CROCS Earnings: Here’s Why Investors are Devastated

CROCS Inc. (NASDAQ:CROX) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 21.67%.

CROCS Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 29.41% to $0.48 in the quarter versus EPS of $0.68 in the year-earlier quarter.

Revenue: Rose 9.93% to $363.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: CROCS Inc. reported adjusted EPS income of $0.48 per share. By that measure, the company missed the mean analyst estimate of $0.64. It missed the average revenue estimate of $365.12 million.

Quoting Management: “Our second quarter revenue grew 12.5% on a constant currency basis and reflects the global appeal of the Crocs brand, the success of our new spring/summer collections, including the Huarache, A-Leigh, Beach Line Boat and Retro collections, combined with the ongoing strength of our core product line-up,” said John McCarvel, President and Chief Executive Officer. “Globally, our direct to consumer channel continues to be a key component of our success. Our Asia Pacific region remains a fundamental driver of our growth strategy as all channels in the region continue to exceed expectations.”

Key Stats (on next page)…

Revenue increased 16.73% from $311.66 million in the previous quarter. EPS increased 37.14% from $0.35 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.4 to a profit $0.39. For the current year, the average estimate has moved down from a profit of $1.45 to a profit of $1.42 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)