Market stomps on Crocs after earnings guidance revision
Shares of Crocs dropped by more than 40 percent overnight after the company announced a downward revision to its earnings guidance for the second quarter.
The company expected earnings for the second quarter to come in between 42 and 47 cents per share and revised that estimate last night to between 3 and 7 cents. Actual results will be available in about two weeks.
Crocs burst onto the footwear scene in 2003 with a line of clog-like rubber shoes which, while awkward in appearance, are extremely comfortable. The company went public just two years ago and has seen its stock deflate from a 52-week high of $75+ to it current level of close to $5 per share.
At a cursory glance, this seems to be a case of a good product with unrealistic growth expectations, particularly in gloomy economic conditions. Interesting that now the stock is much cheaper than the shoes.
Tags: crocs, earnings guidance
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