NIWOT — With stores across many of its markets shuttered for more than a month due to COVID-19, the first fiscal quarter for iconic casual footwear maker Crocs Inc. (Nasdaq: CROX) was never expected to be an easy one.
But Wall Street was expecting better earnings and sales figures than the company posted Thursday, sending Crocs’ stuck stumbling more 16.52% for the day.
Crocs posted earnings of 22 cents per share, missing the Zacks Consensus Estimate of 33 cents per share.
Sales totaled $281 million for the most recent quarter, down from almost $296 million in the same period last year.
“Amidst unprecedented market conditions globally, our total revenue held up well with exceptional performance in our Americas and e-commerce businesses that was overshadowed by COVID-19 related store closures,” Crocs CEO Andrew Rees said on a conference call with investors and analysts. “Despite this recent softness, Crocs remains a strong, vibrant brand that is very well positioned.”
While some of Rees’ comments may sound optimistic, Crocs is bracing for more revenue losses in the near future.
“Many of the 367 company-operated stores as well as many partner stores and wholesale customers’ stores were closed at some point during the first quarter and many remain closed today,” he said. “In all geographies where stores are closed, stores will remain closed until it is safe, and in line with local regulations, to reopen.”
Store closures and reduced retail activity are expected to cause “revenue declines to continue in our retail and wholesale channels as social distancing practices remain in effect,” Rees said. “Further, we expect a larger decline in revenues in the second quarter of 2020, as the majority of our retail and partner stores may be closed for the whole period.”
Crocs has yet to provide earnings or sales guidance for the second quarter or the remainder of fiscal year 2020.
© 2020 BizWest Media LLC