For the second quarter the shoemaker reported revenue of 36 cents a share, beating the Capital IQ Consensus of 31 cents a share by 5 cents. Revenue grew 3.6% from the year-ago quarter to $376.9 million. Analysts expected revenue of $372.76 million for the quarter.
Crocs also announced new "strategic performance improvement initiatives," saying it will exit the leases of 75 to 100 stores and lay off about 180 employees. The company will also decrease its number of styles by 30% to 40%, dropping leather boots and dress shoes to focus on sandals, loafers, and other casual shoes.
TheStreet Ratings team rates CROCS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CROCS INC (CROX) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."