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What: Shares of Crocs, Inc. (NASDAQ:CROX) plunged 23% Wednesday after the footwear maker posted a disappointing second-quarter earnings report. The stock traded flat Thursday and Friday morning.

So what: The leisure footwear and apparel company said revenue fell 6% in the second quarter, to $324 million, well below the consensus at $348 million. Earnings ticked up from $0.11 a share to $0.13, but that still missed expectations at $0.15. 

CEO Gregg Ribatt said, "The global retail environment became more challenged as the quarter progressed," which had an impact on wholesale reorders. The decline in sales to the wholesale business was partially counteracted by a 2.9% increase in direct-to-consumer comparable-store sales, which includes retail and e-commerce. Ribatt also remained optimistic about the company's strategic repositioning, saying that consumers responded favorably to new product lines and enhanced marketing efforts.

Now what: Crocs' guidance for the rest of the year was also disappointing, as it sees revenue of $245 million-$255 million for the current quarter, down nearly 10% from a year ago. For the full year, management expects revenue to drop in the low-single digits, saying that the guidance reflects a cautious retail environment, and a slower turnaround in China than expected.

Since the initial fad from Crocs' plastic slip-on shoes wore out, the stock has been a consistent disappointment, and is now trading near five-year lows. Revenue has been falling since 2014, and profits have been declining for even longer.

Given the weakening retail environment and the company's track record, it's easy to see the stock moving even lower from here.

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