×
249
Fashion Jobs
LUPIN
Opportunity For Area Manager - Mass Marketing - Lupin Ltd
Permanent · Pune
SOBHA
Manager - Sales at Sobha Nesara, Kothrud - Pune
Permanent · Pune
MIDAS HYGIENE INDUSTRIES PRIVATE LIMITED
Area Sales Manager - Punjab
Permanent · Jalandhar
PETPOOJA
Area Sales Manager || Software Sales (Pos) || Petpooja
Permanent · Navi Mumbai
FLEETX
Assistant Area Sales Manager/ Area Sales Manager
Permanent · Haldia
FLEETX
Area Sales Manager
Permanent · Tirunelveli
MINIVEL SERVICES
Area Sales Manager - Insurance Company
Permanent · Bengaluru
POLYCAB
Area Sales Manager
Permanent · Chennai
ACME SERVICES PRIVATE LIMITED
Purchase Manager For a Leading Textile Brand
Permanent · Mumbai
SBFC FINANCE
Area Sales Manager And Sales Manager- Loan Against Property
Permanent · Ahmedabad
BUSY INFOTECH
Area Sales Manager - Amritsar / Ambala / Shimla
Permanent · Ambala
GRAND CHEMICAL WORKS
Area Sales Manager- Lucknow (gt Fmcg)
Permanent · Lucknow
GRAND CHEMICAL WORKS
Area Sales Manager - Jaipur (gt)
Permanent · Kota
PUMA
Manager- Supply Planning
Permanent · Bengaluru
PUMA
Senior Manager - Performance Marketing- Marketplac…
Permanent · Bengaluru
SURYA FOOD AGRO LTD
Production Manager
Permanent · Greater Noida
SHYAM STEEL INDUSTRIES
Require Area Sales Manager For Different Locations at Bihar
Permanent · Madhepura
PINKODE REALTY LLP
Hiring For Asm/Sales Managers
Permanent · Mumbai
FRQ BRO
Area Sales Manager - Oppo
Permanent · Pudukkottai
FLEETX
Area Sales Manager
Permanent · Tirunelveli
TEACHMINT
Area Business Manager
Permanent · Hubballi
MTC BUSINESS
Production Manager | Khopoli
Permanent · Khopoli
By
Reuters
Published
Oct 19, 2011
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Crocs cuts outlook on sales slowdown, shares dive

By
Reuters
Published
Oct 19, 2011

Mon Oct 17, 2011 (Reuters) - Shoemaker Crocs Inc (CROX.O) lowered its outlook for the first time in three years as it faces softening sales at its stores, amid a weak economy in Europe and shaky consumer confidence in the United States.

Croc
Photo: AFP

The dim outlook sparked a sell-off in the Crocs' stock, wiping out nearly 40 percent of the company's market value in extended trading. They were trading at $17.08 in after-market trade, after closing at $26.64 on Monday on Nasdaq.

"I am not surprised by this type of market reaction," Wall Street Strategies analyst Brian Sozzi told Reuters.

"Any time you have a wholesaler like Crocs saying they missed sales and their margins are below plan, you immediately think of an inventory pile up in the channel."

Crocs, known for its colorful clogs, has seen its stock gain over 55 percent so far this year, excluding Monday's losses, benefiting from streamlining its business, lowering inventory levels and introducing new styles to win customers.

Footwears products like sneakers and boots offered by peers such as Nike Inc (NKE.N), Genesco Inc (GCO.N) and Footlocker Inc (FL.N) have been selling well, analyst Sozzi said.

There is now increased competition among footwear companies and each is vying for consumer's attention, he added.

"(If) they have to choose between Nike shoes and a pair of Crocs that are higher priced than last year, I think they are going to opt for the Nike boots," Sozzi said.

The lower direct-to-consumer sales also ate into the company's gross margins, Chief Executive John McCarvel said in a statement.

Crocs sells its footwear in more than 90 countries through domestic and international retailers and distributors, and directly to consumers through its company-operated retail outlets, kiosks and online store.

Last month McCarvel had told Reuters that trading conditions in the United States and Europe were "patchy."

The company expects July-September earnings of 31-33 cents a share, down from its previous forecast of 40 cents a share. It also projected revenue of $273.0-$275.0 million, compared with its prior outlook of $280 million.

Analysts, on average, were expecting earnings of 40 cents a share on revenue of $280.5 million, according to Thomson Reuters I/B/E/S.

"We experienced some softness in our consumer direct channel in kiosk and outlet locations," McCarvel said.

Crocs further warned that fourth-quarter revenue growth will slowdown to the low teen range in percentage terms from the expected increase of about 27 percent in the third quarter.

(Reporting by Meenakshi Iyer and Nivedita Bhattacharjee in Bangalore; Editing by Viraj Nair)

© Thomson Reuters 2022 All rights reserved.