Crocs Inc. today reported better-than-expected third-quarter results but its fourth-quarter outlook may have sent the firm’s shares tumbling.
As of 1 p.m. ET, the company’s stock remained in the red more than 9 percent, to $8.72.
The lightweight clog maker said its Q3 sales declined 1 percent year-over-year, to $243.3 million, but was better than analysts’ bets for sales of $237.5 million.
The company posted a net loss of $2.3 million, or 3 cents per diluted share, also besting analysts forecasts for a loss of 5 cents per share.
“The third quarter was another strong quarter for us, both in terms of our financial performance and the progress made against our strategic initiatives,” said president and CEO Andrew Rees. “Consistent with the first half of this year, we again met or exceeded our guidance metrics. Furthermore, the perception of the brand continued to rise, with results from our latest annual brand survey showing double digit increases in brand desirability, relevance and consideration compared to last year.”
For the full year, Crocs maintained its full-year outlook and continues to expect 2017 revenues to be down low single digits compared to 2016. For the fourth quarter, the firm predicts that revenues will be between $180 million and $190 million — below analysts’ bets for revenues of $192 million.
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“Looking ahead, we are confident that further operational improvements and a disciplined approach to expense management will facilitate a return to double digit EBIT margins,” Rees said.