Crocs ( NASDAQ: CROX ) shares fell sharply on Thursday after the company reduced its full-year EPS outlook.
The footwear and apparel retailer posted comfortable beats on top and bottom lines for the second quarter, notching $3.24 in earnings per share alongside a 50.5% jump in revenue from the prior year to $964.6M. Those figures came in $0.55 and $25.67M above the analyst consensus, respectively.
“The consumer demand for both our brands is exceptional and we expect both brands to gain market share in this dynamic environment,” CEO Andrew Rees said. “We remain incredibly confident in our long term growth and our ability to generate best-in-class profitability."
However, after a 380 basis point hit to operating margins in the second quarter and inventories rose 135% in the first six months of 2022, confidence on earnings guidance was reduced.
For the full year, the company expects adjusted EPS of $9.50 to $10.30 as opposed to a prior guide of $10.05 to $10.65. Analysts consensus prior to the release had stood at $10.35.
Shares of the Colorado-based clog manufacturer fell 4.37% in premarket hours on Thursday.
Read more on why B. Riley cut estimates on the company heading into the quarter .
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Crocs shares tumble after cut to full-year forecast