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Crocs 1Q Loss Widens, Outlook Drives Down Shares

The Associated Press

NIWOT, Colo. (AP) — Crocs Inc., the maker of the ubiquitous plastic sandals, on Thursday reported a smaller than expected first-quarter loss but issued a weak outlook for the second quarter, sending shares tumbling after-hours.

The company reported a loss of $22.4 million, or 27 cents per share, for the quarter ended March 31, compared with a loss of $4.5 million, or 5 cents per share, for the prior-year quarter.

Excluding a loss related to currency exchange rates, the company said it would have posted a loss of 23 cents per share for the latest period.

Total revenue fell 32 percent to $134.9 million from $198.5 million.

The results topped expectations of analysts polled by Thomson Reuters, who had anticipated the company would lose 27 cents per share, excluding one-time items, on revenue of $114.4 million.

Crocs said its retail and Internet sales increased but its wholesale sales decreased 45 percent for the quarter. Many retailers have limited orders and tightened their own inventory during the recession as consumers have cut back on spending.

"There is still much work ahead of us in order to improve on our recent performance and return to consistent profitability," John Duerden, President and Chief Executive Officer of Crocs said in a statement.

The company said it expects a loss of 15 cents to 31 cents per share for the second quarter on revenue between $135 and $160 million. Crocs declined to provide annual guidance at this time given the uncertain global economic situation.

The midpoint of the company's quarterly loss estimate is far worse than the 17-cent loss estimated by analysts, who also have forecast sales of $141.6 million.

Shares of Crocs fell 62 cents, or nearly 18 percent, to $2.86 in aftermarket trading Thursday, having closed earlier down 22 cents at $3.48.