Crocs (CROX) Plunges Nearly 30% After Massive Profit Warning

Shares of Crocs (Nasdaq: CROX) are down 29% in after-hours trading Monday after the company lowered their outlook for Q1, Q2 and the full year 2008. Crocs cited the challenging retail environment in the U.S. Crocs also said it will close its Canadian manufacturing operations in order to consolidate its production at its lower cost Company-owned and third-party facilities.

For Q1, Crocs sees revenues of $195 million to $200, which compares to the consensus of $223.3 million. Crocs sees a Q1 loss of ($0.05) to $0.00, or earnings of $0.08 to $0.13 excluding costs associated with shutdown of the Company's Canadian manufacturing operations, versus the consensus of $0.45.

Crocs expects second quarter 2008 diluted earnings per share in the range of $0.45 to $0.50, excluding charges, versus the consensus of $0.79.

Crocs expects full year 2008 diluted earnings per share in the range of $1.70 and $1.80, excluding charges, versus the consensus of $2.63.

To soften the blow to shareholders, Crocs' board of Directors approved an authorization to repurchase up to an additional 5 million shares of its common stock. [LJ]

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