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Crocs Misses Q2 Expectations; Lowers Guidance

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Shares of Crocs were down nearly 20 percent during mid-day trading Wednesday on news that Crocs performed worse than analysts expected.

The Colorado-based footwear company reported less-than-stellar numbers during its second quarter, posting earnings of $11.7 million or 13 cents per share. This fell short of Wall Street predictions, which had pegged the company’s earnings at 16 cents per share. Revenue decreased 6.3% to $323.8 million, missing analyst estimates of $347.75 million.

Crocs lowered its guidance for the year, blaming retail “headwinds,” particularly in China, which hurt its bottom line. The company says it now expects revenue of $245-$255 million for the third quarter, down from the $289.52 million analysts had anticipated. Furthermore, Crocs also expects revenue to be down low single digits for the remainder of 2016.

“The global retail environment became more challenging as the second quarter progressed,” said Crocs CEO Gregg Ribatt in a statement. “This impacted our wholesale reorder opportunities and contributed to our sales shortfall relative to expectations.”

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