Crocs shares are getting killed in after hours trading on weaker-than-expected Q3 guidance. Shares are down over 35%.
Management now expects $273 to $275 million in revenue and earnings of $0.31 to $0.33 per share. This is down from previous guidance calling for $280 million in revenue and earnings of $0.40 per share.
Analysts were hoping for $280 million in revenue and $0.40 cents per share.
“Our business in Asia has continued to perform very well on the strength of our new product introductions,” said CEO John McCarvel. “After a very positive response to our spring / summer 2011 product line in the Americas, we experienced some softness in our consumer direct channel in kiosk and outlet locations. Gross margins on a consolidated basis were slightly lower in the quarter than our initial expectations driven in part by lower direct sales as a percentage of total revenue.”
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