Casual footwear maker Crocs Inc. has delivered impressive first-quarter earnings results, beating the analysts’ estimates by a wide margin. However, the company’s stock still took an 8% hit in the pre-market trading due to a conservative Q2 forecast.
Crocs had reported revenue of $884.2 million, representing a 36.2% constant currency basis growth. The analysts expected growth of around 30% on revenue of $857 million. Adjusted diluted earnings per share (EPS) came at $2.61, representing a 27.3% growth and blowing past the expected $2.16 per share.
“Our exceptional first quarter results are a testament to the strength of our brands,” CEO Andrew Rees said in a statement while crediting some of the success to the new line of Crocs sandals and clogs.
But despite impressive Q1 earnings, the company opted to take a conservative path for the current quarter. Crocs forecasts revenue of $1.03 billion to $1.05 billion for Q2, which would represent 6% and 9% growth compared to the same period last year. This is well below analysts’ estimates of $1.067 billion. Also, the analysts expect $3.23 in EPS, while Crocs predicts $2.98 at the high end.
Crocs’ shares plunged to $136.00 per share in pre-market trading, down from Wednesday’s close price of $147.78. Before the slide, the company’s stock was 38.36% up year-to-date.