Shares of Niwot-based Crocs Inc. experienced their largest drop ever Tuesday, a day after the company lowered its sales forecast and announced layoffs of 600 workers at a Canadian factory.
The stock fell 43 percent to $10.11 at the close of trading Tuesday. It gained some ground after hours, increasing 24 percent. The drop was the largest decline for Crocs since it went public in 2006.
“The shortfall in our top line is primarily attributable to weaker-than-expected domestic sales due to the challenging retail environment,” chief executive Ronald Snyder said during a conference call Tuesday. “Colder-than-normal temperatures across much of the U.S. have delayed the start to the spring season.”
Analysts have expected sales of the popular foamlike shoes to plummet as the fad fades. This may be the beginning of that skid, analysts say.
“Crocs bites the dust,” Robert Samuels, an analyst at J.P. Morgan Securities Inc., said Monday in a research note.
Crocs issued its revised guidance after markets closed Monday.
“Revenue guidance will give further fuel to the argument that the brand’s popularity is in sharp decline, and it is tough to argue otherwise,” Samuels wrote.
The company sells 250 styles ranging in price from $24.99 to $79.99. Crocs was created in 2002 and went public in 2006.
Bloomberg News contributed to this report.
Elizabeth Aguilera: 303-954-1372 or eaguilera@denverpost.com
