Crocs, Inc. (NASDAQ:CROX) stock is being hit hard on Wednesday now that it has released its earnings report or the second quarter of 2016.
The casual footwear company announced net income of $11.7 million, or 13 cents per share, for the second quarter of 2016. This is an increase over the net income of $9.7 million, or 11 cents per share that it reported during the same time last year. However, its earnings per share for the quarter failed to meet the 16 cents that Wall Street was looking for.
CROX reported revenue of $323.8 million in the second quarter of 2016. Revenue reported by the company during the second quarter of 2015 was $345.7 million. The company was unable to reach the $347.75 million in revenue that analysts were expecting for the quarter.
“The global retail environment became more challenging as the second quarter progressed,” Gregg Ribatt, CEO of Crocs, said in a statement. “This impacted our wholesale reorder opportunities and contributed to our sales shortfall relative to expectations. These headwinds were partially offset by a 2.9% increase in global direct-to-consumer comparable store sales.”
Crocs has released its guidance for the third quarter of 2016. The company is expecting revenue to be between $245 million and $255 million. Wall Street is expecting revenue of $289.52 million in the third quarter of the year.
Crocs said that it expects its revenue for the full year of 2016 to be down by low single digits when compared to 2015 revenue. CROX’s revenue for 2015 was $1.09 billion. Analysts are expecting revenue of $1.14 billion for 2016.
CROX stock was down by 22% as of Wednesday afternoon.
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