Crocs Shares Sink After Soft Third Quarter Outlook Overshadows Earnings Beat

Crocs, Inc. (NASDAQ: CROX ) shares are trading lower premarket on Thursday after the company reported provided below-consensus third quarter guidance despite second-quarter earnings beat. Adjusted EPS of $4.55, beat the $4.34 analyst estimate. Revenue rose 2.6% year over year (Y/Y) and up 2.0% Y/Y on a constant currency basis to $1.179 billion which exceeded the $1.148 billion estimate. Adjusted gross margin contracted 170 basis points Y/Y to 60.0% in the quarter. Brand Performance The Crocs brand generated revenue growth of 4.3% Y/Y (+3.7% on a constant-currency basis) to $1.0 billion in the quarter. By channel, Direct-to-consumer (DTC) sales rose 12.9% Y/Y (+12.0% in constant currency) to $559 million. Meanwhile, wholesale revenue declined 5.0% Y/Y (-5.4% in constant currency) to $441 million. By regions, North America revenue edged up 0.4% Y/Y to $459 million, while international r...