Look at CROX, -60%. Amazing, shocking.
AP
Crocs lowers guidance for 2nd quarter; shares dive
Thursday July 24, 4:53 pm ET
Crocs lowers guidance for 2nd quarter, sees weak 3rd quarter; shares dive after market close
NIWOT, Colo. (AP) -- Shoe company Crocs Inc. lowered its second-quarter guidance and projected a weak third quarter late Thursday, sending shares plummeting after the market closed.
The company said it expects earnings per share of 3 cents to 7 cents for the second quarter, significantly lower than the 42 cents to 47 cents per share previously expected. The company cited weak sales in the U.S.
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Crocs also said it expects its revenue to be in the $218 million to $223 million range for the second quarter, instead of $247 million to $258 million as previously announced.
Analysts polled by Thomson Financial projected income of 41 cents per share for the second quarter on $248.1 million in revenue.
Crocs also projected third-quarter income of a penny to 5 cents per share, compared with an average analyst estimate of 57 cents. The company guided for quarterly revenue of $195 million to $205 million.
Furthermore, Crocs reduced its full-year outlook. The company now expects to break even in the fiscal year, including a charge of 16 cents per share related to the shutdown of the company's Canadian operations.
Analysts expect third-quarter profit of 57 cents per share on revenue of $282.3 million.
In aftermarket activity, Crocs shares fell $4.55, or 50.8 percent, to $4.40. During the regular session, the stock lost 93 cents, or 9.4 percent, to $8.95. The stock has ranged from $6.75 to $75.21 over the past year.
Despite lower full-year expectations, Crocs said it believes its inventories at the end of the quarter will be down 15 percent compared to the first quarter.
"The domestic marketplace proved to be more challenging during the second quarter than we had originally anticipated," said Ron Snyder, President and Chief Executive of Crocs, in a statement.
He said retailers across the board were "extremely cautious" with their level of reorders, trying to keep their inventories lean as consumer spending tightens.
The company said it saw major growth overseas, but it remained below the company's initial projections.
Crocs is scheduled to host a conference call to discuss its revised outlook on Friday. |
