Crocs Shares Fall On Weak 2nd-quarter Outlook

"Our intention in 2009 is to preserve the strength of the Crocs brand while endeavoring to strike a balance between lowering our fixed cost base and responsibly reducing our inventory," said Duerden, in a statement.

Wedbush Morgan analyst Jeff Mintz wrote in a note to investors that the company still needs to cut costs significantly to achieve profitability.

He lowered his 2009 earnings estimate to a loss of 78 cents per share from a loss of 75 cents per share and raised his 2010 estimate to 6 cents per share from a loss of 31 cents per share. Analysts expect a loss of 72 cents per share and 33 cents per share, respectively.

"Although we are raising our 2010 estimates in line with the company's expectation that that it will be profitable next year, we note that sales must stabilize and the company must continue its aggressive cost cutting to achieve our expectations," wrote Mintz, who rates the company "Hold." ''Over the next 12 months, we do not see significant potential for shares of Crocs, although short-term swings could continue to be significant."