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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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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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