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Friday, November 06, 2009

Crocs Shares Slump On Soft Outlook

By Matt Egan

FOXBusiness

Crocs (CROX) saw its shares dive 12% Friday as the shoemaker’s surprise third-quarter profit was overshadowed by a disappointing outlook for the current quarter.

Crocs earned $22.1 million, or 25 cents a share, last quarter, compared to a loss of $148 million, or $1.79 a share, in the same period a year ago. However, its non-GAAP earnings of 1 cent a share was much better than the Street’s view of a loss of 8 cents a share.

The company’s revenue climbed 1.7% last quarter to $177.1 million, also exceeding consensus estimates.

Shareholders focused on the company’s outlook as it projected a fourth-quarter loss of 15 cents to 20 cents a share on revenue of $110 million to $115 million. Analysts had been forecasting a loss of 16 cents a share on revenue of $113.62 million.

“While we are encouraged by our top-line growth and return to profitability in the quarter, the normal seasonality of our business will make it difficult to maintain profitability in the fourth quarter. However, future wholesale bookings for the spring 2010 line are strong in all regions,” CEO John Duerden said in a statement.

Crocs’ stock tumbled 12.6% to $5.99 in recent trading, significantly underperforming the broader markets. Even with Friday’s slide, shares of Crocs have soared since plummeting to 79 cents a share last fall.

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