Crocs Q2 Results Miss Estimates; Provides Weak Q3 Guidance - Quick Facts

(RTTNews) - Crocs, Inc. (CROX) reported that its net come for the second quarter of 2013 declined to $35.4 million or $0.40 per share from $61.5 million or $0.68 per diluted share in the prior year period.

Adjusting for the impact of the statutory tax audit in Brazil and $1.6 million relating to the implementation of a new ERP system including non-cash accelerated depreciation and cash expenses for program management, training and other non-capitalized costs, the company's non-GAAP adjusted net income totaled $43.1 million or $0.48 per share.

On average, eleven analysts polled by Thomson Reuters expected the company to earn $0.64 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue increased 9.9 percent to $363.8 million from $330.9 million in the same period a year earlier, while analysts had estimated $365.12 million. On a constant currency basis revenue increased 12.5 percent.

The company noted that its wholesale revenue was higher globally, but margins in this channel, particularly in the Americas and Europe, were down due to lower than expected late season at-once revenue and increased discount activity late in the quarter, which negatively impacted earnings per share.

The company said challenges during the quarter included continued weakness in consumer spending in the U.S., Europe and Japan, compounded by colder than normal temperatures during April and May in the U.S. and Europe.

For the third quarter of 2013, the company expects revenue in the range of $300 million to $310 million and earnings per share $0.20 to $0.23. This outlook includes $0.02 per share of ERP implementation expense and reflects an impact of $0.04 for currency translation. Analysts estimate the company to earn $0.39 per share on $324.77 million revenue for the third quarter.

The company's stock plunged 20 percent to $13.48 in the extended hours trading, after being halted for a while.