By Sabela Ojea

Skechers is scheduled to report earnings for the third quarter after the market close Thursday. Here's what you need to know:

--NET PROFIT: Skechers is expected to post a third-quarter net profit of $174.4 million, or $1.14 a share, according to FactSet. This compares with $145.4 million, or 93 cents a share, for the same period a year earlier. The company most recently guided for third-quarter earnings of $1.10 to $1.15 a share.

--ADJUSTED EARNINGS: Stripping out one-time items, Skechers' earnings per share are forecast to come in at $1.16, according to FactSet.

--SALES: The shoe company is expected to log sales of $2.31 billion, according to FactSet. This compares with reported sales of $2.03 billion for the year-ago period. Skechers expects quarterly sales of $2.30 billion to $2.35 billion.

The stock has declined 4.5% over the past three months.

WHAT TO WATCH:

--Investors will look at whether Skechers continues to expect an improvement in its financial performance for the remainder of the year. Finance Chief John Vandemore most recently said that the company sees the consumer in a healthy place. The executive also said that he doesn't really have much concern long term regarding China's consumer spending slowdown.

--Check whether the company's sentiment around international sales remains strong as it deals with a slowdown in sales in the Asia Pacific region and, particularly, in China. In the second quarter, the company said sales rose 7.2% to $1.1 billion in the Americas region, and 2.2% in Asia Pacific. The Europe, Middle East and Africa region saw growth of 14%.

--Investors will closely watch Skechers' outlook, which BofA Securities analysts see as achievable despite a more challenging backdrop in China. Skechers should benefit from strong sales momentum in other parts of the business, including U.S. wholesale and international, excluding China, according to the analysts. The company most recently guided for full-year earnings per share of $4.08 to $4.18, and sales of $8.88 billion to $8.98 billion. Wall Street forecasts per-share earnings of $4.15 and sales of $8.93 billion.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

October 23, 2024 11:11 ET (15:11 GMT)

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