Skechers USA, the popular shoe brand, saw its stock plunge over 12% in after-hours trading on Thursday. The sharp decline came after the company reported disappointing fourth-quarter earnings and provided a weaker-than-expected outlook for the current quarter and full year.

The company cited uncertainty around the impact of higher tariffs on goods from China as a key factor weighing on its performance and outlook. Chief Financial Officer John Vandemore stated that the recently announced incremental U.S. tariffs on Chinese imports have impacted the company's visibility, and Skechers may need to raise prices or reallocate some production to mitigate the impact.

For the fourth quarter, Skechers reported earnings per share of $0.65, missing analyst expectations of $0.74. Revenue of $2.21 billion also fell slightly short of estimates. While the company saw strong sales growth in the Americas and Europe, its performance in China was dampened by the difficult macroeconomic environment in the country.