While for some, plastic shoes might be the ultimate fashion don’t, there are plenty of people more than happy to put them on. Just ask Crocs (NASDAQ:CROX), the company who made a name for itself on the back of plastic-style shoes. Croslite—the primary material used—may not actually be plastic, but it does look similar to more than a few people out there. However, today, the concept didn’t work out so well as Crocs stock was down over 14% in Thursday afternoon’s trading.
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The fall might seem odd on the surface, because Crocs posted a winning earnings report. Its earnings per share figure of $3.59 was an easy win against analyst expectations calling for $2.98 per share. And revenue was a narrower beat but still present, coming in at $1.07 billion against expectations calling for $1.04 billion. The $1.07 billion brought in was still enough to beat figures from this time last year by an extra 11.2%, however.
However, things started to turn around when Crocs offered earnings projections. The range that Crocs posted was, technically, in line with analysts’ projections. However, the midpoint of the range was actually below consensus figures. That made chances of a beat fairly low, and would have required the best of the range to produce such results. That, along with a declining growth rate, made for a bad situation all around. A breakdown by segments only got worse; revenue on its recently-acquired HeyDude shoe line were up merely 3%, while wholesale revenue slipped 8.4% overall.
Despite this, analysts are reasonably sure Crocs will succeed. With five Buy ratings and two Hold, Crocs stock is considered a Moderate Buy. Further, with an average price target of $168.17, Crocs stock offers investors a 64.39% upside potential.
