Crocs (ticker: CROX), the footwear company known for its unique style, experienced a significant drop in stock prices following their lower guidance for the fourth quarter. While the company posted better-than-expected third-quarter results, the outlook for the upcoming quarter fell short of analysts' predictions.
In the third quarter, Crocs reported adjusted earnings per share of $3.25, surpassing Wall Street's estimate of $3.10. This figure also showed improvement compared to the same period last year when it was $2.97. Additionally, the company's revenue reached $1.05 billion, beating analysts' projections of $1.03 billion.
However, the fourth quarter doesn't look as promising for Crocs. The company expects adjusted earnings per share to range between $2.05 and $2.35, which is lower than the anticipated $2.78 forecasted by analysts.
Looking ahead to the full-year 2023, Crocs is adjusting its outlook. Consolidated revenue growth is now projected to be in the range of 10% to 11%, down from the original forecast of 12.5% to 14.5%. Furthermore, the company expects adjusted earnings per share to be around $11.55 to $11.85, as opposed to the previous estimate of $11.83 to $12.22.
The company's CEO, Andrew Rees, stated that they made decisive moves related to their HEYDUDE brand during the quarter. While he did not disclose specific details about these actions, Rees mentioned that they were part of a strategy to ensure long-term brand health.
Crocs acquired the HEYDUDE brand in February 2022, adding another growth-oriented and profitable brand to their portfolio.
As a result of the revised outlook, Crocs' stock price has decreased by 14% to $75.50 in premarket trading on Thursday.