Crocs shares fall 51 percent in after-hours trading
By Joyzelle Davis, Rocky Mountain News (Contact)
Published July 24, 2008 at 2:38 p.m.
Updated July 24, 2008 at 4:05 p.m.
Shares of Crocs skidded as much as 51 percent in after-hours U.S. trading Thursday after the maker of colorful clogs sharply lowered second-quarter guidance.
Shares of Niwot-based Crocs plunged as much as $4.50 to $4.40 in after-hours trading on the Nasdaq Stock Market. That's less than half Crocs' split-adjusted February 2006 IPO price of $10.50.
The sell-off came after Crocs lowered its earnings guidance for the second quarter, saying the U.S. market turned out to be "more challenging" than originally anticipated. Crocs now expects second-quarter revenue to be in the range of $218 million to $223 million and diluted earnings per share in the range of 3 cents to 7 cents. That's down from the earlier guidance of revenues in the range of $247 million to $258 million, with earnings per share of 42 cents to 47 cents.
"We are obviously disappointed with the economic situation in the U.S. and parts of Europe. However, we remain confident about the long-term prospects of this business," said Crocs CEO Ron Snyder in a statement. "We are currently in the process of sizing our business to be profitable on lower projected sales volumes and these cost actions will continue through the end of the year."
For the full year, Crocs said revenues "are now expected to be down modestly compared to 2007" with diluted earnings per share about break-even.
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July 24, 2008
2:57 p.m.
Diff writes:
(This comment was removed by the site staff.)
July 24, 2008
5:39 p.m.
Suggest removal
Milehighguy writes:
They should start a foam Crocs clothing line to match the shoes.
July 24, 2008
5:59 p.m.
Suggest removal
JluvDC writes:
They are ugly, but very very comfortable. I was having trouble with my left foot and someone suggested trying them. All foot pain completely went away. If only they could make them more attractive!
July 24, 2008
7:03 p.m.
Suggest removal
GlacierDragon writes:
I'm with JluvDC. I have many pairs of crocs in different colors. They're very comfortable and very easy to clean. They also don't smell like rubber sandals do.
I also agree they're quite ugly. But I bought some jibbitz (charms to put in the holes) and made them a lot more fun. (I found the best prices on eBay.)
Crocs are pretty expensive and there are a lot of knock offs. I suspect that's what is hurting them in this economy.
July 24, 2008
7:55 p.m.
Suggest removal
kodijack writes:
earnings per share of 3 to 7 cents?! How many shares do they have? I would have sold the stock too, wow.
July 25, 2008
10:05 a.m.
Suggest removal
M2 writes:
Are we supposed to be surprised? Remember Zuba's.. .those hideous looking pants from the early 90's? Crocs are just as ugly and flat out a fad just as Zuba's were.