Skechers stock (NYSE:SKX) traded -27% lower on Friday morning, after posting earnings below estimates and lowering guidance.
The company reported earnings per share of $0.29 and total revenue of $1.1 billion, compared to analyst expectations of $0.41 and $1.1 billion.
As well, Skechers revised its projections for Q3 earnings per share to $0.50-$0.55 and revenue to $1.20-$1.22 billion, below estimates of $0.68 and $1.26 billion.
Analysts including Wells Fargo and Susquehanna downgraded the stock and lowered their price targets to $24 and $26 respectively. Meanwhile, the stock posted a new 52-week low today.
In analyzing the SKX market cycles, we can see that it has fallen below the price at which it started it current cycle. Having happened early in the cycle, this indicates the stock has plenty of time to follow through on a possible move lower.
In fact, our new target zone derived from Fibonacci extensions is below $22.
Skechers (SKX) Stock Chart with Weekly Bars
For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel.
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