Skechers (SKX) Stock Getting Crushed on Q4 Warning, Analyst Downgrades

Shares of Skechers USA (NYSE: SKX) are getting crushed this morning following a Q4 warning last night and several negative analyst calls earlier. The stock is currently down more than 27%, most recently trading at $7.34.

Skechers said it expects Q4 sales to come in around $290-$300 million, which compares to the Street estimate of $305.20 million. Further, the footwear designer also said it will likely report a quarterly loss in the range of $0.45-$0.50, well below the Street's consensus of a $0.15 gain.

On the analyst front, Skechers was downgraded by Wedbush Morgan, Susquehanna and Sterne Agee and also had its price target cut at CL King.

• Wedbush downgraded Skechers from Buy to Hold and moved its price target from $14 to $6.50. The firm believes yesterday's preannouncement suggests that the company's earnings will likely remain weak well into 2009. Wedbush moved its FY08 and FY09 EPS estimates from $1.71 and $1.35 to $1.12 and $0.31, respectively. The Street is currently expecting FY08 EPS of $1.76 and FY09 EPS of $1.29.
  
• CL King lowered its price target on Skechers from $10 to $7 while maintaining an Underperform rating.
  
• Sterne Agee also downgraded the stock from Buy to Hold.
  
• Susquehanna moved shares of Skechers from Positive to Neutral and also lowered estimates. Click here for more color on the downgrade.

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