Crocs Shares Tumble After Weak Outlook
Crocs shares skidded in after-hours trading after the maker of colorful plastic shoes reported a huge jump in profit but issued a weaker-than-expected outlook for 2008.
After payment of preferred dividends, Crocs earnings jumped 84 percent to $38.3 million, or 45 cents a share, in the fourth quarter from $20.8 million, or 26 cents a share, a year earlier.
Revenue nearly doubled to $224.8 million from $112.9 million a year earlier amid a surge in international demand.
But the Niwot, Colo., company backed a 2008 outlook below Wall Street predictions and Crocs shares tumbled 14 percent in after-hours trading. The stock lost 4 percent in regular trading Tuesday.
Analysts polled by Thomson Financial had expected Crocs to post a profit of 44 cents per share on $207.7 million in revenue.
Domestic sales rose about 47 percent to $115.8 million, while international sales more than tripled to $109 million.
Crocs said its gross margin for the recent quarter was hurt by shipping costs, a result of higher-than-expected orders over the holiday season.
For the full year 2007, Crocs earned $168.2 million, or $2 a share, compared with $64.4 million, or 81 cents a share, in 2006. Annual evenue rose to $847.4 million from $354.7 million.