Crocs Beats Profit And Sales Expectations ,but Cuts Outlook Amid Store Closures

Crocs Inc.'s stock was indicated up over 3% in premarket trade Wednesday, after the casual shoe maker beat first-quarter profit and sales expectations, but provided a downbeat outlook. Net income for the quarter to March 31 rose to $7.16 million, or 8 cents a share, from $6.4 million, or 7 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted net income was $9.3 million. The FactSet consensus was for earnings per share of 3 cents. Revenue fell to $267.9 million from $279.1 million, but was above the FactSet consensus of $258.1 million. The company closed a net 16 stores during the quarter, and signed deals to transfer 24 company operated stores to distributors during the second quarter. Looking ahead, the company expects second-quarter revenue of $305 million to $315 million, below the FactSet consensus of $323 million, and cut its 2017 revenue outlook to be down in the low single-digit percentage range from previous guidance of flat. The stock had dropped 9.6% year to date through Tuesday, while the S&P 500 had gained 7.1%.