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Skechers U.S.A., Inc. (SKX)

NYSE:SKX

Summary

Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $100,000 In Skechers U.S.A., Inc. To Contact The Firm

Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Skechers U.S.A., Inc. (“Skechers” or the “Company”) (NYSE:SKX) of the November 5, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

If you invested in Skechers stock or options between October 20, 2017 and July 19, 2018 and would like to discuss your legal rights, please fill out the form below.  There is no cost or obligation to you. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com. 

The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Skechers common stock between October 20, 2017 and July 19, 2018 (the “Class Period”).  The case, Laborers Local 235 Benefit Funds v. Skechers USA, Inc. et al., No. 18-cv-08039 was filed on September 4, 2018 and has been assigned to Judge Naomi Reice Buchwald.

The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose: (1) that Skechers lacked the operational infrastructure to handle demand and sustain true sales growth in its international markets; (2) that Skechers was relying on expensive, third-party operational solutions to drive its sales growth; (3) that Skechers Skechers Selling, General & Administrative expenses ("SG&A") expenses would exceed sales growth for the foreseeable future; (4) that Skechers’ international sales growth was not sustainable without the Company’s heavy spending; and (5) that, as a result of the foregoing, the Company’s statements about its business, operations, and prospects, were materially false and/or misleading.

Specifically, on April 18, 2018, the Company reported disappointing Q1 2018 financial results. The company revealed, among other things, that its SG&A expenses surged by 23.4% compared with sales growth of just 16.5%.

On this disclosure, Skechers’ share price fell from $42.08 per share on April 19, 2018 to a closing price of $30.70 on April 20, 2018—a $11.38 or a 27.04% drop.

Then, on July 19, 2018, the Company reported disappointing Q2 2018 financial results. The Company, again, revealed that growth in SG&A expenses substantially outpaced that of its sales.

On this news, Skechers’ share price fell from $33.25 per share on July 19, 2018 to a closing price of $26.27 on July 20, 2018—a $6.98 or a 20.99% drop.

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  • Case:
    Skechers U.S.A., Inc. (SKX)
  •    

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Contact Counsel

Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330

Email:

Case Details

Date:

  • 09/05/2018

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