Crocs’ strong sales can’t overcome guidance cut

BROOMFIELD — Crocs Inc. (Nasdaq: CROX) grew its year-over-year sales 6.2% in the third quarter to nearly $1.05 billion, but the casual footwear giant saw its stock price slip on Thursday on news that it is lowering its full-year revenue growth and earnings per share guidance.

Income from operations increased 3.7% year-over-year to $273.9 million in the most recent period. 

“We delivered a strong third quarter, exceeding the high-end of our guidance, led by double-digit revenue growth in our Crocs Brand supported by healthy full-price selling and industry-leading operating margins,” Crocs CEO Andrew Rees said in a prepared statement. “Both our brands gained share during the back-to-school season. During the quarter, we took decisive action around Heydude to accelerate our marketplace management strategy to ensure long-term brand health. As such, we are adjusting our full-year outlook to reflect this shift.”

Still, the quarterly performance may not be enough to meet previous full-year 2023 projections.

The company reduced its consolidated revenue growth guidance from between 12.5% and 14.5% to between 10% and 11%, while adjusted earnings per share projections are now  $11.55 to $11.85, down from $11.83 to $12.22. 

Crocs stock lost 5.29% on Thursday, finishing trading at $82.79.

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