Crocs (CROX) reported better-than-expected earnings early Tuesday while also announcing its CFO was stepping down. Crocs stock initially jumped before the open but fell sharply in morning trade. Boot Barn (BOOT) is set to report after the close with its shares setting up in a bullish base.
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Crocs Earnings
Estimates: Wall Street expected Crocs earnings to stay flat at 27 cents a share, according to Zacks Investment Research. Revenue was seen ticking up 3% to $321 million.
Results: Crocs earnings came in at 35 cents a share. Revenue grew 5% to 328 million.
Outlook: The company sees Q3 revenue of $240 million to $250 million, in line with analyst targets for $244.3 million. It raised its gross margin guidance slightly to 51.3%. For the full year, Crocs expects a low-single-digit sales gain, with double-digit e-commerce growth and modest wholesale growth to offset lower retail revenues from fewer stores and business model shifts.
CFO Carrie Teffner plans to leave Crocs as of April 1. Anne Mehlman will take over as CFO on Aug. 24. Mehlman had been CFO at Zappo's, owned by Amazon.com (AMZN).
Stock: Shares initially jumped more than 5% to 19.10 before the open on the stock market today, nearing a 19.32 buy point from a 8-week cup-with-handle base. But Crocs stock quickly fell back and fell 7.8% to 16.70 in morning trade.
Baird Equity senior research analyst Jonathan Komp said Crocs' gross margin forecast of 51.3% is "below consensus views for 52.8%." Komp addalso noted that expenses will unexpectedly be up vs. a year earlier, with operating profit below Wall Street estimates.
Ugg boots parent Deckers Outdoor (DECK), which beat estimates last month, was up 0.1%.
Crocs stock has benefited from better-than-expected quarterly reports and a cost-cutting turnaround effort as it has recovered from a long slide. It is up around 43% so far in 2018. But while the stock has beat views on revenue in five of the last six quarters, it has only beaten on earnings in four of them.
The company has been working to attract a new audience to their product, with celebrity endorsers including Drew Barrymore, wrestler and actor John Cena and South Korean singer Yoona.
"E.T." and "Charlie's Angles" actress Barrymore, who claims she is "obsessed" with Crocs, garnered the firm some publicity by releasing her first line of specially designed shoes back in February.
Boot Barn Earnings
Retailer Boot Barn reports fiscal Q1 2019 results after the close.
Estimates: Analysts expect Boot Barn earnings to explode 300% to 12 cents as revenue jumps 15% to $160 million.
Results & Outlook: Check back after the close.
Stock: Shares rose 0.6% to 23.74. Boot Barn stock is shooting for a 25.55 buy point after building an 11-week cup-with-handle base.
The company sells western and work-related footwear, apparel and accessories for men, women and children. It has 232 stores in 31 states, and also sells goods online.
Boot Barn stock has an impressive IBD Composite Rating of 95. It also holds the No. 5 rank in the Retail-Apparel/Shoes/Accessories Industry Group.
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The post Crocs Flops After Earnings Top, CFO Exits appeared first on Investor's Business Daily.
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