Crocs (NASDAQ:CROX) stock plunged 25% on Thursday after the footwear company issued a disappointing forecast for the third quarter, overshadowing solid second-quarter results.
Adjusted EPS for Q2 came in at $4.23, beating the Bloomberg consensus of $4.00 and improving from $4.01 a year ago. Revenue increased 3.4% year-over-year to $1.15 billion, slightly ahead of analyst expectations.
Despite the beat, Crocs guided for Q3 revenue to fall between 9% and 11% from the same period last year, citing ongoing global trade uncertainties and related consumer pressures.
The company expects Q3 adjusted operating margin to range between 18% and 19%, factoring in a roughly 170 basis point hit from current and expected tariffs.
Q2 adjusted gross margin rose to 61.7%, up from 61.4% and above the 60.6% estimate. However, operating margin declined to 26.9% from 29.3% year-over-year, though it still exceeded analyst expectations.
Adjusted operating income fell 5% year-over-year to $309.5 million, while net income declined 2.5% to $237.5 million. The company withheld full-year guidance amid continued market volatility.
