Crocs reducing orders in the second half due to cautious consumer

Ordinary Shoe Company Crocs It plans to reduce orders in the second half of the year in the midst of what the CEO calls the “related” environment for the consumer.

“We see that the US consumer is cautious around the optional expenditures. We already think that it has more dragging against a distinguished consumer and is faced with its implicit future price increases. Our retail partners are more careful in the coming seasons and clearly reduces the dollar.” He said.

“There is an existing environment in the second half, and we see that this is clearly reflected in retail order books. We believe it is time to make bold decisions to maintain and advance the future of a permanent cash flow mode.”

Crocs shares fell approximately 30% on Thursday, after publishing the company’s sharp warnings and publishing a weaker prediction than expected for the current quarter.

Damages on Thursday, losses for the worst day since October 2011.

Crocs imports most of its products from countries such as Vietnam, China, Indonesia and Cambodia, which are currently subject to steep import tariffs.

Rees said that the company has taken steps to maintain a part of its old inventory, including receiving back of the old inventory, especially for the Heydudide shoe brand, to withdraw promotional activities among the retailers and to “reset” with new stock.

“This will create more winds for the sales volume in the next few quarters,” Rees said. He said.

He said chases A earning version Crocs has previously saved a $ 50 million cost.

“Although these actions will affect the upper line of our business in the short term, winning our business will direct margin dollars and support the ongoing cash flow production in the longer term,” he said.

The company reflects the third quarter income well below the Wall Street forecasts. Crocs expects revenue to decrease between 9% and 11% per year for the current quarter. Analysts who participated in the survey by LSEG expected the income to be slightly higher a year ago.

Crocs also foresees a third -quarter -corrected work margin from 25.4% to 25% in the third quarter a year ago.

The company refused to guide full -year guidance.

For the second quarter, Crocs reported a net income in the same period of the previous year, compared to $ 228.9 million or $ 3.77 per share, $ 492.3 million per share or $ 8.82 net loss. This loss was directed on charges of a $ 737 million cash disorder for the Heydudide brand.

According to LSEG, the company recorded $ 4.23 per share, except for this fee and one -time products, and the Wall Street expectation for $ 4.01 per share.

Income increased by 3.4% compared to the previous year and an increase of LSEG was $ 1.15 billion, an increase of $ 1.14 billion.

– Melissa Repko and Sara Salinas of CNBC contributed to this report.