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What: Shares of footwear company Crocs (NASDAQ:CROX) tumbled during October, falling 16.5% according to S&P Capital IQ data. The decline was driven by the company's Investor Day event on Sept. 30 and a subsequent analyst downgrade the following day.

So what: Crocs used its Investor Day event to cut its guidance for the third quarter. The company's new guidance called for revenue between $270 million and $280 million, well below an analyst consensus of $286.7 million at the time. Crocs reported its third quarter earnings on Nov. 5, and its revenue was in the middle of this new guidance range.

The guidance cut brought about an analyst downgrade from Piper Jaffray, which cut Crocs to a "neutral" rating, lowering its price target to $12 per share from a previous target of $17. The analyst called the stock "dead money" for the foreseeable future, and investors seemed to agree in October.

Now what: Crocs has been struggling to turn around its business, and the slashed guidance did little to reassure investors that the company's plan is working. Crocs expects to achieve a mid-term operating margin between 10% and 12%, roughly what the company managed between 2010 and 2012, but at the moment Crocs is far from achieving that goal. In 2014, Crocs lost money on an operating basis, and during the third quarter this year, the company posted a $20 million operating loss, far worse than its $1 million operating profit during the third quarter of 2014.

The Piper Jaffray analyst cited concern that Crocs' long-term guidance was increasingly being pushed out. Eventually, Crocs expects to grow revenue by 8% annually, but with the company's performance during the third quarter, it's hard to imagine that Crocs will hit this target anytime soon. Investors will be looking for any sign that the turnaround is taking shape during the coming quarters, and further disappointing results could push the stock price down even further.

Timothy Green has no position in any stocks mentioned. The Motley Fool owns shares of Crocs. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.