Crocs, Inc. (NASDAQ:CROX) shares are trading lower Thursday after the company said it expects third quarter revenue to be down approximately 9% to 11%.
What To Know: The company reported second quarter adjusted earnings per share of $4.23, beating the consensus estimate of $4.01. In addition, Crocs reported sales of $1.14 billion, inline with the consensus estimate.
Crocs said both its Crocs and HEYDUDE brands contributed to second quarter performance, with the company delivering its highest-ever gross profit quarter. Consolidated revenue rose 3.4% to $1.14 billion, led by 5% growth in the Crocs brand and a 7.6% increase in direct-to-consumer sales for HEYDUDE.
However, the company described the current operating environment as uncertain and said it is cutting inventory receipts and promotional activity to protect brand health. It has also implemented $50 million in cost savings to support long-term margin growth and cash flow.
Q3 Outlook: Crocs sees sales from $945.18 million to $966.42 million, versus the consensus estimate of $1.06 billion.
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CROX Price Action: At the time of writing, Crocs shares are trading 25.3% lower at $78.50 according to data from Benzinga Pro.
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