Crocs: shares plummet 30 per cent, third quarter sales expected to drop between 9 and 11 per cent
CEO Andrew Rees: US consumers remain cautious about spending on non-essential goods. In addition, the company expects to face a $40 million charge in the second half of the year due to tariffs
1' min read
1' min read
Crocs shares lost almost 30% in a single day after sales were forecast to fall between 9 and 11% for the third quarter of this year. Shares of the US company that makes the famous plastic sandals closed down 29.24% on Thursday, before recovering about 3% in after-hours trading.
During a conference call with analysts, CEO Andrew Rees said that US consumers remain cautious about spending on non-essential goods. In addition, the company expects to face a $40 million charge in the second half of the year due to tariffs on imports imposed by President Trump.
Concerns about potential price increases, Rees warned, could further curb consumer spending. In the second quarter, sales at Crocs, which also owns the Heydude brand, rose 3.4 per cent year-on-year to about $1.15 billion. The company posted a net loss of over $492 million, largely due to write-downs in the value of the Heydude brand. In the same period last year, Crocs had posted a profit of almost $229 million.
