Shares of footwear company Crocs (NASDAQ:CROX) slid in trading after the company’s Fiscal Q4 outlook left investors disappointed. In Q4, Crocs expects revenues to decline in the range of 1% to 4% year-over-year, landing between $903 million and $938 million. Adjusted earnings are estimated to be in the range of $2.05 to $2.35 per share in the fourth quarter, short of the consensus estimates of $2.78 a share.
In FY23, revenues are expected to grow in the range of 10% to 11% year-over-year to between $3.9 billion and $3.94 billion. Adjusted diluted earnings in FY23 are likely to be between $11.55 and $11.85 per share.
Andrew Rees, CEO of Crocs commented, “Both our brands gained share during the back-to-school season. During the quarter, we took decisive action around HEYDUDE to accelerate our marketplace management strategy to ensure long-term brand health. As such, we are adjusting our full-year outlook to reflect this shift.”
In the third quarter, Crocs generated revenues of $1.04 billion, up by 6.2% year-over-year and above analysts’ expectations of $1.03 billion. Adjusted diluted earnings increased by 9.4% in Q3 to $3.25 per share.
Is CROX a Buy?
Analysts are cautiously optimistic about CROX stock with a Moderate Buy consensus rating based on three Buys and two Holds. The average CROX price target of $122.20 implies an upside potential of 39.8% at current levels.
