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Crocs (NASDAQ:CROX) stock on Thursday was on track for its worst session since late April, after the popular footwear company’s Q2 results showed a slowing pace in revenue growth.
Shares of CROX were 14.9% lower to $101.97 in mid-day trade. The last time CROX stock put in a worse performance was on April 27, the day it reported its Q1 results.
It is worth noting that after ripping a nearly 40% YTD gain to a 2023 closing high of $151.13 on April 24, CROX shares have steadily declined. They are up 10.5% YTD as of their last close.
CROX also provided Q3 guidance ranges with midpoints that came in below consensus. The soft forecast, along with the slowing revenue growth, overshadowed an otherwise strong quarter for the company.
CROX posted Q2 adj. earnings per share of $3.59, which beat estimates by a healthy 61 cents. Meanwhile, revenue of $1.07B – which the company said was a quarterly record – beat consensus by $30M.
However, revenue grew only 11.2% on a Y/Y basis, significantly lower than the nearly 34% jump in revenue reported in Q1.
CROX forecast earning between $3.07 to $3.15 per share in Q3. The midpoint of that is $3.11, below the consensus EPS estimate of $3.12. Q3 revenue is anticipated to be in the range of about $1.013B to $1.034B, the midpoint of which is ~$1.02B. The consensus revenue estimate is $1.06B.
CROX also raised its full year outlook for revenue, operating margin, and earnings per share.