Crocs share price down in after-hours trading as footwear company reveals that clearance sales have had their toll on bottom line, resulting in net losses for its year ended December 2015

 
Hayley Kirton
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Too many promotions have caused Crocs' bottom line to crumble (Source: Getty)

Share price in Crocs fell in after-hours trading after the company revealed that its promotional prices had not produced profits.

The footwear company announced net losses attributable to shareholders for its year ended December 2015 of $98m (£70.4m), a substantial fall from net losses last year of $19m.

Revenue for the company also inched down to $1.1bn, down 1.9 per cent on a constant currency basis.

Share price for Crocs dipped in after-hours trading, falling 1.4 per cent to $9.65.

"Our overall results reflect the impact of higher clearance sales as we made the decision in the quarter to increase our promotional cadence, given the overall retail environment," explained chief executive Gregg Ribatt. "While we still face foreign exchange headwinds from the stronger US dollar and macroeconomic challenges, we are making progress in our transformation efforts.

"I believe we are reaching an inflection point and we will see the benefits of our actions increasingly as 2016 progresses."

For its fourth quarter of 2015, the company performed roughly in-line with guidance, producing revenues of $208.7m, up seven per cent on a constant currency basis.

However, the footwear maker was still loss-making in its final quarter, with net losses attributable to shareholders of $73.9m, down further from the previous year's loss of $56.9m.

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