Crocs – the US maker of lightweight clogs – left investors wrong-footed yesterday after reporting a slide in sales and a disappointing outlook.
Revenue fell six per cent to $324m (£243m) from $345m a year ago, below the consensus estimate of $348m. Net income came in at $15.5m, or 13 cents a share, slightly higher than $13.4m a year earlier.
The company lowered its revenue forecasts to between $245m and $255m range, compared with $274.1m in the third quarter of 2015.
For the full year, the company expects revenue to be down by low single digits, blamed on an increasingly “cautious retail environment” and slower turn around in China.
“Despite a decline in our revenue, I am encouraged by our strategic progress, which has enabled us to help mitigate the top-line pressure on profitability by delivering better-than-expected gross margins and managing expenses while reducing inventories,” said Crocs chief executive Gregg Ribatt.
“The global retail environment became more challenging as the second quarter progressed.”
Headwinds were somewhat offset by a 2.9 per cent increase in the brand’s global direct-to-consumer comparable-store sales.