Tips for updating employee handbooks from FSG Lawyers. SHACC to host launch book launch for "HOBIE: Master of Water, Wind and Waves." Sean Miller on A52 Warehouse partnership with Dakine. Now on Industry Insight.
"Retailers in general are planning more cautiously," Chief Executive Officer Ron Snyder said in a statement. "In addition, because of our current expense structure, a shortfall in sales versus our expectations disproportionately impacts our earnings results."
Crocs stock was down 39 percent to $10.77 in early morning trading Tuesday.
Crocs, which owns San Clemente-based Ocean Minded sandals, will close its Canadian manufacturing plant to consolidate production at lower-cost facilities, which will result in a one-time pretax charge of about $16 million.
Crocs expects results ranging from a loss of 5 cents to break-even, sharply lower than its previous guidance of 46 cents per share, the Associated Press reported. Excluding a charge related to closing its Canadian manufacturing operations, it predicts net income of 8 cents to 13 cents.
Analysts polled by Thomson Financial had predicted a profit of 45 cents per share.
Crocs cuts its first-quarter revenue estimate to $195 million to $200 million, from its previous guidance of $225 million. Analysts had predicted revenue of $223.3 million.
For the fiscal second quarter, Crocs expects diluted earnings per share between 42 cents and 47 cents. Analysts expected a profit of 79 cents per share.
For fiscal 2008, Crocs expects a profit of $1.54 to $1.64 per share, or $1.70 to $1.80 excluding one-time charges. Analysts had predicted a profit of $2.63 per share, the Associated Press reported.