Shares of shoemaker Crocs fell more than 16 percent Wednesday after the company missed top and bottom line expectations for the second quarter, and lowered its guidance.
The company posted earnings of 13 cents per share, versus the 15 cents analysts polled by Thomson Reuters had expected. Revenue fell 6.3 percent to $323.83 million, below consensus estimates of $347.72 million.
Crocs lowered its sales guidance to $245 to $255 million, which it said reflects a more cautious retail environment and a slower turnaround in China.
"The global retail environment became more challenging as the second quarter progressed," CEO Gregg Ribatt said in a statement." This impacted our wholesale reorder opportunities and contributed to our sales shortfall relative to expectations."
The headwinds, Ribatt said, were partially offset by a 2.9 percent increase in global direct-to-consumer comparable store sales, which he said is a sign customers are responding well to marketing and a new product line.>
Wholesale and retail revenue decreased, but e-commerce revenue was up 19.5 percent year over year.
"We remain confident that we have successfully repositioned the business and built the platform to provide sustained growth and profitability over the long-term," Ribatt said.
Shares of Crocs closed at $8.44 Wednesday, down from their 52-week high of $15.86. The stock has fallen more than more than 43 percent year over year and is down 17 percent year to date.