Shares Of Crocs Dive In Afterhours Trading On Reduced Q2 Forecast

Niwot, CO, (AHN) - Shares of Crocs Inc. were cut in half after the close Thursday when the company said a difficult U.S. market will lead to second quarter profit being well below original forecasts.

The footwear company said it now expects second quarter earnings of 3 cents to 7 cents a share, much lower than the original estimate of 42 cents to 47 cents a share.

Crocs said revenue would be $218 million to $223 million as opposed to the $247 million to $258 million range previously given.

For the second quarter, analyst estimates are profit of 41 cents a share on revenue of $248.1 million, according to Thomson Financial.

"The domestic marketplace proved to be more challenging during the second quarter than we had originally anticipated," said Ron Snyder, president and chief executive of Crocs, in a statement, according to the Associated Press.

Crocs also gave a third quarter forecast for profit of a penny to 5 cents a share on revenue ranging from $195 million to $205 million.

The company touched on full year guidance as well, lowering its annual profit target to break-even, which will include a 16-cent a share charge for the shutdown of its Canada operation.

Shares of Crocs dropped in afterhours trade, down 50 percent at $4.50 a share.