Crocs (CROX -0.52%) has reduced its revenue and earnings estimates for the current quarter based on weaker-than-expected sales in the Americas.
The company said today it now expects EPS for Q3 to come in at $0.15-$0.18, a reduction from the $0.20-$0.23 range it provided in late July. The revenue estimate was also updated. Crocs currently estimates it will take in $285 million-$295 million for the period, some 5% lower than the $300 million-$310 million it previously anticipated.
The prior estimates were generally below analyst expectations at the time
Analysts currently expect net income of $0.19 per share and $304.2 million in revenue, according to FactSet. The company reported earnings of $0.49 per share on $295.6 million in revenue in the third quarter of 2012.
In today's press release, the shoemaker said the cut in estimates "reflects continued weakness in the Company's Americas region where at once orders in the wholesale channel, as well as performance in the direct to consumer channel, are both below prior expectations." It said softness in the Americas region was "somewhat offset by stronger than expected revenue and comparable store performance in the Company's Asia Pacific and Europe regions."
Crocs also pointed out that gross margins for Q3 are expected to be similar to those of Q3 2012, and that it was "very satisfied to date" with retail sales in the Asia Pacific and Europe markets.
Crocs also said it plans to set aside $80 million to $100 million for buying back its own stock or other "strategic investments."
The company is scheduled to release its Q3 results next month.
-- Material from The Associated Press was used in this report.
