DOW JONES NEWSWIRES Crocs Inc. (CROX) swung to a third-quarter net loss on write-downs of inventory, goodwill and other items.
Shares were off 32% to $1.30 in recent after-hours trading, after the company also forecast a bigger fourth-quarter loss and lower revenue than Wall Street was expecting, and announced cost-cutting plans.
"Our performance was below expectations," said Chief Executive Ron Snyder, citing "extremely challenging retail environments" in the U.S. and Europe.
The maker of the colorful plastic footwear posted a net loss of $148 million, or $1.79 a share, compared with net income of $56.5 million, or 66 cents a share, a year ago.
The latest quarter's results included a $104.1 million in restructuring, inventory, goodwill and other charges.
Revenue fell 32% to $174.2 million.
In August, Crocs expected earnings of 1 cent to 5 cents a share and $195 million to $205 million in revenue.
Gross margin sank to 1.4% from 60.6%.
Inventories shrank 36% to $141 million, including the $65.8 million write-down of on-hand inventories.
The company said it plans to close a Brazil manufacturing plant in the fourth quarter and cut capital expenditures in half next year as it aims to adjust its business to "lower volumes and revenues."
Looking ahead, Crocs projected a fourth-quarter loss of 50 cents to 65 cents a share on revenue of $100 million to $120 million. Analysts were looking for a loss of 6 cents on $186 million.
Crocs has taken a beating this year as its brand's popularity appears to have faded. To broaden its product portfolio, the shoe maker now sells more than 90 styles of footwear, accessories and apparel, and recently opened a new flagship store in Toronto.
- By Katherine Wegert and Kathy Shwiff, Dow Jones Newswires; 201-938-5400; katherine.wegert@dowjones.com
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(END) Dow Jones Newswires
November 12, 2008 17:09 ET (22:09 GMT)

Publié le 12 novembre 2008 Copyright © 2008 Dowjones