Crocs' 3Q Profit Full of Holes

NIWOT, Colo. (TheStreet) -- Crocs' return to profitability appears to be riddled with more holes than the footwear maker's ubiquitous shoes. And investors are seeing through the company's move into the black, sending shares tanking in afternoon trading.

Despite swinging to a profit, the stock is tumbling 16.2% to $5.74, as Croc's upswing comes predominantly through a massive one-time tax gain.

During the quarter, the company earned $22.1 million, or 25 cents per share, compared to a loss of $148 million, or $1.79, a year earlier.

Results included a one-time $14.4 million tax benefit, a one-time $9.6 million gain from sales and $3.6 million in charges for write-downs, restructuring and charitable donations. Excluding these items, the company would have actually earned just a penny a share, beating analysts' forecast of a loss of 8 cents.

Revenue inched up 2% to $177.1 million from $174.2 million, as the company saw growth in its retail, wholesale and online sales.

Still, the profit does not appear to be built to last. Crocs expects a fourth-quarter loss of 15 cents to 20 cents a share.

-- Reported by Jeanine Poggi in New York

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