Lightweight clog maker Crocs Inc. reported third-quarter results before the market open today that missed estimates across the board.
The Niwot, Colo.-based brand posted a Q3 reported net loss of $5.4 million, or 7 cents per diluted share, compared to a net loss of $27.8 million, or 37 cents per diluted share in the year ago same period. While the firm narrowed its year-over-year losses, it still missed market watchers’ forecasts for diluted losses per share of 5 cents. Adjusted net loss was $2 million, compared with a net loss of $19.2 million in the prior year.
Revenues declined 11.6 percent on a constant currency basis, to $245.9 million, and also missed forecasts for revenues of $251.2 million.
“We continue to manage our business tightly in what remains a challenging consumer environment,” Crocs CEO Gregg Ribatt said in a statement. “Revenues were in-line with our expectations while gross margin exceeded our guidance by approximately 200 basis points as we further limited off-price selling and promotional activities. At the same time, we reduced our inventories 11 percent compared with last year.“
The company said it expects lower year-over-year revenues in the fourth quarter. Specifically, revenues are expected in the range of $185 million to $195 million range compared to $208.7 million in the prior year. For the full year, Crocs predicts revenues in the range of $1.034 billion to $1.044 billion.
“Looking ahead, we continue to plan conservatively given the current top-line headwinds,” Ribatt said. “We are working hard to drive quality growth through our product, marketing and distribution strategies and we remain confident that the steps we’ve taken to build a better business model will result in increased profitability and greater shareholder value.”