stocks

Crocs shares tumble on CFO resignation

Key Points
  • Carrie Teffner will resign as Crocs chief financial officer this month.
  • She will be succeeded by current Zappos CFO Anne Mehlman.
  • The announcement came as part of the company's second-quarter earnings report.
Victor J. Blue | Bloomberg | Getty Images

Crocs shares tumbled on Tuesday after it announced its chief financial officer would step down from that role this month and leave the company next year.

Shares closed down 2.65 percent at $17.64 per share after dipping as much as 9 percent in morning trading, after Crocs said Carrie Teffner, executive vice president and CFO of the casual footwear brand, would be leaving the company next April.

Teffner will be succeeded as CFO by Anne Mehlman, a former vice president of corporate finance for the shoemaker and the current CFO of Zappos. Mehlman will take over on Aug. 24, when Teffner will transition into a role in strategic projects for the company for the remainder of her employment.

"Carrie originally joined Crocs as a Board member in 2015 and stepped into the CFO role to assist with the Company's transformation," said CEO Andrew Rees. "During this time, we have made significant progress, including a return to topline growth and significantly improved profitability."

The announcement came as part of the company's upbeat second-quarter earnings report.

Crocs reported earnings of 35 cents per share, beating the 31-cent consensus estimate of analysts as tracked by Thomson Reuters. Revenue for the quarter came in at $328 million, beating a FactSet consensus estimate of $321 million.

In the year-ago quarter, Crocs reported earnings of 20 cents per share on revenue of $313 million.

The company expects revenue between $240 million and $250 million for the third quarter, which would be in line with consensus estimates.