NEW YORK--(BUSINESS WIRE)--Scott+Scott, Attorneys at Law, LLP (“Scott+Scott”), a national securities and consumer rights litigation firm, reminds investors that a class action lawsuit has been filed against Skechers U.S.A., Inc. (NYSE: SKX) (“Skechers” or the “Company”) and other defendants, related to alleged violations of federal securities laws. If you purchased Skechers securities between April 23, 2015 and October 22, 2015, you are encouraged to a contact a Scott+Scott attorney at (844) 818-6982 for additional information.
Skechers designs, develops, and markets footwear for men, women, and children.
The lawsuit claims that Skechers repeatedly touted the strength of customer demand within its Domestic Wholesale segment, which the Company claimed would spur continued sales growth.
However, these statements were false and misleading because the Company failed to disclose that: (1) customers took early receipt of fall 2015 inventory, causing them to delay receipt of and, in some cases, cancel pending orders scheduled for delivery in the second half of 2015; (2) as a result, the Domestic Wholesale segment’s growth rate was unsustainable; and (3) the Company’s positive statements about its business, operations, and prospects therefore lacked a reasonable basis.
Skechers’ slowing sales growth was revealed on October 22, 2015, after the market closed, when the Company issued a press release announcing financial results for the third quarter ended September 30, 2015, which included disappointing net sales that fell short of analyst estimates. Specifically, $20 million in net sales were shifted from third quarter 2015 into second quarter 2015 due to early customer deliveries.
On this news, the price of Skechers common stock fell $14.55 per share, or 31.5%, to close at $31.64 on October 23, 2015.
What You Can Do
If you purchased Skechers securities between April 23, 2015 and October 22, 2015, inclusive, or if you have questions about this notice or your legal rights, please contact attorney Joe Pettigrew at (844) 818-6982, or at email@example.com. Investors have until December 22, 2017, to move for lead plaintiff.
About Scott+Scott, Attorneys at Law, LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.