Safirstein Metcalf LLP Announces that a Class Action has been Filed Against Skechers USA, Inc. - SKX
Safirstein Metcalf LLP
Sep. 13, 2018
NEW YORK, Sept. 13, 2018 (GLOBE NEWSWIRE) -- Safirstein Metcalf LLP announces that a class action has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Skechers USA, Inc. ("Skechers" or the "Company") (NYSE:SKX) securities during the period between October 20, 2017 and July 19, 2018, inclusive (the "Class Period").
If you purchased Skechers securities during the Class Period and would like more information about the shareholder class action, please contact Safirstein Metcalf LLP at 1-800-221-0015, or email info@SafirsteinMetcalf.com.
If you wish to serve as lead plaintiff, you must move the Court no later than November 5, 2018. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member.
The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 in that defendants failed to disclose among other things, during the Class Period, that Skechers lacked the operational infrastructure needed to handle demand in its international markets. Undisclosed to investors, Skechers was relying on expensive, third-party operational solutions to drive its international sales growth which was not sustainable without such outgrown expenses.
On April 19, 2018, Skechers reported its first quarter 2018 financial results, including SG&A expense growth of 23.4% - drastically outgrowing the Company’s 16.5% sales growth for the same quarter. Following this news, shares of Skechers’ common stock fell $11.38 per share, or over 27%, to close on April 20, 2018 at $30.70, on heavy trading volume.
Subsequently, on July 19, 2018, Skechers reported its second quarter 2018 financial results. Therein the defendants disclosed that, while sales grew 10.6% from the comparable 2017 quarter, SG&A expenses grew by nearly twice that – or 19.7% – causing earnings from operations to decrease by 5.7%, and net earnings to decline by almost 24%. Following this additional news, shares of Skechers’ common stock fell an additional $6.98 per share, or 21%, to close on July 20, 2018 at $26.27, again on heavy trading volume.
About Safirstein Metcalf LLP
Safirstein Metcalf LLP focuses its practice on shareholder rights. The law firm also practices in the areas of antitrust and consumer protection. All of the Firm’s legal endeavors are rooted in its core mission: provide investor and consumer protection.
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Safirstein Metcalf LLP Peter Safirstein, Esq The Empire State Building 350 Fifth Avenue 59th Floor New York, NY 10118 1-800-221-0015