Crocs Inc., the maker of the namesake colorful clogs and casual shoes, plunged the most ever after it forecast 2007 revenue that may miss some estimates and inventory rose four-fold.
Crocs shares slumped $21.35, or 29 percent, to $53.40 at 9:58 a.m. New York time in Nasdaq Stock Market composite trading, the biggest decline since the Niwot, Colorado-based company first sold stock to the public in February 2006.
Yesterday, Crocs reported third-quarter revenue of $256.3 million, missing the $258.3 million average estimate of eight analysts in a Bloomberg survey. The company blamed the slower sales on a switch to a larger distribution center in Europe.
Inventory rose fourfold to $195.3 million from $49.1 million a year earlier, the company said on a call with analysts.
“Inventory acceleration and continued infrastructure build cast ambiguity on once-flawless earnings visibility,” David Turner, an analyst with BB&T Capital Markets, wrote today in a note to clients.
Sales in 2007 will be as low as $820 million and per-share earnings will be $1.94 to $1.98, the company said. Analysts were estimating average profit of $1.97 a share on sales of $830.2 million.
Before today, the stock had more than tripled this year.
