Crocs stock plunges 18% after weak earnings report

Shares of Crocs Inc. CROX, -23.27% plunged 18% in premarket trade Wednesday after the company reported a far worse-than-expected decline in sales and a disappointing outlook. The company reported net income of $15.5 million, or 13 cents a share, slightly higher than $13.4 million, or 11 cents a share, in the year-earlier period, as the company reduced expenses. Analysts polled by FactSet had been anticipating earnings of 15 cents a share. Revenue fell 6% to $324 million from $345 million a year ago, below the consensus estimate of $348 million. Its outlook for the current quarter also missed expectations and implied further sales declines, which it blamed on a “more cautious retail environment” and slower turnaround in China. The shoe company is guiding toward revenue in the range of $245 million to $255 million, compared with $274 million a year ago, below analysts’ expectations of $289 million. As of Tuesday’s close, shares of Crocs had been down 27% in the past 12 months, versus a 3% improvement for the S&P 500 SPX, +0.31%