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On Wednesday, shares of retailer Crocs Inc. (CROX - Free Report) are plunging, down around 24% in midday trading after the company reported lower-than expected quarterly results.
Crocs posted diluted earnings per share of $0.13, missing the Zacks Consensus Estimate of $0.15 per share. Net income came in at $11.7 million, up 2.1% year-over-year, for the second quarter. Revenues fell 6.3% to $323.8 million in comparison to the prior year and missed our consensus estimate of $349 million.
Crocs CEO Gregg Ribatt blamed the global retail environment as a whole, saying it “impacted our wholesale reorder opportunities and contributed to our sales shortfall relative to expectations…Despite a decline in our revenue, I am encouraged by our strategic progress which has enabled us to help mitigate the top-line pressure on profitability by delivering better than expected gross margins and managing expenses while reducing inventories.”
As a result, the company has lowered its revenue forecast for Q3 to between $245 million-$255 million, well below analyst expectations of $289.52 million. And for the full-year, Crocs expects revenue to down low single digits compared to the year ended December 31, 2015. This new guidance reflects a more cautious retail industry as well as slower turnaround in China.
CROX currently sits at a #3 (Hold) on the Zacks Rank. The stock has fallen roughly 27% in the past 12 months as of Tuesday’s close.
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Why is Crocs (CROX) Stock Plunging 25% Today?
On Wednesday, shares of retailer Crocs Inc. (CROX - Free Report) are plunging, down around 24% in midday trading after the company reported lower-than expected quarterly results.
Crocs posted diluted earnings per share of $0.13, missing the Zacks Consensus Estimate of $0.15 per share. Net income came in at $11.7 million, up 2.1% year-over-year, for the second quarter. Revenues fell 6.3% to $323.8 million in comparison to the prior year and missed our consensus estimate of $349 million.
Crocs CEO Gregg Ribatt blamed the global retail environment as a whole, saying it “impacted our wholesale reorder opportunities and contributed to our sales shortfall relative to expectations…Despite a decline in our revenue, I am encouraged by our strategic progress which has enabled us to help mitigate the top-line pressure on profitability by delivering better than expected gross margins and managing expenses while reducing inventories.”
As a result, the company has lowered its revenue forecast for Q3 to between $245 million-$255 million, well below analyst expectations of $289.52 million. And for the full-year, Crocs expects revenue to down low single digits compared to the year ended December 31, 2015. This new guidance reflects a more cautious retail industry as well as slower turnaround in China.
CROX currently sits at a #3 (Hold) on the Zacks Rank. The stock has fallen roughly 27% in the past 12 months as of Tuesday’s close.
CROCS INC Price and Consensus
CROCS INC Price and Consensus | CROCS INC Quote
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