Contact USMA Law Group to discuss this action.
Allegations Against Skechers
Skechers is a designer and marketer of footwear for men, women and children.
According to the lawsuit, during the Class Period, Skechers repeatedly touted the strength of customer demand within the Domestic Wholesale segment, which the Company claimed would spur continued sales growth. Skechers frequently emphasized that its Domestic Wholesale segment growth would continue into the second half of 2015 based on pending orders and meetings with key customers.
However, Defendants’ Class Period statements pertaining to back-half 2015 customer demand and sales growth related thereto were materially false and misleading because Defendants failed to disclose that: (1) the Company’s Domestic Wholesale customers took early receipt of fall 2015 inventory, causing them to delay receipt of and, in some cases, cancel pending orders scheduled for delivery in the second half of 2015; (2) as a result of the foregoing, the Company’s Domestic Wholesale growth rate was unsustainable; and (3) the Company’s positive statements about its business, operations, and prospects lacked a reasonable basis.
The Company’s slowing sales growth was revealed on October 22, 2015 after the market closed, when Skechers issued a press release announcing financial results for the third quarter ended September 30, 2015, which included disappointing net sales that fell short of analysts’ consensus estimates. According to Defendants, $20 million in net sales were shifted from third quarter 2015 into second quarter 2015 due to early customer deliveries. Defendants blamed the sales miss on the Company’s inability to make up this shortfall in third quarter 2015 due to a weaker-than-expected retail environment.
On news of the Company’s disappointing net sales and diluted earnings per share, Skechers common stock fell $14.55 per share, or 31.50 percent, to close on October 23, 2015 at $31.64 per share.
About USMA Law Group
U.S. Market Advisors Law Group PLLC is a national law firm based in Washington, D.C. The firm represents investors worldwide in U.S. securities class action lawsuits.
David P. Abel