Crocs Inc. (NASDAQ:CROX) shares fell 23% to $8.44 over a tough day of trading for the shoe company on Wednesday following disappoinging second quarter results. The stock fell sharply at the beginning of trading, but seemed to level off towards the end of the day. Investors appeared to be unimpressed with a worse-than-anticipated decline in sales.
Revenue for Crocs dropped by 6% to $324 million, compared with $345 million in the previous year. With a bleak business outlook and prospects of continuing sales, investors seemingly have little to look forward to. Nonetheless, Gregg Ribatt, Chief Executive Officer, remained stoic: “Despite a decline in our revenue, I am encouraged by our strategic progress which has enabled us to help mitigate the top-line pressure on profitability by delivering better than expected gross margins and managing expenses while reducing inventories."
He added that the global retail environment had become more challenging. "This impacted our wholesale reorder opportunities and contributed to our sales shortfall relative to expectations. These headwinds were partially offset by a 2.9% increase in global direct-to-consumer comparable store sales, which is a positive indication that consumers are responding favorably to our new product line and enhanced marketing efforts. We remain confident that we have successfully repositioned the business and built the platform to provide sustained growth and profitability over the long-term.”
According to the report, the company sees third quarter 2016 revenue in the $245 to $250mln range. That is significantly less than the $274.1mln that the company saw in the third quarter 2015.