Crocs Inc. shares (CROX) slid 5.6% in premarket trade Thursday, after the casual footwear company missed profit and revenue estimates for the first quarter as stores were shuttered during the coronavirus pandemic. The Niwot, Colorado-based company said it had net income of $11.1 million, or 16 cents a share, in the quarter, down from $24.7 million, or 33 cents a share, in the year-earlier period. Adjusted per-share earnings came to 22 cents, below the 31 cents FactSet consensus. Revenue slid to $281.2 million from $295.9 million, also below the FactSet consensus of $296.0 million. The company withdrew 2020 guidance provided on Feb. 27 because of the uncertainty caused by the virus, but said it expects revenue declines to continue in the retail and wholesale channels as long as social-distancing measures remain in effect. "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," the company said in a statement. Crocs has no near-term liquidity concerns and has taken measures to preserve cash. The company has furloughed store workers, cut executive and board pay and deferred certain spending. Its distribution centers remain operational with strict cleaning protocols in place. "Selling, general and administrative expenses ("SG&A") for 2020 is now expected to be between $440 and $460 million, which is approximately $30 to $50 million lower than prior year and approximately $100 million lower than our original plan for 2020," said the company. Capex is expected at about $30 million, down from earlier guidance of $50 million to $60 million. The company has increased a credit facility with PNC Bank, National Association and other lenders to $500 million from $450 million and eased covenants for the second and third quarters. It has temporarily suspended share buybacks. Shares have fallen 44% in the year to date, while the S&P 500 has fallen 13%.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
April 23, 2020 07:21 ET (11:21 GMT)
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