Crocs'S Expected Growth Stagnation In The First Quarter Triggered Investor Discontent.

Due to the current downturn in the first quarter, Crocs Inc. (NASDAQ:CROX) Carlo shares fell 10% before the stock market.

The US Footwear Company, known for its "hole shoes", said its revenue in the first quarter was expected to be 2.80-2.90 billion, which was $283 million in the same period last year, while the gross profit margin was expected to decline to 45.5% from 49.4% in the same period last year.

Investors' dissatisfaction with Carlo's expectations has surpassed the company's four quarter forecasts.

As of the four quarter of December 31st, the adjusted EPS -0.10 US dollar was significantly improved compared with the 2017 US $-0.27, and also significantly exceeded the expected US $-0.23.

Quarterly real losses increased from $28 million 272 thousand to $118 million 700 thousand, while EPS increased from -0.41 to -1.27 dollars.

The loss in the fourth quarter was mainly due to the fact that at the end of last year, the group bought some shares to major shareholder Blackstone Group LP (NYSE:BX) Blackstone Group, which cost US $118 million 700 thousand.

Andrew Rees, chief executive, said that the last quarter saw record sales in several key markets, stimulating sales growth of 8.5% to $216 million, and a fixed exchange rate of 11.3%.

During the period, the closing of stores and the change of business mode reduced revenue by about $7 million.

According to the channel, the fourth quarter wholesale business grew by 9.7%, the e-commerce business grew by 18.9%, and the retail business of the same store grew by 13.4%.

He said that in 2019, the group's revenue growth was expected to increase by 5-7% compared with 2018, while the increase in 2018 was 6.3% to 1 billion 88 million 200 thousand US dollars.

However, in the earnings report, Carlo predicted that the gross profit margin in the current fiscal year will be 49.5%, which will drop by 200 basis points per year, mainly due to the increase in freight rates, the strong dollar and the investment distribution center.

So far this year, Crocs Inc. (NASDAQ:CROX) Carlo's share price has risen by 9.78%, which has lost 11.25% of the same period in the S & P 500 index. However, the fashionable improvement has stimulated the company's share price to soared 133% over the past 12 months, while the S & P 500 index rose less than 3%.

Author: Li Yan