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Apr-15-2008Crocs Cuts Its Forecast(topic overview)
CONTENTS:
- NIWOT, Colo. - (Business Wire) Crocs, Inc. (NASDAQ: CROX) today announced that, based upon preliminary performance results through March 31, 2008, it expects its first quarter 2008 revenue to be in the approximate range of $195 million to $200 million and expects a loss per diluted share in the range of ($0.05) to $0.00, both of which are below its previous guidance of expected revenues of $225 million and expected diluted earnings per share of $0.46 established in February. (More...)
- During the quarter, the Company has revised the demobilization cost to $62.7 million from the estimate of $93.1 million recorded for the year ended November 30, 2007 as a result of the settlement of six of the major contracts. (More...)
- " While it was a difficult decision to close down our manufacturing facility we believe it was necessary in order to improve our cost structure going forward. (More...)
- The firm's new revenue guidance calls for a figure between $195 million and $200 million. (More...)
- In after-hours trading, Crocs' shares fell $4.79, or 26.9 percent, to $13 a share. (More...)
- Crocs expects to report actual fiscal 2008 first quarter results on or about May 7, 2008. (More...)
- CROX closed Monday's regular trading session at $17.79, down 16 cents or 0.89%. (More...)
- We do not undertake any obligation to update publicly any forward looking statement, including, without limitation, any estimate regarding revenues or earnings, whether as a result of the receipt of new information, future events, or otherwise. (More...)
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NIWOT, Colo. - (Business Wire) Crocs, Inc. (NASDAQ: CROX) today announced that, based upon preliminary performance results through March 31, 2008, it expects its first quarter 2008 revenue to be in the approximate range of $195 million to $200 million and expects a loss per diluted share in the range of ($0.05) to $0.00, both of which are below its previous guidance of expected revenues of $225 million and expected diluted earnings per share of $0.46 established in February. Crocs lowered its outlook for the fiscal year ending December 31, 2008. The Company also announced it has made the strategic decision to close its Canadian manufacturing operations in order to consolidate its production at its lower cost Company-owned and third-party facilities. [1] The Company ' s expected loss per diluted share in the range of ($0.05) to $0.00, includes a portion of the one-time, pre-tax charge associated with the shutdown of the Company ' s Canadian manufacturing operations equaling approximately $16 million, or $0.13 per diluted share. Excluding this charge, the Company expects first quarter 2008 diluted earnings per share in the range of $0.08 to $0.13. Based on its lower revenue expectations for the first quarter, the Company now expects inventories as of March 31, 2008 to increase approximately 5% to 10% as compared to December 31, 2007.[1] For fiscal 2008, revenues are now expected to increase between 15% and 20% over 2007 with diluted earnings per share in the range of approximately $1.54 to $1.64, including the total one-time, pre-tax charge of approximately $20 million, or $0.16 per diluted share associated with the shutdown of the Company'''s Canadian manufacturing operations. The Board of Directors approved an authorization to repurchase up to an additional 5 million shares of its common stock, effective following the earnings announcement currently expected on or about May 7, 2008.[2] Analysts, on average, expect the company to earn $2.63 per share on revenues of $1.15 billion for the fiscal year. Crocs said that its Board of Directors approved an authorization to buyback up to an additional 5 million shares of its common stock, effective following the earnings announcement currently expected on or about May 7, 2008. The company noted that this authorization is in addition to the previously announced share repurchase authorization. The repurchase authorization does not have an expiration date and does not obligate Crocs to acquire any particular amount of shares of its common stock. Crocs stated that it has made the strategic decision to close its Canadian manufacturing operations in order to consolidate its production at the lower cost company-owned and third party facilities. The company further noted that it was necessary to improve its cost structure going forward. Crocs said that over the near term the company is taking steps to maximize profitability without compromising the long-term potential of the brand, which includes initiating cost cutting measures, delaying certain infrastructure investments and continuing to drive to low cost manufacturing locations as well as increasing its share repurchase program.[3]
The company's recent earning outlook included a portion of the one-time, pre-tax charge associated with the shutdown of the company's Canadian manufacturing operation equaling nearly $16 million or $0.13 per share. Excluding this one-time charge, the company targets to report earnings of $0.08 - $0.13 per share. The company also lowered its revenue outlook to range between $195 million and $200 million from its prior expectation of $225 million.[3] Wall Street analysts, on average, anticipate the company to report earnings of $0.79 per share on revenues of $321.20 million for the second quarter. For the fiscal year 2008, the company now expects earnings to be $1.54 - $1.64 per share including one-time, pre-tax charges, compared to its previous outlook of $2.70 per share.[3]
Excluding charges, the Company expects first quarter 2008 diluted earnings per share in the range of $0.08 to $0.13. Based on its lower revenue expectations for the first quarter, the Company now expects inventories as of March 31, 2008 to increase approximately 5% to 10% as compared to December 31, 2007.[2] Crocs expects full year 2008 diluted earnings per share in the range of $1.70 and $1.80, excluding charges, versus the consensus of $2.63. To soften the blow to shareholders, Crocs' board of Directors approved an authorization to repurchase up to an additional 5 million shares of its common stock.[2] Excluding the charge, fiscal 2008 diluted earnings per share are expected to be between $1.70 and $1.80. The Board of Directors approved an authorization to repurchase up to an additional 5 million shares of its common stock, effective following the earnings announcement currently expected on or about May 7, 2008. This is in addition to the previously announced share repurchase authorization. Share repurchases under this authorization may be made in the open market or in privately negotiated transactions.[1]
For the fiscal second quarter, Crocs expects diluted earnings per share between 42 cents and 47 cents per share, or 45 cents to 50 cents per share excluding a 3-cent charge for shutting down Canadian manufacturing.[4] The company now expects a loss of 5 cents to break-even earnings per shares in the fiscal first quarter, from previous guidance of 46 cents per share. Excluding a charge related to closing its Canadian manufacturing operations, it predicts net income of 8 cents to 13 cents per share.[4] The stock closed Monday at $17.79 a share. Crocs expects results ranging from a loss of 5 cents to break-even, sharply lower than its previous guidance of 46 cents per share. Excluding a charge related to closing its Canadian manufacturing operations, it predicts net income of 8 cents to 13 cents.[5]
The bottom-line projection includes a charge of $16 million, or $0.13 per share, related to the shutdown of Canadian manufacturing operations. Excluding this charge, the company predicted a first-quarter profit between $0.08 and $0.13 per share.[6] Excluding the one-time charge of $16 million, or 13 cents a share, for the closure of the company's Canadian manufacturing operations, per-share earnings are forecast at 8 cents to 13 cents.[7]
"In addition, because of our current expense structure, a shortfall in sales versus our expectations disproportionately impacts our earnings results." He said Crocs 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.[5]
The Niwot, Colorado-based company sees first-quarter revenues in the range of $195 million to $200 million versus an earlier outlook of $225 million, below the average Wall Street expectation of $223.3 million. To cut costs, Crocs decided to shutter its Canadian manufacturing operations and consolidate production at lower-cost, company-owned and third-party facilities.[8] Shares of Crocs (Nasdaq: CROX ) are down 29% in after-hours trading Monday after the company lowered their outlook for Q1, Q2 and the full year 2008. Crocs cited the challenging retail environment in the U.S. Crocs also said it will close its Canadian manufacturing operations in order to consolidate its production at its lower cost Company-owned and third-party facilities.[2]
LOS ANGELES (Reuters) - Crocs Inc (CROX.O: Quote, Profile, Research ), maker of the popular, brightly colored plastic shoes, slashed its earnings and sales outlook on Monday, citing fewer retail orders and costs from a Canadian factory closure, sending its shares down 27 percent. The fast-growing company, which warned of challenges in the U.S. marketplace, expects first-quarter results ranging from a loss of 5 cents to nil per share, versus its earlier forecast of earnings of 46 cents per share.[8] Following the news, the company's stock plummeted more than 26% in the after hours and is trading below the 52-week period trading range. The Niwot, Colorado-based Crocs now expects to report first quarter results between a loss of $0.05 per share and breakeven per share, compared to its previous outlook of $0.46 per share.[3]
Crocs expects second quarter 2008 diluted earnings per share in the range of $0.45 to $0.50, excluding charges, versus the consensus of $0.79.[2] Commenting the new guidance, Ron Snyder, president and CEO of Crocs, said in a statement, "The retail environment in the U.S. has become increasingly challenging as consumer spending and traffic levels have slowed." He continued, "In addition, because of our current expense structure, a shortfall in sales versus our expectations disproportionately impacts our earnings results." Looking further ahead, Crocs said its earnings for the second quarter would likely be between $0.42 and $0.47 per share.[6] Chief Executive Officer of Crocs, Ron Snyder stated, 'The retail environment in the U.S. has become increasingly challenging as consumer spending and traffic levels have slowed. In February 2008, Crocs reported that its net income of $38.3 million or $0.45 per share was higher than $20.8 million or $0.26 per share in the same quarter a year ago.[3]
For fiscal 2008, Crocs said it expected revenues will be 15 percent to 20 percent greater than the prior year, and diluted earnings per share of $1.54 to $1.64.[9] Previously, the company expected earnings of $0.46 per share and revenue of $225 million.[6] The company in February announced it was expecting first-quarter revenue of $225 million and earnings per share of 46 cents.[9] 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.[5] The Niwot, Colo., footwear designer now expects to range from a first-quarter loss of 5 cents a share to earnings of less than a penny a share on revenue of $195 million to $200 million.[7]
Wall Street experts expect earnings of $0.79 per share and revenue of $321.20 million for the second quarter.[6] On average, analysts polled by First Call/Thomson Financial project earnings of $0.45 per share on revenues of $223.30 million.[3] Analysts polled by First Call/Thomson Financial were looking for the company to earn $0.45 per share for the quarter on revenue of $223.3 million.[6]
For the second quarter, the company targets earnings of $0.42 - $0.47 per share, including a portion of the one-time, pre-tax charge.[3] For fiscal 2008, the company currently anticipates earnings of $1.54 to $1.64 per share and earnings, excluding one-time charges, of $1.70 to $1.80 per share.[6]
Analysts project earnings of $2.63 per share and revenue of $1.15 billion for the year.[6]
The company said it now predicts a first-quarter loss of up to 5 cents to zero earnings per share, down from an earlier forecast of earnings of 46 cents per share.[10] The news sent shares of Niwot-based Crocs shares tumbling 28 percent in late trading. Crocs also said it will close its Canadian manufacturing operations to reduce expenses, a move that will contribute to a first-quarter loss of as much as 5 cents a share, the company said in a statement.[11] Crocs sees a Q1 loss of ($0.05) to $0.00, or earnings of $0.08 to $0.13 excluding costs associated with shutdown of the Company's Canadian manufacturing operations, versus the consensus of $0.45.[2] The company blamed its forecast on the slowing U.S. economy and a one-time restructuring charge. The company also said it that has decided to close its Canadian manufacturing operations in order to consolidate its production at its lower cost company-owned and third-party facilities.[6]
European sales were expected to be 90 percent higher, Asia sales 75 percent greater and domestic sales up 13 percent. Crocs also announced Monday it will close its Canadian manufacturing operations to consolidate production at company-owned and third-party facilities.[9] Analysts polled by Thomson Financial predict a profit of 45 cents per share. Crocs said it is closing its Canadian manufacturing plant to consolidate production at lower-cost plants.[4]
Crocs Inc. cut its first-quarter forecast and lowered its outlook for the year based on worse-than-expected sales through March 31. Shares of the Niwot, Colo., shoemaker, which issued guidance after the close of regular trading, plunged 27% to $13 in after-hours trading after Crocs also said it would close its Canadian.[12] Crocs previously forecast profit of $2.70 a share on sales of $1.16 billion.[11]
The company previously forecast profit of 46 cents a share on revenue of $225 million.[11] Crocs had forecast first-quarter per-share earnings of 46 cents on revenue of $225 million.[7]
Crocs now expects revenue of $195 million to $200 million, below previous guidance of $225 million.[4] The Niwot-based manufacturer (NASDAQ: CROX), best known for making a colorful line of clog-like shoes, said that based on results through March 31, it expects revenue to be between $195 million and $200 million in the first quarter.[9] The company said revenues for the first quarter are expected to be approximately $91 million, lower than the company's prior guidance of $110 million.[2]
The Company ' s revised revenue expectations of $195 million to $200 million represents an increase of approximately 37% to 41% over the prior year, with domestic sales expected to increase 13%, European sales expected to increase approximately 90%, and Asia sales are expected to be up approximately 75%.[1] The revised forecast will translate into an increase of 37 percent to 41 percent in revenue over the previous first quarter, with domestic sales up 13 percent, European sales rising about 90 percent and Asian sales 75 percent higher, the company said.[5] Crocs Inc. on Monday cut its earnings forecast for the first quarter, an announcement that sent the company's stock falling by nearly 28 percent in after-hours trading.[9] NIWOT, Colo. Crocs Inc. on Monday lowered its first-quarter forecast, blaming fewer sales of its colorful funky footwear and costs related to the closure of a plant. Its stock fell sharply in after-hours trading.[5]
Crocs said today it may post a first-quarter loss and slashed annual earnings and sales forecasts, blaming sluggish consumer spending.[11]
"The retail environment in the U.S. has become increasingly challenging as consumer spending and traffic levels have slowed," said Ron Snyder, president and CEO of Crocs. The company said that even though it has lowered its revenue forecast for the quarter, the figures represent growth of 37 percent to 47 percent over the previous year.[9] The company's revenues forecast now calls for the top-line result to increase between 15% and 20% over 2007.[6]
During the quarter, the Company has revised the demobilization cost to $62.7 million from the estimate of $93.1 million recorded for the year ended November 30, 2007 as a result of the settlement of six of the major contracts. [2] The company said it now expects a loss for the quarter of $0.05 to $0.00 per share.[6] Non-GAAP EPS is expected to be between $0.16 and $0.18 per share.[2] Analysts, on average, expected earnings of 45 cents per share, according to Reuters Estimates.[8]
The company's share price, which closed down 16 cents to $17.95 Monday, declined by another $4.94 in after-hours trading. Crocs will report its complete first-quarter financials on May 7.[9] Shares in Crocs Inc. were halted at $17.79 at 4:43 p.m. EDT. The company fell 16 cents, or 0.9%, to $17.79 by the close of the regular session.[7]
The EPS includes a pre-tax charge of $20 million, or 16 cents a share, connected with the shutdown of the Canadian plant.[9] The company said it will take a one-time, pre-tax charge associated with the shutdown of about $16 million.[9]
The Company has reflected the $30.4 million reduction as a recovery in the current period's statement of operations, net of non-controlling interest of $15.2 million and future income tax expense of $4.0 million. As of April 11, 2008, NovaGold anticipates funding its planned activities for 2008 from available cash.[2]
The company did not expect to experience the level of at once business as originally expected because the retailers are planning more cautiously. The company expects its earnings results to be negatively impacted by the company's current expense structure and shortfall in sales.[3] Ron Snyder, company president and chief executive, said in a statement that traffic has slowed amid a difficult retail environment. "Retailers in general are planning more cautiously, and therefore, we did not experience the level of at once business we originally expected," he said.[4]
" While it was a difficult decision to close down our manufacturing facility we believe it was necessary in order to improve our cost structure going forward. We are maintaining our sales and marketing office and retail store in Quebec City and will be expanding our presence throughout the country including the opening of four additional Crocs branded stores this year [1] LOS ANGELES, April 14 (Reuters) - Shoe maker Crocs Inc (CROX.O: Quote, Profile, Research ) slashed its first-quarter outlook on Monday, citing lower projected revenue and costs associated with the closure of a Canadian factory.[10] NIWOT, Colo. -- Crocs. Inc., maker of the colorful plastic shoes, on Monday lowered its first-quarter earnings guidance sharply, due to the costs of closing a plant and a revenue shortfall.[4]
The firm's new revenue guidance calls for a figure between $195 million and $200 million. [6] For Q1, Crocs sees revenues of $195 million to $200, which compares to the consensus of $223.3 million.[2]
The maker of brightly colored resin clogs now expects revenue will be as low as $195 million for the quarter.[11] Revenues for the quarter surged to $224.8 million from $112.9 million in the corresponding quarter of the earlier year.[3] Revenues for the quarter ended February 29, 2008 were $1.7 million compared to $1.1 million in the corresponding period in 2007.[2]
Subsequent to the quarter end, the Company drew down an additional $6.0 million from the Bank of Nova Scotia credit facility for a total amount drawn down of $16.0 million.[2] On March 26, 2008, the Company completed the issuance of US$95.0 million of 5.5% convertible senior unsecured notes due May 1, 2015 for net proceeds of US$90.65 million and has subsequently repaid the $16.0 million drawn down on the credit facility and closed the line.[2]
At February 29, 2008, the Company had cash and cash equivalents of $13.8 million. Of this amount $10.2 million was designated for Galore Creek suspension related activities, including payment of other payables.[2]
In after-hours trading, Crocs' shares fell $4.79, or 26.9 percent, to $13 a share. [5] Crocs fell $5.04 to $12.75 at 5:21 p.m. in trading after the Nasdaq Stock Market had closed. The shoemaker has fallen 52 percent this year.[11]
The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements and other market conditions. The repurchase authorization does not have an expiration date and does not obligate Crocs to acquire any particular amount of shares of its common stock.[1] Crocs also authorized a share buyback program of 5 million shares, effective on or about May 7. "In light of the current marketplace, we believe it is prudent to adopt a more conservative outlook for the year and this is reflected in our updated guidance," Snyder said.[5] Mr. Snyder concluded, " We remain optimistic about our business as we continue to expand the breadth and depth of the Crocs brand around the globe. That said, in light of the current marketplace we believe it is prudent to adopt a more conservative outlook for the year and this is reflected in our updated guidance.[1]
Crocs expects to report actual fiscal 2008 first quarter results on or about May 7, 2008. [1] Crocs shoes have moved from fad to lifestyle item and the company experienced robust sales momentum since it began selling the shoes in late 2002.[8] The company's Board also authorized a share buyback program to repurchase up to 5 million additional shares.[3] Over the near-term we are taking steps to maximize profitability without compromising the long-term potential of the brand which include: initiating cost cutting measures, delaying certain infrastructure investments, and continuing to drive to low cost manufacturing locations as well as increasing our share repurchase program.[1]
CROX closed Monday's regular trading session at $17.79, down 16 cents or 0.89%. [3] During the Past 52-week period, the stock traded in the $15.42 - $75.21 range.[3]
We do not undertake any obligation to update publicly any forward looking statement, including, without limitation, any estimate regarding revenues or earnings, whether as a result of the receipt of new information, future events, or otherwise. [1]
SOURCES
1. Crocs, Inc. Lowers First Quarter and Full Year 2008 Sales and Earnings Per Share Guidance
2. StreetInsider.com
3. Crocs Slashes Q1 And FY08 Forecast; To Buy Back 5 Mln Additional Shares; Shares Plummet - Update [CROX] - RTTNews, Today's Top Stories, Global Newswires, ToDay's Top News,Global Business news .
4. Crocs Cuts 1st-Quarter Outlook | Chron.com - Houston Chronicle
5. Crocs lowers 1Q forecast
6. Crocs Lowers Guidance [CROX] - RTTNews, Today's Top Stories, Global Newswires, ToDay's Top News,Global Business news .
7. Crocs Inc. Lowers 1st Quarter, Full-Year 2008 Revenue And Earnings View - MarketWatch
8. Crocs slashes profit and sales outlook; shares drop | Reuters
9. Crocs reduces earnings forecast for quarter - Denver Business Journal:
10. Crocs slashes Q1 outlook, warns of possible loss | Industries | Consumer Goods & Retail | Reuters
11. Crocs earnings, forecast kicked lower : Retail : The Rocky Mountain News
12. Free Preview - WSJ.com
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