Crocs shares slip after shoe group tempers annual outlook

Investing.com -- Shares in Crocs (NASDAQ:CROX) dipped sharply in premarket trading on Thursday after the footwear manufacturer tempered its full-year earnings estimates.

The Colorado-based company said it now expects to post adjusted diluted earnings per share in its 2023 year of between $11.55 to $11.85, versus its prior projection of $11.83 to $12.22.

Consolidated annual revenues are also seen growing by around 10% to 11% compared to the previous year, down from a previous anticipated increase of 12.5% to 14.5%.

Sales at its Heydude unit in particular are forecast to expand by approximately 4% to 6% on a reported basis, implying a decline of around 4% to 6% when including the period prior to Crocs' acquisition of the casual footwear brand. Crocs completed its more than $2 billion purchase of Heydude in 2022.

In the third quarter, Crocs reported adjusted earnings per share of $3.25, topping Bloomberg consensus estimates of $3.10. Three-month revenue of $1.05B also slightly beat expectations, thanks in part to solid demand for Crocs' eponymous brand in Asia and "healthy full-price selling."

Meanwhile, both Crocs and Heydude gains market share during the back-to-school season, Chief Executive Andrew Rees said in a statement.