Crocs Inc. lowered its first-quarter and full-year outlook Monday, blaming decreased retail sales and costs related to the closure of its original production facility in Canada.
Shares of Niwot-based Crocs closed Monday at $17.79 but plummeted nearly 27 percent in after-hours trading.
The company said it expects first-quarter revenue to range from $195 million to $200 million, down from previous estimates of around $225 million. Analysts estimated the company would earn 45 cents a share in the first quarter. Instead, the company said it might lose up to 5 cents a share.
“I was surprised by the magnitude,” said analyst Jeff Mintz of Wedbush Morgan Securities Inc. “Given what’s going on in the consumer economy, I wouldn’t have been surprised by a small reduction. It looks like there might be other significant issues.”
Crocs has scheduled a conference call to discuss its outlook with analysts today at 6 a.m.
“The retail environment in the U.S. has become increasingly challenging as consumer spending and traffic levels have slowed,” Ron Snyder, Crocs president and chief executive, said in a statement.
The company is closing its Canadian factory in July and laying off about 600 workers there, said Crocs spokeswoman Tia Mattson.
“In closing that facility, we are shifting production to higher-capacity, lower-cost facilities,” she said.
The company runs factories in Mexico, Brazil, China, Vietnam, Bosnia and Italy. A retail operation along with marketing and sales staff will remain in Quebec City.
Elizabeth Aguilera: 303-954-1372 or eaguilera@
