Crocs shares slide after profit warning
Shares in shoemaker Crocs Inc. fell more than 44 per cent in Friday trading after the company said second-quarter sales and profit would be lower than anticipated.
Colorado-based Crocs, which is listed on the NASDAQ stock exchange, closed at $4.95 US, down $4 from yesterday's close.
On Thursday, Crocs, which makes colourful plastic shoes, said sales in April to June period would range between $218 million and $223 million. The company had expected revenue to be between $247 million and $258 million.
As well, Crocs earnings-per-share will tumble, according to the company's statement. Crocs expects to make between three cents and seven cents a share for the second quarter of this year, down markedly from the anticipated 42 cents to 47 cents.
Three-month stock graph for Crocs Inc.A slumping economy, especially in the United States, was a key factor in the company's falling performance, Crocs said.
"The domestic marketplace proved to be more challenging during the second quarter than we had originally anticipated.… Retailers across the board were extremely cautious with their level of reorders," said company president and chief executive officer Ron Snyder.
In April, Crocs closed a manufacturing facility in Quebec City with a loss of more than 400 jobs. The company had a historical connection with Quebec City, as the place where the specialized plastic Croc shoe was originally developed.
Crocs will take a $1.4-million charge on its financial statements because of the plant closing.
Crocs is expected to release its earnings on Aug. 7.
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