Skechers USA, Inc. (NYSE: SKX)
A class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Skechers USA, Inc. (NYSE: SKX) securities during the period between October 20, 2017 to July 19, 2018 (the “Class Period”).
The complaint alleges that, contrary to defendants’ false statements regarding Skechers’ SG&A growth achieving leverage in 2018, Skechers lacked the operational infrastructure to handle demand and sustain true sales growth in its international markets, which forced it to rely on expensive third-party operational solutions to drive its sales growth. As a consequence, Skechers’ SG&A expenses would continue exceed sales growth for the foreseeable future. As a result of defendants’ false statements and/or omissions, the price of Skechers common stock was artificially inflated during the Class Period to a high of more than $42 per share, which allowed certain insiders to sell more than $38.4 million worth of their Skechers stock at artificially inflated prices.
On April 19, 2018, Skechers disclosed that its first quarter 2018 SG&A expenses actually grew by 23.4%, drastically outpacing its 16.5% sales growth. On this news, the price of Skechers stock declined over 27%, but remained artificially inflated due to defendants’ false assurance that Skechers would achieve leverage by the third quarter of 2018. Thereafter, on July 19, 2018, Skechers once again disclosed that its SG&A expenses in the second quarter of 2018 had grown by 19.7%, nearly twice the rate of its sales growth of 10.6%. On this news, the price of Skechers stock fell an additional 20%, to close at $26.27 per share on July 20, 2018.
If you are a current shareholder and/or purchased stock pursuant during the period between October 20, 2017 to July 19, 2018 and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.