Clog Maker Crocs Drops After Cutting Third-Quarter Forecast
Crocs Inc. (CROX), a maker of plastic clogs, fell after cutting its third-quarter profit and sales forecasts, citing weakness in the Americas region.
The shares declined 2.2 percent to $13.31 at the close in New York. The stock has dropped 7.5 percent this year.
Crocs, which plans to open 90 locations around the world this year with about half in Asia, said orders in the wholesale unit and performance in the direct-to-consumer business in the Americas have been below expectations. That weakness was partly countered by stronger-than-anticipated revenue and comparable store performance in the Asia Pacific and Europe regions, the Niwot, Colorado-based company said today in a statement.
Net income for the period ending Sept. 30 will be 15 cents to 18 cents a share, down from a prior forecast for as much as 23 cents, Crocs said. Analysts projected 22 cents, the average of estimates compiled by Bloomberg.
Revenue will be $285 million to $295 million, down from the $300 million to $310 million predicted in July. Analysts predicted $305.1 million, on average.
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