Crocs warns on profits
- Published: 25 July 2008 09:09
- Author: Laura Weir
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- Last Updated: 25 July 2008 09:20
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Crocs, the moulded footwear brand, has slashed its quarterly revenue and earnings per share forecast as the slowing US economy starts to bite.
Crocs said it expected its second quarter 2008 revenue to be in the region of $218 million (£109m) to $223m (£112m) and that diluted earnings per share would be in the range of $0.03 (1p) to $0.07 (3p).
Crocs also revised its outlook for the 2008 fiscal year but said revenues would be down modestly against 2007.
Crocs president and chief executive Ron Snyder said:"The domestic marketplace proved to be more challenging during the second quarter than we had originally anticipated. While we did experience solid sell-through with many of our major accounts, retailers across the board were extremely cautious with their level of reorders, choosing to operate with leaner inventories versus a year ago."
Crocs also admitted that despite stronger international sales than last year, overseas markets were also lagging behind expectations. Sales is Asia are up around 65% while sales in Europe are ahead 13%.
Snyder added: "We are obviously disappointed with the economic situation in the US and parts of Europe, however, we remain confident about the long-term prospects of this business. We are currently in the process of sizing our business to be profitable on lower projected sales volumes and these cost actions will continue through the end of the year."
