This replaces an earlier item that incorrectly reported the company’s official name. It has been corrected.
Shares of Crocs Inc. CROX, -11.80% were off more than 7% in premarket trading Thursday after the company, which sells shoes under the Crocs and Heydude brands, beat expectations with its second-quarter results but cut its forecast. The company reported net income of $160.3 million, or $2.58 a share, compared with $319.0 million, or $4.93 a share, in the year-before quarter. Crocs said in its release that the decline reflected the result of a favorable tax-legislation change that affected the year-earlier quarter. On an adjusted basis, Crocs earned $3.24 a share, up from $2.23 a year before, while analysts had been expecting $2.67 a share. Revenue rose to $964.6 million from $640.8 million and exceeded the FactSet consensus, which was for $943.6 million. For the full year, Crocs now anticipates consolidated revenues of $3.395 billion to $3.505 billion, whereas its prior outlook called for about $3.5 billion. For the Crocs segment, the company expects about 14% to 17% revenue growth on a constant-currency basis, or 10% to 13% growth on a reported basis. The company was previously modeling upwards of 20% growth. “Big picture, we are concerned about indications of waning interest in the Crocs brand in the core N. America market that has been the engine of growth in recent years,” Stifel analyst Jim Duffy wrote in a note to clients. Crocs also is modeling $9.50 to $10.30 in adjusted earnings per share for the full year, whereas it was previously looking for $10.05 to $10.65. The shares have gained 7.1% over the past three months as the S&P 500 SPX, -0.06% has fallen 0.5%.