Crocs revenue misses; forecasts fourth-quarter below estimates
(Reuters) - Crocs Inc (CROX.O) said weakness in Europe hurt its third-quarter revenue, and the shoemaker forecast fourth-quarter results below analysts' expectations, sending its shares down 5 percent after market.
The company, which is known for its colorful clogs, forecast revenue of $220 million for the fourth quarter, and said it expects to break even on a per share basis.
Analysts were expecting a profit of 10 cents per share on revenue of 234.06 million, according to Thomson Reuters I/B/E/S.
Challenging macroeconomic conditions in the European market and a weaker Euro pressured its results, Chief Executive John McCarvel said in a statement.
Revenue from Europe, which accounts for a little over 13 percent of the company's total revenue, decreased 2.9 percent in the third quarter.
Last week, Wolverine Worldwide (WWW.N) posted lower-than-expected quarterly results as difficult retail conditions in Europe offset strength in the United States.
Crocs, which sells its footwear in more than 90 countries also faced slowing demand in Asia, particularly in Japan.
Crocs Chief Executive Officer John McCarvel had said in an interview in February that the company was investing heavily in Asia and expected it to become its biggest market by the end of next year.
Crocs posted a net income of $45.1 million, or 49 cents per share, compared with analysts' estimates of 43 cents per share.
Total revenue rose 7.5 percent to $295.6 million, while analysts were expecting $302.4 million.
Separately, shoemaker Skechers USA Inc (SKX.N), which reported its first profit in four quarters, also warned of weakness in Europe.
The company said the only segment that did not grow in the third quarter was its international division, which suffered due to the challenging retail environment in Europe and the Euro exchange rate.
Shares of Crocs, which have risen more than 11 percent this year, were down more than 4 percent after the bell. They closed at $16.19 on Wednesday on the Nasdaq.
Skechers' stock was up 6 percent after the bell. It closed at $16.61 on the New York Stock Exchange.
(Reporting by Aditi Shrivastava in Bangalore; Editing by Roshni Menon)
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