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Apr-16-2008

Crocs Shares Plummet on Slashed Guidance

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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. (More...)
Analysts had predicted a profit of $2.63 per share. (More...)
The revised forecast will translate into an increase of 37 per cent to 41 per cent in revenue over the previous first quarter, with domestic sales up 13 per cent, European sales rising about 90 per cent and Asian sales 75 per cent higher, the company said. (More...)
The cut in guidance likely was triggered in part by inventory problems. (More...)
Crocs said Monday it may post a first-quarter loss and slashed annual earnings and sales forecasts, blaming sluggish consumer spending. (More...)
The Niwot-based shoe manufacturer is shutting down operations due to the higher cost of manufacturing in Canada. (More...)
"The magnitude of the miss is the surprise here,'' said Jeff Mintz, a Los Angeles-based analyst with Wedbush Morgan Securities, which rates the company "strong buy.'' (More...)
Ben Shingler, The Canadian Press April 15, 2008 - 9:41 p.m. MONTREAL - Footwear maker Crocs Inc. (NASDAQ:CROX) will close its Quebec factory in July, ending 670 jobs at the plant that helped create the colourful foam clog sensation. (More...)
The last time the stock was less than $11 was March 22, 2006, when the adjusted closing was $10.81 a share. (More...)
"Canada has been and remains an important market for our company," said Ron Snyder, president and CEO of Crocs, in a Monday press release. (More...)
The company reported net income of $3.6 billion, for the first three months of the year, up from $2.57 billion a year ago. (More...)
A decent outlook for stabilization and upside seemed apparent in the buying interest we observed in June 35 calls, whose $4.20 premium reflects a 61% chance of the position remaining in the money heading into the summer. (More...)
Intel Corporation (Nasdaq: INTC ) reports Q1 EPS of $0.25, or $0.29 ex-items, 4 cents better than the analyst estimate of $0.25. (More...)
The shoes, which are sold through department and sporting goods stores as well as other retailers, range in price from $24.99 to $79.99. (More...)
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. (More...)
All Crocs ™ brand shoes feature Crocs ' proprietary closed-cell resin, Croslite ™, which represents a substantial innovation in footwear. (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] 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.[2]

For the second quarter of fiscal 2008, revenues are expected to increase between 10% and 15% over the corresponding period a year ago with diluted earnings per share in the range of $0.42 to $0.47, including a portion of the aforementioned one-time, pre-tax charge associated with shutdown of the Company ' s Canadian manufacturing operations equaling approximately $4 million, or $0.03 per diluted share. Excluding this charge, the Company expects second quarter 2008 diluted earnings per share in the range of $0.45 to $0.50.[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]

The company said it will take a $16 million U.S. charge to cover the cost of shutting down the Quebec City plant. Amid the weakening retail situation, Crocs cut its financial outlook for the first quarter and the full year. The company said it expects its first quarter revenue to be in the approximate range of $195 million to $200 million U.S., and it expects a report anywhere between breakeven and a loss of five cents per share.[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.[2] 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.[1] The earnings outlook includes a portion of one-time, pre-tax charge of about $4 million or $0.03 per share. This charge was taken as a result of the shutdown at the company's Canadian manufacturing operations. Excluding this charge, the company expects second-quarter earnings per share in the range of $0.45 to $0.50.[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.[5] 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.[5]

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.[6] The cut in guidance likely was triggered in part by inventory problems. Crocs last year had difficulty meeting demand, which probably led to stores over-ordering and ending up with high inventory levels, he said. Mintz added, international sales should keep the companys revenue growth in the double digits this year. JPMorgan analyst Robert Samuels said the announcement was "a stunning fall" that he believes represented a "significant mismanagement of expenses." "We stick by our belief that there is a place in the current footwear market for Crocs as a brand but would recommend staying on the sidelines until macro pressures, inventory issues and record short interest play out," he wrote to clients. It is a difficult setback for the 6-year-old company that sells a colorful variety of shoes made of a proprietary closed-cell resin material and featuring holes scattered across the top and around the toe. After the market closed Monday, Crocs lowered its first-quarter forecast to a range of a loss of 5 cents to break-even earnings per share, down from previous guidance of 46 cents per share.[7] Late Monday, Crocs said it expects first-quarter revenue to be in the range of $195.0 million to $200.0 million, with a per share loss of up to 5 cents. That's a sharp turn from February, when it said it expected sales of $225.0 million and earnings of 46 cents.[8]

Analysts polled by Thomson Financial expect earnings, on average, of $2.63 for 2008 and $3.19 for 2009. Duffy said Crocs' earnings would suffer throughout the year as it struggles to meet sales targets and makes structural changes to its business model. The company faces a "long and painful process," he said. Separately, JPMorgan analyst Robert Samuels lowered his own 2008 outlook to $1.70 per share from $2.59. Samuels said the company could fall even more if its sales turn negative, but maintained his "Neutral" rating, adding that the stock still "looks cheap."[9] 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.[2]

Crocs is scheduled to report first-quarter earnings on May 7. Shortly after Crocs reported its new guidance, Thomas Weisel analyst Jim Duffy downgraded the company to "Market Weight" from "Overweight." He also slashed his 2008 earnings estimate 37 percent to $1.70 per share from $2.70. For 2009, he cut his outlook by more than half to $1.50 per share from $3.25.[9] 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.[4] 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.[2]

"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.[10]

QUEBEC - Crocs, the maker of the namesake colourful footwear, is closing its only Canadian plant, citing the endless winter and a slowdown in consumer spending. The chief executive officer of the Colorado-based company, Ronald Snyder, said Tuesday that the "challenging retail environment" prompted Crocs to lower its sales forecast, cutting hundreds of jobs at its Quebec City plant to cut expenses.[11] GATINEAU, Que. - Media giant Quebecor Inc. (TSX:QBR.B) says the rules that govern Canadian television no longer make sense and have wildly distorted the market, helping the strong and punishing the weak. Executives of the Montreal-based conglomerate, whose media holdings embrace broadcasting, cable TV and newspapers, testified Tuesday before the federal regulator on the future of Canadian television, calling for a relaxation of the 400 rules and regulations that they contend were designed for a world that no longer exists. QUEBEC - Shares of U.S.-based shoe maker Crocs Inc. were pounded in trading Tuesday after the Colorado company lowered its first-quarter forecast, blaming fewer sales of its colourful funky footwear and costs related to the shutdown of a Quebec plant, with the loss of 670 jobs.[12] The central bank's board is composed of 12 members, most outside directors from across the country with a responsibility of overseeing the bank's operations. QUEBEC - Footwear maker Crocs Inc. announced it will close its Quebec factory in July, putting 670 people out of work as the company moves production to Mexico. Shares of the Colorado-based company were pounded in Tuesday trading after it lowered first-quarter forecasts, blaming fewer sales of its colourful, funky shoes and costs related to the shutdown of the plant.[12]

On the New York Stock Exchange, Crocs shares fell $7.25 to US$10.54, a drop of 40 per cent in trading of 31.3 million shares. Late Monday, the company (NYSE:CROX) announced lower forecasts amid a tough market environment and said it will close the Quebec plant and move its production work to Mexico.[13]

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.[2] Today, the Crocs critics are crowing as the stock is again in a free fall. Shares of Crocs are down nearly 40 percent in morning trading after the company late on Monday lowered its sales and earnings forecasts for the first quarter and the year. The company is also closing its Canadian factory.[14] The stock for Colorado company, Crocs, Inc. fell the most ever in its history Tuesday in Nasdaq trading. The value of Croc stock dropped 43% since Monday when the company announced its first quarter sales were not what they expected, and they say the rest of the year isn't looking so good either. The company will also close its Canadian manufacturing plant and fire nearly 700 employees.[15] In the past 52 weeks, it has traded between $15.42 a share and $75.21 a share. Although its Canadian manufacturing plant will close, Crocs will keep open its sales and marketing office and retail store in Quebec City. It will also open four additional Crocs branded stores this year. The company said 262 people had already been laid off and the rest will lose their positions by the end of July.[16] "In addition, because of our current expense structure, a shortfall in sales versus our expectations disproportionately impacts our earnings results." Although its Canadian manufacturing plant will close, Crocs will keep open its sales and marketing office and retail store in Quebec City. It will also open four additional Crocs branded stores this year.[13]

Analysts had predicted a profit of $2.63 per share. Company spokeswoman Tia Mattson said they expect to close the plant in Quebec City, Canada, by July but will retain 100 employees at sales offices and a retail store. Production will be shifted to lower-cost plants capable of higher capacity in Mexico, Brazil, China, Vietnam, Bosnia, Italy and Romania, she said. [7] Shares of the Colorado-based company were pounded in Tuesday trading after it lowered first-quarter forecasts, blaming fewer sales of the funky shoes and costs related to the shutdown of the plant. The company will shift Quebec City production to Mexico but will keep open its sales and marketing office and retail store in the city.[17]

Crocs Inc., maker of space-age footwear, was down 27% in premarket trading after the company late Monday cut its first-quarter forecast and lowered its outlook for the year, due to worse-than-expected sales through March 31. The company also said it would close its Canadian manufacturing operations to consolidate its production at its lower-cost company-owned and third-party facilities.[18] 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.[19]

Shares of Crocs fell $4.83, or 27.2 percent, to $12.96 in premarket trading. Late Monday, Crocs, based in Niwot, Colo., slashed its first-quarter outlook, blaming slower sales and expenses related to the closure of its Canadian manufacturing plant.[9] Shares of Niwot, Colo. -based Crocs fell by $7.68 in Tuesday trading, closing at $10.11, an all-time closing low, adjusted for dividends and splits. Inventories at March 31 are estimated to be up 5 percent to 10 percent versus those for the three months ended Dec. 31, the company said. Crocs also said it decided to close its Canadian manufacturing operations.[20] 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.[21]

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.[6] "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," Snyder said. Crocs cut its first-quarter revenue estimate to between $195 million and $200 million, from previous guidance of $225 million.[16]

Analysts polled by Thomson Financial had predicted a profit of 45 cents per share. Crocs cut its first-quarter revenue estimate to $195 million to $200 million, from its previous guidance of $225 million.[13] The company in February announced it was expecting first-quarter revenue of $225 million and earnings per share of 46 cents.[10] Previously, the company expected earnings of $2.70 per share and revenue of about $1.16 billion. The company's board 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.[4] 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]

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.[22] 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.[4] The company based in Niwot, north of Denver, says fiscal first-quarter results should range from a loss of 5 cents to break-even. That compares with 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.[23] "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." Crocs expects results ranging from a loss of five 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 eight cents to 13 cents.[13]

The new lower guidance that Crocs introduced last night is cruel. The freefalling footwear company will earn just $0.08 to $0.15 a share in this year's first quarter, and that's before charges related to closing down a manufacturing plant in Canada.[24] Northrup Grumman ( NOC ) ''' Aerospace companies continued to make an impression on our market scanners, Delta-Northwest news notwithstanding. Shares in Northrup Grumman, which recently pipped Boeing for a rich Pentagon defense contract, underwent a reversal of fortunes today, losing 6% of their value to read $72.00 ''' barely $1 above the 52-week low. The company is moving on a couple of conspicuously bearish news items this afternoon ''' first news that EADS, which partnered with Northrop Grumman to win the Air Force/Pentagon contract, is being invested by market regulators in France over suspected insider sales; and second, and more pertinently, the company'''s own announcement that it may charge off as much as $360 million for the first quarter of the year due to delays on an amphibious assault ship.[25]

WaMu, as the Seattle-based lender is called, said the quarterly loss equaled $1.40 per share, and compared with profit of $784 million, or 86 cents, in the first quarter last year. Profits Are Up 1,056.2% for This Wisconsin Company Commodities are on a tear - and so is mining equipment. This "pick-and-shovel" company has already sold out two-thirds of its equipment for 2008.[26] 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.[4] On average, analysts polled by First Call/Thomson Financial project earnings of $0.45 per share on revenues of $223.30 million.[2]

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.[10] Analysts project earnings of $2.63 per share and revenue of $1.15 billion for the year.[4]

Wall Street experts expect earnings of $0.79 per share and revenue of $321.20 million for the second quarter.[4] 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.[22] Late Monday the shoemaker slashed its first quarter forecast from a profit of 46 cents a share on revenue of $225 million to a loss of as much as five cents a share on revenue of a range of $195 million to $200 million.[11] The company previously forecast profit of 46 cents a share on revenue of $225 million.[27] The banking company's outlook was better than expected, and its limited exposure to the subprime lending market has helped it avoid the troubles other banks have experienced. Affymetrix Inc. was down 28% after the systems developer cut its fiscal-year revenue guidance by about 3%, due to expected lower research spending by pharmaceutical and industrial customers. The company now expects revenue of $490 million to $510 million, down from its previous forecast of $505 million to $525 million. Shares of Forest Laboratories fell 8.3% in premarket action, after the company swung to a profit, but the drug maker said it expects results for this year to fall short of analyst expectations.[18]

The company said it would close a factory in Canada, taking a one-time charge of $20 million. It lowered its fiscal year guidance to a range of $1.54 to $1.64 per share, which would represent growth of 15% to 20% over 2007.[28] Production will be shifted to lower-cost plants capable of higher capacity in Mexico, Brazil, China, Vietnam, Bosnia, Italy and Romania, a company spokeswoman said. It lowered its fiscal year guidance to a range of $1.54 to $1.64 per share, which would represent growth of 15.0% to 20.0% over 2007.[8]

The company guided for a first-quarter per-share loss in the range of 5 cents to break even with the prior year, including certain charges. That's well below a prior guidance for earnings per share of 46 cents.[20] For the fiscal second quarter, Crocs expects diluted earnings per share between 42 cents and 47 cents, or 45 cents to 50 cents, excluding a three-cent charge for closing the Canadian plant.[13] 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.[5]

J.P. Morgan analyst Robert Samuels called Crocs' lowered guidance -- which predicts a possible loss of up to 5 cents per share in the first quarter from an earlier view of 46 cents profit -- "stunning."[29] LOS ANGELES (Reuters) - Shares of Crocs Inc (CROX.O: Quote, Profile, Research ) plummeted over 40 percent on Tuesday, a day after the maker of brightly colored plastic shoes slashed its sales and earnings projections for the first quarter and year, in what one analyst dubbed a "stunning fall." At least one Wall Street brokerage, Wedbush Morgan, downgraded its shares to "hold" from "strong buy" with analyst Jeff Mintz citing reduced retail demand for the product.[29] NEW YORK -- Shares of Crocs Inc. plunged 43 percent Tuesday after the firm slashed its financial guidance for the first quarter, based, in part, on weak domestic sales.[20]

Crocs, based in Niwot, Colorado, fell $7.68, or 43 percent, to $10.11 at 4 p.m. New York time in Nasdaq Stock Market trading, the biggest decline and lowest value since the shares were first sold to the public in February 2006. The stock has plunged 73 percent this year, losing all of the gains made in 2007.[30] Shares of Crocs tumbled $5.19 in after-hours trading after closing down 16 cents at $17.79 in the regular session. Crocs almost tripled in its first year of trading on the Nasdaq Stock Market.[31]

Because of our current expense structure, a shortfall in sales versus our expectations disproportionately impacts our earnings results." Crocs also said its board authorized a stock buyback covering up to an additional 5 million shares. Know What You Own : CROX operates in the apparel and footwear industry, and some of the other stocks in its field include Deckers Outdoor DECK, Nike NKE and Timberland TBL. These stocks were recently trading at $109.14, -2.06%, $65.94, -0.18% and $13.12, -1.58% respectively.[32] Crocs shares were off $7.68, to $10.11, on Tuesday. To support its stock, the Crocs (nasdaq: CROX - news - people ) board approved a move to repurchase 5 million shares after its next earnings announcement on May 7.[8]

Shares in the U.S.-based company hit a new 52-week low yesterday, plunging 43 per cent to close at $10.11 U.S. on the Nasdaq Stock Market.[33] In February, the company said it was expecting revenues of $225 million U.S. and a profit of 46 cents per diluted share.[3]

Crocs announced Monday after the close of the stock market that it now expects first-quarter revenues of $195 million to $200 million, down from a prior guidance for $225 million. The company cited weaker-than-expected domestic business due to the soft economy and cooler-than-usual weather that has impacted its sandal business.[20] "We are trying to grow our presence in Canada," Mattson said. "It's just that the cost of creating shoes in Canada is not beneficial to our bottom line right now." Crocs cut its first-quarter revenue estimate to $195 million to $200 million, from its previous guidance of $225 million.[34] Crocs, based in Niwot about 30 miles (48 kilometers) north of Denver, estimated first-quarter revenue from $195 million (123.2 million) to $200 million (126.36 million), below previous guidance of $225 million.[7]

Crocs had forecast first-quarter per-share earnings of 46 cents on revenue of $225 million.[22] Existing users, please login at the top of the page. Summary: The retail downturn in the U.S. has prompted footwear company Crocs to downgrade its revenue and earnings forecasts, and to close the company's Canadian manufacturing operations.[35] Revenues are expected to hit $195-200 million for the quarter, down about 15% from a previous forecast of $225 million. The company also announced the shutdown of its Canadian manufacturing operations, a move the firm thinks may result in as much as a 5-cent-per-share loss for the quarter.[36]

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.[4] 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.[37]

Crocs aren't hip anymore - news that may make you ecstatic or depressed, depending on your fashion sense - and workers at a Quebec City factory are paying the price. The namesake shoe of Colorado-based Crocs Inc. isn't bringing in the same rush of people as in their peak in 2004, forcing the company to ship its Canadian manufacturing south to Mexico after less than six years in operation, putting more than 600 employees out of work. It only took two years for the company to go from the largest footwear IPO in history to back-of-the-closet obscurity.[38]

"Colder-than-normal temperatures across much of the U.S. have delayed the start to the spring season.'' The company will close its Quebec City facility and move production to one of seven lower-cost plants. Crocs said today that 262 people were dismissed, while 407 will lose their jobs by the end of July. Slowing sales this year may signal the fad for the skid-resistant, foam-like shoes is ending, analysts said.[30] "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," Snyder told investors and analysts. Snyder stressed that Canada remains an important market for the company and added it plans to open four more Crocs stores this year. In February, Crocs laid off about 260 workers at its Quebec plant. Another 410 will lose their jobs in July at the latest, bringing the total number of layoffs to 670.[11] "We've been bringing that facility up. for the last 2 1/2 or so years, bringing in more capabilities," Snyder told analysts. He said it makes sense to consolidate all manufacturing in North America in a lower-cost factory capable of producing both sewn and moulded products as well as compounding its own raw materials. "That's a very vertically integrated factory, where the Canadian facility didn't have all of those capabilities," Snyder said. Quebec has been hit hard by the high Canadian dollar, which has squeezed its exports, as well as troubles in the lumber industry, which have led to closures of mills and factories, with the loss of thousands of jobs. Last month, The Men's Wearhouse Inc. (NYSE:MW), a U.S. specialty clothing company that owns 116 Moores stores in Canada, announced it will eliminate 540 jobs as it closes its manufacturing plant in Montreal this July.[13]

The company also will close a manufacturing plant in Quebec City, Canada, eliminating 600 jobs, reduce discretionary spending and the use of airfreight and delay unnecessary infrastructure spending, Chief Executive Officer Ron Snyder said Tuesday. "The shortfall in our top line was primarily attributable to weaker-than-expected domestic sales due to the challenging retail environment," he told analysts during a conference call.[7] "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." The company will maintain a sales and marketing office and retail store in Quebec City and plans to open four more Crocs-branded stores in Canada this year.[20] " 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]

Shares of Niwot, Colo. -based Crocs tumbled more than 29% in extended trading after the earnings report was released. The shoemaker will close its Quebec City factory to reduce expenses, spokeswoman Tia Mattson said. About 100 sales and marketing positions will remain in the region, where Crocs plans to continue retail expansion, she said.[31]

DENVER (AP) - Shares of Niwot (NY'-waht)-based Crocs Incorporated plummeted 41% today after the company lowered earnings forecasts amid sluggish sales. That's prompting some analysts to wonder whether consumers are getting tired of the shoe maker's colorful plastic clogs.[39] NEW YORK -- Shares of Crocs Inc. plunged in premarket trading Tuesday after the casual footwear company lowered its first-quarter profit forecast, prompting a downgrade and lowered outlooks from analysts.[9] 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.[10] 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.[22] Shares of Crocs Inc. ( CROX ) dropped 43% yesterday (Tuesday) with a $7.68 decline to close at $10.11 after the Niwot, Colorado-based colorful shoemaker lowered its profit guidance and announced it would eliminate 600 jobs at a Canada plant.[26]

QUEBEC CITY, April 14 /CNW Telbec/ - Crocs Inc. president and CEO Ron Snyder has announced that the company is ceasing production of shoes in Canada and closing its only Canadian plant, located in Quebec City. "This type of decision is always hard to make because it affects the lives of people who have contributed to our company's success.[40] Snyder said the Canadian production will be moved to lower-cost plants in Mexico, Brazil, China and Romania. He added the company will maintain its Canadian Crocs boutiques and about 100 sales and marketing jobs in Quebec City.[11] In a statement, Crocs President and Chief Executive Officer Ron Snyder said to remain competitive, the company's best strategy is to consolidate production at seven lower-cost facilities in Bosnia, Brazil, China, Italy, Mexico, Romania or Vietnam. The statement said of the 669 employees at the Quebec City plant, 262 have already been laid off and the remaining 407 will lose their positions by the end of July. "This type of decision is always hard to make because it affects the lives of people who have contributed to our company's success," Snyder said.[41]

"The retail environment in the U.S. has become increasingly challenging as consumer spending and traffic levels have slowed," Ron Snyder, Crocs president and chief executive, said in a statement. The company is closing its Canadian factory in July and laying off about 600 workers there, said Crocs spokeswoman Tia Mattson. "In closing that facility, we are shifting production to higher-capacity, lower-cost facilities," she said.[42] "The retail environment in the U.S. has become increasingly challenging as consumer spending and traffic levels have slowed," said Crocs CEO Ron Snyder. According to the March retail report from the U.S. Department of Commerce, clothing and clothing accessories stores suffered a 1.6% decline in sales this March over March 2007.[28]

April 14 (Bloomberg) -- Crocs Inc., the maker of the namesake colorful clogs, said it will fire its 600 Canadian plant workers after lowering annual earnings and sales forecasts as consumer spending slowed.[27] April 15 (Bloomberg) -- Crocs Inc., the maker of the namesake colorful clogs with holes, fell the most ever in Nasdaq trading after the company lowered its sales forecast and said it would fire 669 Canadian plant workers as retailers reduce orders.[30]

Crocs Inc., the maker of the colourful plastic clogs, has stumbled again after the company said it would miss its own sales and profit forecast this quarter and will shut a plant in Quebec to cut costs.[33]

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.[10] Crocs fell $5.07 to $12.72 at 7:49 p.m. in trading after the Nasdaq Stock Market had closed. The shoemaker has fallen 52 percent this year. Critics have dismissed the company's initial success as a fad, lumping Crocs in with companies such as Heely's Inc., the maker of wheeled shoes.[27] In the last six months, shares of Crocs have fallen 12 percent or more on more than a handful of occasions. The stock made its debut on the Nasdaq market at $21 in February 2006. It nearly tripled that year. This morning, it is trading at $10.62, down 85 percent from October.[14]

Snyder added that revenues of $195-200 million would still represent a 37-41% increase over the year-ago period. After a long stretch of increases the company has posted over the years, the stock market is feeling less than confident in Crocs this time around.[36] 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 company said it expects first-quarter revenue to range from $195 million to $200 million, down from previous estimates of around $225 million.[42] For the first quarter, Crocs expects revenue of $195 million to $200 million.[32] 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.[10]

The revised forecast will translate into an increase of 37 per cent to 41 per cent in revenue over the previous first quarter, with domestic sales up 13 per cent, European sales rising about 90 per cent and Asian sales 75 per cent higher, the company said. [13] The revised forecast will translate into an increase of 37 percent to 41 percent in revenue during 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.[34]

The cut in guidance likely was triggered in part by inventory problems. Crocs last year had difficulty meeting demand, which probably led to stores over-ordering and ending up with high inventory levels, he said. Mintz added, international sales should keep the company's revenue growth in the double digits this year. JPMorgan analyst Robert Samuels said the announcement was "a stunning fall" that he believes represented a "significant mismanagement of expenses." "We stick by our belief that there is a place in the current footwear market for Crocs as a brand but would recommend staying on the sidelines until macro pressures, inventory issues and record short interest play out," he wrote to clients. It is a difficult setback for the six-year-old company that sells a colourful variety of shoes made of a proprietary closed-cell resin material and featuring holes scattered across the top and around the toe. [16] Annual net income will be no more than $1.64 a share, missing an earlier projection of $2.70, Crocs said. Sales will be at most $1.02 billion this year, compared with a previous forecast of $1.16 billion.[27] As for the full year, Crocs believes it will earn $1.70 to $1.80 a share, excluding the effects of the charge, with revenue up 15% to 20% over 2007.[32] 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.[13] 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.[2] 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.[4]

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.[43] The company said it now expects a loss for the quarter of $0.05 to $0.00 per share.[4]

The New Brunswick, N.J. -based maker of contraceptives, medical devices, baby care items and prescription drugs reported net income of US$3.6 billion, or $1.26 per share, for the first three months of the year, up from $2.57 billion, or 88 cents a share, a year ago.[12] First-quarter net income declined to $1.44 billion, or 25 cents per share, from $1.64 billion, or 28 cents, the year prior, the Santa Clara, California-based chipmaker announced in a statement.[26] The Minneapolis-based bank said it earned $1.09 billion, or 62 cents per share, down from $1.13 billion, or 63 cents per share, during the same period last year.[26]

The EPS includes a pre-tax charge of $20 million, or 16 cents a share, connected with the shutdown of the Canadian plant.[10] The shutdown of the company's only Canadian plant will contribute to a first-quarter loss of as much as 5 cents a share, Crocs said.[30]

The current quarter, not to mention the year, aren't going to make up for the first-quarter hiccup. The outlook is "frankly stunning," in the words of JPMorgan, which said it will give Crocs bears - and they are legion - evidence that the brand "is over." (JP actually said maybe that's too harsh an assessment.) The selloff has spread to Deckers Outdoor (DECK), another maker of acquired-taste footwear - in this case, boots that you can't wear in the cold or in foul weather - whose shares have slid about five percent. The worst-kept secret in the annals of corporate mergers has come to pass, as Delta Air Lines (DAL) and Northwest Airlines (NWA) said they're going to be canceling flights, losing luggage and elimanating your frequent-flyier miles as a combined entity. They can also collectively pay ridiculous prices for jet fuel as one. Both are on the move to the upside, with Delta ahead five percent, while Northwest, which is effectively being taken over in the all-stock deal at a 17% premium to its Monday's close, ahead 10%. All this likely gives the rest of the legacy carriers a stronger motivation to find a dance partner.[44] Shares of Niwot-based Crocs closed Monday at $17.79 but plummeted nearly 27 percent in after-hours trading.[42] The shares got slammed on the news. They traded as low as $10.30 this morning, but I'm not going to make the value argument that Crocs is trading at just six times its bottom-line guidance. At this point, I'll hold on to my shares for now.[24]

On the New York Stock Exchange, Crocs stock fell $7.29, or 40.9 per cent, to US$10.50 in heavy Thursday trading.[16]

Today's fall may have finally shaken the faith of the true believers in the stock. "If things deteriorated this quickly in less than two months -- when Crocs was hopeful of earning $2.70 a share in 2008 -- how can we take it on its word over the next three quarters?," says Rick Aristotle Munarriz on the Motley Fool.[14] To be sure, there'''s something about the immediate 41% drop in Crocs share price to $10.47 that smacks of a pent-up desire to sell the stock.[25]

Chief executive Ron Snyder blamed '''the challenging retail environment''' in the United States, but some analysts believe the fad that drove Crocs shares to a high of $74 six months ago may be over.[33] In a conference call with analysts, Ron Snyder, president and CEO of the company, blamed a "challenging retail environment" and colder-than-expected temperatures across the U.S., which delayed the spring season. The latter has "impacted sales of sandal and other open-toed footwear throughout the industry."[36] Colder weather and the closure of the company's Canadian factory were also expected to crimp profit. Reduced store traffic in U.S. stores, together with fewer retail orders, have cut into the footwear maker's sales, given what Snyder called the "impulse buy" nature of his company's shoes.[29]

Mattson did not have any details about severance packages for the Canadian factory workers. She said they were notified, and the company is taking a "proactive approach." Despite closing its manufacturing operations, Crocs plans to maintain a sales and marketing office and wants to "grow its retail presence" north of the border, according to Mattson.[34] 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.[10] Updated from 4/14/08 Crocs CROX, the Niwot, Colo., sandals maker, slashed its estimates for the first quarter and 2008, citing a slowdown in consumer spending. Crocs said it will close its Canadian manufacturing operations in order to consolidate its production at lower-cost company-owned and third-party facilities.[32]

Footwear maker Crocs Inc. is closing a manufacturing plant in Quebec City, putting 669 people out of work, as the company moves production to cheaper areas. The company, which is based in Niwot, Colo., said late Monday that the closure comes amid reduced demand for its products.[3] NIWOT- Crocs Inc. is closing its manufacturing plant in Quebec City, Canada resulting in approximately 600 employees being laid off.[34]

Crocs blamed lower sales, plus expenses related to the closure of a Canadian manufacturing plant, for the lowered guidance.[39]

Crocs Inc. lowered its first-quarter and full-year outlook Monday, blaming decreased retail sales and costs related to the closure of its original production facility in Canada.[42] 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.[43] Resin shoemaker Crocs Inc. announced Tuesday its Canadian factory in Quebec City will close this summer because of high production costs.[41] Raymond Bachand accused Crocs of being interested only in the cosmetic benefits of shutting down a factory. "Crocs Quebec represents about four per cent of their worldwide production," he said Tuesday in Quebec City. "They wanted to give the markets a signal that they were doing something since they're flush in Quebec."[17]

Investors reacted to the weaker outlook by sending shares of Crocs down 43 per cent on Nasdaq.[3] Analysts, on average, expected earnings of 45 cents per share, according to Reuters Estimates.[6] Analysts polled by Thomson Financial had predicted a profit of 45 cents per share.[39]

Analysts estimated the company would earn 45 cents a share in the first quarter.[42] The company now expects to lose as much as five cents a share for the first quarter.[18]

On average, analysts surveyed by Thomson Financial are looking for earnings of 45 cents in the first quarter, 79 cents in the second quarter and $2.63 for the year.[32] April 15, 2008 By Eric Newman Wall Street is all fired up about another earnings report from Crocs, the maker of popular lightweight plastic shoes, but this time it's not because of good news. Crocs, Niwot, Colo., has revised its earnings guidance for the first quarter of 2008, based on preliminary results through March 31.[36]

Investors in Crocs bit back Tuesday, hammering the stock down 41.1% in early afternoon trading after the company slashed its earnings guidance.[28] Crocs watched Tuesday as investors took a whopping 43.2% bite out of its stock after the company fell short at explaining its retail woes. The of shoes with holes in them tried to blame poor earnings expectations on wet, cold weather, but investors weren't taking the bait.[8]

Crocs said Monday it may post a first-quarter loss and slashed annual earnings and sales forecasts, blaming sluggish consumer spending. [21] Sluggish consumer spending has prompted retailers to slow orders of Crocs shoes, hurting sales.[27]

The shoes, which are sold through department and sporting goods stores as well as other retailers, range in price from $24.99 to $79.99. Crocs sells shoes in about 90 countries and gets about half of its sales from overseas.[27] CEO Snyder said on the call today that the company will ask the full commission to overrule the judge. Crocs sells shoes in about 90 countries and gets about half of its sales from overseas.[30] CROX ''' For traders who have portended the waning appeal of synthetic clog maker Crocs, today'''s lowering of the company'''s Q1 forecast on lower sales simply states a truth long deferred for the trend shoe ''' namely, that Crocs are a fad and that fads tend to fall by the wayside.[25] In the past six months, Crocs has dropped 12 percent or more six times on a daily basis as the company has posted sales and profit forecasts that have disappointed investors.[27]

Crocs will, however, keep some one hundred sales and marketing staff. Despite this sad decision, Canada remains a large market for Crocs Inc. The company is currently expanding its store on Rue St-Jean in Québec City from 1,200 to 2,000 square feet, and a number of new stores will be opened in Canada by the end of 2008. This decision in no way affects the distribution network for Crocs products in Canada.[40] The company will keep about 100 sales and marketing staff in Quebec City and has plans to expand some existing stores and open new ones in Canada, the statement said.[41]

Production from the Quebec City plant will move to plants in Mexico, Brazil, China and Romania, while about 100 sales and marketing jobs will remain in the city, a company spokeswoman told Bloomberg.[3]

The company said it would close a factory in Quebec City, taking a one-time charge of $20 million.[8] The company said it will take a one-time, pre-tax charge associated with the shutdown of about $16 million.[10]

The company previously forecast revenue of $225 million. "A miss of this magnitude represents a significant mismanagement of expenses,'' Samuels said.[30] The firm's new revenue guidance calls for a figure between $195 million and $200 million.[4]

The company's new guidance of $1.70 to $1.80 a share for all of 2008 is also well below the $2.70 a share Wall Street target.[24] At 11 a.m. EST on Tuesday, the company's share price had fallen by $7.36, or about a 41% drop in value. Some analysts feel it's premature to view the decline as a long-term trend. "I don't think it's the brand necessarily," said John Shanley, an analyst at Susquehanna Financial Group, New York.[36]

April 30 calls sold off for around $3.80, while fresh positions were entered at the higher May 35 call strike for around $1.75. Despite the fact that shares in the company have lost more than a third of their value this year alone, option traders hold twice as many call positions as puts in BE Aerospace.[25]

Crocs spent $6 million on U.S. media last year (not including online), up from $2.4 million in 2006, per Nielsen Monitor-Plus.[36] Judge Charles Bullock found on April 11 that there was no violation of Crocs' patent rights by companies the shoemaker claimed were making and selling knock-offs, the commission said. Holeys has actually seen their sales grow from $60,000 to $18-million in just four years.[38] "Any mention of weaker-than-expected U.S. sales, even if it is purely a result of the macro environment, will further spook the Street,'' wrote Robert Samuels at the time. Six analysts recommended buying Crocs shares, while three recommended holding them. No one recommends selling them.[27] In a note to clients, Wedbush Morgan Securities analyst Jeff Mintz downgraded Crocs' stock from a "strong buy" to a "hold." He said he was concerned about potential weakness in core products, which are styles of clogs, and margins. "We believe these sales are at risk of significant decline as consumers, especially in the U.S., begin to move away from the style that defined Crocs," Mintz wrote.[16] "I knew it would end horribly for them," says Garman about Crocs slide. Financial analysts suggest investors hold onto their stocks and wait and see how management does in increasing sales over the next 3 to 6 months.[15]

"Current macrotrends in the environment" have led to weaker-than-expected sales, according to Crocs Chief Executive Ron Snyder, speaking to analysts during a conference call on Tuesday.[29] About 670 people will be out of a job. The company says 262 people in Quebec have already been laid off, and the rest will lose their positions by the end of July. Crocs will be able to meet its North American needs through a flexible manufacturing operation in Mexico, chief executive Ron Snyder said in a conference call Tuesday.[13] "When we're talking about research, development and innovation, we think we can compete." Crocs will be able to meet its North American needs through a flexible manufacturing operation in Mexico, chief executive Ron Snyder said in a conference call Tuesday. "That's a very vertically integrated factory, where the Canadian facility didn't have all of those capabilities," Snyder said. He said it makes sense to consolidate all manufacturing in North America in a lower-cost factory capable of producing both sewn and moulded products as well as compounding its own raw materials.[16]

The Niwot-based shoe manufacturer is shutting down operations due to the higher cost of manufacturing in Canada. It plans to close the plant completely by July, according to Tia Mattson, a spokeswoman with the company. [34] 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.[5]

Excluding a charge related to shutting the Canadian business, Crocs is anticipating first-quarter earnings of 8 cents to 13 cents.[32] For the second quarter, Crocs guided for a revenue increase of 10 percent to 15 percent with EPS of 42 cents to 47 cents, including charges.[20] TRENTON, N.J. - Health products maker Johnson & Johnson reported a 40 per cent jump Tuesday in first-quarter profit, mainly due to the weak U.S. dollar boosting foreign revenues and a charge that depressed results a year ago.[12]

Focus sales are up 23 per cent through March compared with the first quarter of last year.[12] During the conference call, Snyder also said that selling, general and administrative expenses are expected to comprise 39% of sales for the first quarter. This is primarily due to increased marketing and sales efforts tied to building the company into a global brand. Snyder indicated that he would curtail spending from that number, "taking out cost where appropriate," to trim SG&A; to 30% of sales.[36]

The shoemaker, which employed 5,300 workers at the end of 2007, posted sales that more than doubled in each of the seven quarters after the initial public offering. This year, the company is forecasting 15 percent to 20 percent growth, while analysts surveyed by Bloomberg were estimating a 37 percent gain.[30] "Despite general weakness across the industry we continue to witness solid sell-through of our Crocs branded footwear and still expect domestic sales to still grow roughly 13 percent during the quarter.[14]

Sales outside the U.S. more than tripled in the fourth quarter to $109 million.[30] Revenues for the quarter surged to $224.8 million from $112.9 million in the corresponding quarter of the earlier year.[2] Revenues were $3.87 billion, up 14% from $3.39 billion in the first quarter of 2007, the Associated Press reported.[26] Wrote Mintz: "Although the slowing consumer and difficult weather patterns likely had some impact on the company's reduced expectations for the first quarter, second quarter and 2008, we believe that the 15 to 18 percent revenue reduction in the first half represents more than a macroeconomic impact.[20]

In fiscal '08, the company expects revenues to increase 15 percent to 20 percent with EPS of $1.54 to $1.64.[20] The company expects to report revenue of $2.85 - $3.0 billion, and EPS ex-items of $0.41 - $0.45 The consensus is $3.11 billion and $0.57, respectively.[45]

Implied volatility is ringing in at more than 80%. Puts are trading on their heaviest volume in at least a year, with the equivalent of nearly half its open interest tied up in fresh positioning in the July 5.0 puts and October 2.50 puts. Coldwater Creek is currently trading 82% below their 52-week high. Last week it was reported that Coldwater Creek registered negative EBITDA for the fourth quarter of the year, suggesting that the company'''s expenses are outweighing its revenues. This would lend a degree of urgency to possible outside investment measures.[25] Heely's, which has dropped 86 percent in the past 12 months, said in February that Chief Executive Officer Michael Staffaroni resigned. Crocs almost tripled in its first year of trading on the Nasdaq Stock Market.[27] DENVER - The stock for Colorado company, Crocs, Inc. fell the most ever in its history Tuesday in Nasdaq trading.[15]

I never got it," says Sean Garman of Denver. He says he's not surprised Wall Street walked all over Crocs Tuesday. "This has been a pretty steady decline that's occurred for the company stock over the last 4 to 5 months.[15]

No Jibbitz included. Longtime Fool contributor Rick Munarriz will still wear his two pairs of Crocs proudly, yet poorly. He does own shares in Crocs. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.[24] The stock fell Tuesday to a 52-week low of $10.80 a share, which was down about 39 percent from Monday's close of $17.79 a share.[23] Shares of Crocs fell $7.68, or 43.2 percent, to $10.11 Thursday afternoon.[7] Either way, Crocs will be way off the $0.46 a share that analysts were expecting.[24] Four analysts advise buying Crocs shares, five say "hold'' and none recommend selling them, according to Bloomberg data. Jim Duffy at Thomas Weisel Partners LLC cut his rating today to "market weight'' from "overweight,'' while Reed Anderson, an analyst at D.A. Davidson & Co., advises investors to hold Crocs shares, a change from his previous recommendation of "buy.''[30] The report raised concerns about whether the key oil-producing country will have enough supply to help feed growing global demand. For Delta and Northwest to complete their combination to create the world's largest airline, they'll have unions to cajole, politicians to placate and antitrust regulators to convince - as well as persuading investors who have panned the deal to change their minds. Shares of both carriers fell sharply Tuesday after executives said they currently do not plan to cut the number of U.S. flights beyond what they already disclosed individually - something analysts saw as limiting the cost saving or revenue increases from higher fares the airlines could get from the deal.[12] In a follow-up research report released Tuesday, the analyst wrote, "Given the heavy reliance on at-once business (approximately 60 percent of revenue) we are concerned that visibility into the demand outlook remains limited." Jeff Mintz of Wedbush Morgan Securities lowered his rating on the shares to "hold" from "strong buy" on Tuesday.[20]

Intel ( INTC ) ''' In recent days we'''ve pointed to the persistent attraction of Intel calls despite a generally more ambivalent earnings outlook for bellwether stocks. In recent sessions, front-month options in Intel have priced in a possible 5% move on back of the earnings as option traders ''' emboldened by recent positive analyst attention - have shown a preference for call positions exposing them to upside movement in Intel'''s share price.[25] With the implied reading on all Sovereign Bancorp options showing 15% additional price risk over the month to come, front-month options are pricing in as much as a $1.40 price move on back of next week'''s earnings. That'''s fully 17% of the current share price, which is up 1.6% to $8.27.[25]

While the downside in BE'''s share price continued apace today, down 1.3% to $34.00, the nine-fold increase in option volume detected by our market scanners showed a remarkable propensity among traders for the call side of BE'''s outlook.[25]

JJ posted $1.26 a share, six cents ahead of estimates. Again, this wasn't exactly the fastball that Randy Johnson could uncork in his prime. More like the soft cheese served up by a 45-year-old veteran getting by on wiles and experience who wouldn't break glass with his fastball on his best day.[44] The footwear maker came through with a disasterously disappointing first-quarter profit estimate, saying that it expected to post as little as eight cents a share for the quarter, a shortfall whose magnitude would clock in at about 82% below Wall Street's estimates.[44] Crocs also no longer expects the profit of 46 cents a share it had predicted.[32]

DENVER (AP) - Shares of Crocs continue to slide after the manufacturer of the colorful plastic shoes lowered its first-quarter guidance.[23] "Revenue guidance will give further fuel to the argument that the brand's popularity is in sharp decline, and it is tough to argue otherwise.'' He recommends investors hold Crocs shares.[30]

Crocs also authorized a share buyback program of five million shares, effective on or about May 7.[13] The company's Board also authorized a share buyback program to repurchase up to 5 million additional shares.[2]

"The magnitude of the miss is the surprise here,'' said Jeff Mintz, a Los Angeles-based analyst with Wedbush Morgan Securities, which rates the company "strong buy.'' "The shoes are here to stay, but this is a sign the growth in the company has slowed significantly, slower than what we expected.'' Crocs, whose trademark crocodile is carried on about 250 different styles, is known for its colorful clogs with holes. It introduced new products for the spring that included a new heel as well as updated fashions and expanded children's lines. The shoemaker uses a proprietary foam-like resin, called Croslite, as the main material for all of its shoes. [27] In 2006, the company acquired Jibbitz LLC, a unique accessory brand with colorful snap-on products specifically suited for Crocs shoes. Today, more than 1,600 Jibbitz designs are available to consumers for personalizing and customizing their Crocs ™ footwear.[1] "I think there's just a fading of consumer interest in plastic shoes. It's hard to tell how deep this is though." Other footwear companies with products that play in the same categories as Crocs, like Skechers, have experienced similar drops, Shanley said.[36]

Ben Shingler, The Canadian Press April 15, 2008 - 9:41 p.m. MONTREAL - Footwear maker Crocs Inc. (NASDAQ:CROX) will close its Quebec factory in July, ending 670 jobs at the plant that helped create the colourful foam clog sensation. [17] The Teamsters union representing Quebec's Crocs workers was not ready to concede the plant will close.[17]

The plant's closure is the negative twist in what was almost a great Canadian success story on two fronts: A Quebec City group developed the shoe while a Vancouver company has seen huge growth distributing it.[38] The original Crocs shoes were invented in Quebec City by Foam Creations founders Marie-Claude de Billy and Andrew Reddyhoff. The Quebec company was bought in 2002 by three Colorado businessmen who wanted to market their unusual resin shoe under the brand name Crocs.[11]

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.[6] The decision to move to lower-cost facilities doesn't affect the sale of Crocs at almost 3,000 retailers in Canada, the company said today in a statement distributed by CNW Telbec.[30]

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.[2] "Having received the last week of March retail sales data from Sportscan, and recognizing that retail traffic remains severely depressed, we are lowering our sales and earnings estimates to better align current end-market conditions with expected wholesale shipments," said Piper Jaffrey analyst Jeffrey Klinefelter in a note on Thursday.[28]

This week's blue-chips earnings parade got underway in laudatory fashion, but - and let's be honest - it wasn't exactly a major-league fastball that Wall Street had to take its hacks against. That said, the start ranked as encouraging. Johnson Johnson (JNJ) pretty much behaved like the largest, and among the best-managed, health-care companies in the world: it came through with estimate-beating first-quarter results, showing a 40% bulge in its net as it continued to benefit from the acquisition of the former Pfizer consumer products business, which allowed its personal-care products line to grow sales enough to cover some softness in pharmaceuticals and medical devices.[44] Health Care Select SPDR ( XLV ) ''' Today'''s bumper earnings report out of consumer health products giant Johnson & Johnson ( JNJ ) of a 40% increase in Q1 profits failed to patch through to share price action in the Health Care Select Sector, of which Johnson & Johnson is a component.[25]

The last time the stock was less than $11 was March 22, 2006, when the adjusted closing was $10.81 a share. [7] 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]

Several analysts subsequently downgraded shares of Crocs. Jim Duffy of Thomas Weisel Partners lowered his investment rating on Crocs shares late Monday to "market weight" from "overweight."[20] Shares of Crocs (CROX) are headed for a brutal selloff, with shares looking to open as much as 27% lower - certainly enough to qualify for a new low.[44]

Coldwater Creek ( CWTR ) ''' We were flummoxed by a 64-fold increase in trading volume in Coldwater Creek, centered roundly in puts despite a 3.7% gain for shares to $4.76.[25] More than 43 percent of shares available for trading were sold short by investors, according to Bloomberg data. Short sellers are investors who sell borrowed shares with the hope of buying them back after a decline.[27]

CROX closed Monday's regular trading session at $17.79, down 16 cents or 0.89%.[2] The stock was down almost 41 per cent, or $7.26, at $10.53 at midday.[11] The industry's total assets at month-end stood at $686.4 billion, up one per cent from February but down 0.5 per cent from March 2007, according to data released Tuesday by the Investment Funds Institute of Canada.[12]

The redesigned car is taking 7.6 per cent of the U.S. small car market. DETROIT - Delphi Corp. chairman Steve Miller says he is confident the auto supplier will emerge from bankruptcy protection, but says it will take months, not weeks. Miller told the Automotive Press Association in Detroit on Tuesday that the Troy-based company has nearly completed its turnaround plan and is generating new business.[12] The action brings to three the number of GM plants that face a strike threat. DEARBORN, Mich. - Ford Motor Co. (NYSE:F) says it will increase production of its Focus small car by 30 per cent this year to meet higher demand.[12] U.S. retail gasoline and diesel prices also struck new highs. Traders honed in on a report by the International Energy Agency that said Russian oil production dropped this year for the first time in a decade.[12] "On the international front, we remained very encouraged about our business, evidenced by a strong first quarter. We believe we are underpenetrated in most markets and expect to grow at a 30 percent-plus rate outside the U.S. this year. We remain pleased with selling and sell-through of new products, which highlights the diversification of our business over the past year," he said.[20]

Crocs expects to report actual fiscal 2008 first quarter results on or about May 7, 2008.[1]

After the close of trading yesterday (Tuesday), Intel Corp. ( INTC ) reported first quarter profit dropped 12% due in part to spin-off costs.[26]

"We need the traffic in order for our sales to really pick up," Snyder told analysts. U.S. consumers have been cutting back on purchases as they feel pressure from high gasoline and food costs, a slump in the housing market, tight credit and fears of a recession.[29] "The retail environment in the U.S. has become increasingly challenging as consumer spending and traffic levels have slowed,'' Chief Executive Officer Ron Snyder said in a statement.[27] "Retailers in general are planning more cautiously, and therefore, we did not experience the level of at once business we originally expected," said Chief Executive Ron Snyder in a statement. He called the U.S. retail environment "increasingly challenging."[6] 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.[5]

"Canada has been and remains an important market for our company," said Ron Snyder, president and CEO of Crocs, in a Monday press release. [20] Crocs CEO Ron Snyder blames the slowdown in demand on poor Croc-wearing weather and a dismal retail climate, but the more obvious answer, as with any of-the-moment trend, is that people are shunning the shoes many feel are just plain ugly.[38]

Crocs will review a forecast it gave in February for growth of 20 percent to 30 percent in the next three years, Snyder said on the call today.[30] 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] "Retailers in general are planning more cautiously," Snyder said, adding that Crocs did not have the level of business it originally expected.[13]

Crocs will reduce expenses, including air freight, after sales slowed at the end of March, leaving inventory as much 10 percent higher than three months earlier, Snyder said.[30] About 100 sales and marketing jobs will remain in Canada, where Crocs plans to expand in retail, spokeswoman Tia Mattson said in an interview yesterday.[30] A retail operation along with marketing and sales staff will remain in Quebec City.[42] The company plans to have retail locations in Quebec City, Montreal and two other undisclosed locations.[34]

The company reported net income of $3.6 billion, for the first three months of the year, up from $2.57 billion a year ago. [26] Source: Thomson First Call. They saw the next Heelys (Nasdaq: HLYS ). I saw Crocs as the next Nike (NYSE: NKE ), especially after the company expanded into apparel late last year.[24]

The company also said today it will seek a review of a recent ruling by a U.S. International Trade Commission judge on whether Crocs may be allowed to block U.S. imports of what it considers copycat footwear.[30] I also had history on my side. Crocs had done nothing but trounce its quarterly profit targets in every quarter as a public company.[24] Based north of Denver, Crocs was founded in 2002 by three Boulder businessman who wanted to market an unusual resin shoe developed and manufactured by Foam Creations Inc. The company went public in February 2006.[16] We are confident that we still have significant growth prospects into the future and we move forward fully committed to capitalizing on the many opportunities that lie ahead." Crocs will host a conference call to discuss its revised outlook tomorrow, April 15, 2008 at 8:00 am ET. A live broadcast will be available by clicking the 'Investor Relations' link under the Company section at www.crocs.com and at www.earnings.com.[37]

"The company estimated second-quarter growth in revenue at 10-15 percent,'' Mintz said. "That implies a very significant slowdown in the overseas business.'' The stock fell 10 percent on April 2 after JPMorgan Chase & Co. cut its rating to "neutral.''[27] The company's revenues forecast now calls for the top-line result to increase between 15% and 20% over 2007.[4] The revenue forecast represents an increase of approximately 37% to 41% over the prior year, with domestic sales expected to rise 13%, European sales by roughly 90%, and Asia sales up about 75%.[32]

As far as Delta/Northwest is/are concerned, the details had been pretty well broadcast: merger synergies are expected to amount to about $1 billion, which is pretty close to the mid-point of the range of forecasts. That prompted UBS to say the benefits aren't surprising, or, for that matter, "terribly impressive."[44]

During the Past 52-week period, the stock traded in the $15.42 - $75.21 range.[2] Last week, analysts speaking with Women'''s Wear Daily pointed to Coldwater Creek as a possible target of hedge fund plays, noting that hedge funds are drawn to retailers due to sector'''s quick responsiveness to economic turnarounds. Today'''s trader doesn'''t seem so confident that this'''ll be the case, writing a put that would require him or her to buy Coldwater Creek stock for $5.00, and then securing the right to sell it for $2.50 in October. A look at the premium shows that the trader ''' assuming these transactions were connected ''' would still have taken a credit by selling 3,500 lots in the July puts for 1.00 piece, and buying 10,000 lots in the October 2.50 puts for 20 cents apiece, or a combined total of $2000.[25] Mintz downgraded Crocs' stock to a "hold" from a "strong buy." Another analyst called the companies earnings blunder a "significant mismanagement of expenses."[8] In a note to clients, Wedbush Morgan Securities analyst Jeff Mintz downgraded Crocs stock from a "strong buy" to a "hold." He said he was concerned about potential weakness in core products, which are styles of clogs, and margins.[7]

"I was surprised by the magnitude," said analyst Jeff Mintz of Wedbush Morgan Securities Inc. "Given what's going on in the consumer economy, I wouldn't have been surprised by a small reduction. It looks like there might be other significant issues." Crocs has scheduled a conference call to discuss its outlook with analysts today at 6 a.m.[42]

A decent outlook for stabilization and upside seemed apparent in the buying interest we observed in June 35 calls, whose $4.20 premium reflects a 61% chance of the position remaining in the money heading into the summer. Sovereign Bancorp ( SOV ) ''' Prolonging a trend we observed yesterday on back of a crushing earnings disappointment from super-regional bank Wachovia ( WB ), implied volatility in mid-sized regional bank Sovereign Bancorp is showing an outsized elevation above the historic norm despite the fact that the bank has a week to go until its earnings numbers are out. This suggests that the fears of withering credit that investors have pegged to smaller regional banks are particularly high heading into this earnings cycle. [25] Looking to the second quarter, revenue will likely climb 10% to 15% from the same period in the prior year, with earnings of 42 cents to 47 cents.[32] Revenues for the quarter came in at $2.7 billion, versus the consensus of $2.63 billion.[45]

The year-ago quarter included a charge of $807 million for research and development related to the acquisition of Conor Medsystems Inc., a developer of stents.[12] The closure will result in a one-time pretax charge of about $16 million.[13]

The Pan-Canadian Investors Committee for Third-Party Structured ABCP, chaired by Crawford, sought and received a 45-day extension Tuesday to an initial order issued in March by the Ontario Court of Justice. TORONTO - Cashing in on a "strong" research team and an Ontario government subsidy, vaccine maker Sanofi Pasteur (NYSE:SNY) is pouring $100 million into its research and development facility in Toronto, creating 30 new jobs. For Sanofi Pasteur, "this was the right moment in time for us to make this investment here in Toronto," Wayne Pisano, president of the vaccine division of the Paris-headquartered Sanofi-Aventis Group, said Tuesday.[12]

Intel Corporation (Nasdaq: INTC ) reports Q1 EPS of $0.25, or $0.29 ex-items, 4 cents better than the analyst estimate of $0.25. [45] CSX Corporation (NYSE: CSX ) reports Q1 EPS of $0.85, with 5 cents in items, versus the analyst estimate of $0.74.[45]

The shoes, which are sold through department and sporting goods stores as well as other retailers, range in price from $24.99 to $79.99. [30] By 2003, the shoes were selling in 9,500 stores in 70 countries around the world. In 2004, Crocs expanded its product line, added warehouses and shipping programs, and acquired Finproject, beefing up production while cutting off the factory's other distributors, like Vancouver-based Holey Soles Holdings Ltd. In an attempt to squeeze out their competition, Crocs started launching lawsuits against companies with similar shoes citing patent violation, but two international regulatory bodies have recently overturned their claims to intellectual property rights.[38] Canadian production will be moved to plants in Mexico, Italy, Bosnia, Brazil, China, Vietnam and Romania, the company said.[30] The Quebec plant employs 670 people. Crocs said 262 people had already been laid off and the rest will lose their positions by the end of July.[33]

Nearly 3,000 retailers currently sell Crocs products in Canada and will continue to offer all existing product lines as well as new collections of the footwear whose brand and qualities have taken the world by storm.[40] Is it a freaky fad or a new, powerful footwear brand? Last year, the stock soared 72 percent.[14] Over the past year, it has had a string of bad news, including reports of slowing business. Consumers have complained the shoes can get caught in escalators and cause injuries, and one of its patents was recently ruled invalid by the European Union.[6]

Taking the plunge: Opportunity knocked and this entrepreneur rushed in. He didn't change his sales strategy. He changed his client strategy. Charles Myers bootstrapped his company after staggering losses on a business deal gutted the company'''s capital. Now Myers takes direct involvement in each project and lets someone else handle what had primarily been his role, business development.[10] The company's Chief Executive Officer, Ronald Snyder, blames the economy for the sales slowdown.[15] "The shortfall in our top line is primarily attributable to weaker-than-expected domestic sales due to the challenging retail environment,'' Chief Executive Officer Ronald Snyder said in a conference call today.[30]

Because of our current expense structure, a shortfall in sales versus our expectations disproportionately impacts our earnings results," Snyder said in statement.[3]

The spread in question here involved what may have been the purchase of 5,000 lots at the May 32 put strike for 90 cents apiece, funded by the sale of twice as many lots one strike lower at 50 cents per contract, yielding a 10-cent per-lot credit against the 5,000 lot long position for a trader looking for stable, rangebound activity for the health care sector ETF heading into next month.[25]

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] U.S. stocks crept higher on Monday with energy shares buoyed by record oil prices and moods lifted by better-t.[7] Shares of the electronics seller jump more than 50%. Its fourth-quarter loss is wider than expected and full-year outlook reveals continued losses are likely. Wal-Mart raises its guidance, but Kohl's warns.[32]

All Crocs ™ brand shoes feature Crocs ' proprietary closed-cell resin, Croslite ™, which represents a substantial innovation in footwear. [1] The Croslite ™ material enables us to produce soft, comfortable, lightweight, superior-gripping, non-marking and odor-resistant shoes. These unique elements make Crocs ™ footwear ideal for casual wear, as well as for professional and recreational uses such as boating, hiking, hospitality and gardening.[1]

In 2002, shoe company Western Brands bought the rights to a non-slip, breathable resin clog developed by Quebec-based textile company Finproject NA Inc., which was already supplying the footwear to other retailers in Canada.[38]

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. 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 .
3. Crocs gives boot to Quebec City plant
4. Crocs Lowers Guidance [CROX] - RTTNews, Today's Top Stories, Global Newswires, ToDay's Top News,Global Business news .
5. Crocs Cuts 1st-Quarter Outlook | Chron.com - Houston Chronicle
6. Crocs slashes profit and sales outlook; shares drop | Reuters
7. Crocs shares fall on lower guidance - International Herald Tribune
8. Crocs Submerges - Forbes.com
9. Ahead of the Bell: Crocs Down on Outlook | Chron.com - Houston Chronicle
10. Crocs reduces earnings forecast for quarter - Denver Business Journal:
11. Crocs closes its only Canadian plant
12. Business News - AOL Money Canada
13. The Canadian Press: Footwear maker Crocs shares pounded; company closes Quebec plant
14. Crikey, Get a Load of Those Crocs! - News Blog - Daily Brief - Portfolio.com
15. MyFox Colorado | Crocs Stock Fall
16. The Canadian Press: Footwear maker Crocs shares pounded after lower Q1 forecast, Quebec shop axed
17. Crocs shares plummet after lower sales forecast, Quebec plant closure | Markets | Headline News | Canadian Business Online
18. MarketBeat Blog - WSJ.com : Premarket: Crocs Gets Rocked
19. Free Preview - WSJ.com
20. FN
21. Crocs slashes sales, earnings forecasts : More Business : The Rocky Mountain News
22. Crocs Inc. Lowers 1st Quarter, Full-Year 2008 Revenue And Earnings View - MarketWatch
23. Crocs' stock falls on revised forecast - 13WHAM.com
24. While My Crocs Gently Weeps
25. Tuesday's Options Report: BEAV, NOC, INTC, XLV, CROX, CWTR, MTW, SOV - Seeking Alpha
26. Global Investing Roundups
27. Bloomberg.com: U.S.
28. Investors See Holes In Crocs - Forbes.com
29. Crocs shares plummet 40 percent after outlook slashed | Markets | Hot Stocks | Reuters
30. Bloomberg.com: Invest
31. Crocs to fire 600 workers in Canada after cutting profit, sales forecasts - Los Angeles Times
32. Crocs Offers Ugly Forecast | Retail | CROX DECK NKE TBL - TheStreet.com
33. Metro - Crocs to shut plant in Quebec
34. Boulder County Business Report - Online!
35. US: Crocs issues profit warning on US retail downturn: Apparel and textile News & Comment
36. Crocs' Sales Crack Up
37. Crocs, Inc. Lowers First Quarter and Full Year 2008 Sales and Earnings Per Share Guidance
38. Crocs' decline in popularity forces company to close Quebec plant
39. KRDO.com Colorado Springs, Pueblo - Weather, News, Sports - Shares of Niwot-based Crocs fall on lower 1Q guidance
40. CNW Group | CROCS CANADA | Crocs Inc. announces closure of its Canadian plant
41. Crocs to close costly Canadian plant - UPI.com
42. Crocs dims hopes for '08; shares sink - The Denver Post
43. Crocs slashes Q1 outlook, warns of possible loss | Industries | Consumer Goods & Retail | Reuters
44. Stocks To Watch Today : JNJ Does Its Groove Thing, Crocs In Distress, Joining Airlines
45. StreetInsider.com

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