"We are concerned about the sharp slowdown in Skechers' domestic revenue in 2016. In addition, we expect the company to be hurt by above-average inventories of athletic footwear and by increased price competition from Under Armour, Nike, and other specialty retailers," analyst John Staszak wrote in a note.
In addition, the footwear company is "facing continued, though diminishing, currency headwinds on the more than 40 percent of its sales that come from overseas."
On the positive side, the analyst maintains his long-term Buy rating on the stock as he expects the company to benefit from rapid growth in emerging markets, especially China and India.
The analyst also cut his 2016 EPS estimate to $2.06 from $2.15 and 2017 estimate to $2.52 from $2.60 due higher operating expenses and the high cost of international store openings.
Staszak also slashed his long-term earnings growth rate forecast to 15 percent from 20 percent.
Shares of Sketchers' closed Friday's regular trading at $24.02 and were trading flat on Monday morning at time of writing.
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