By RTT News, September 10, 2013, 08:17:00 AM EDT
(RTTNews.com) - Crocs, Inc. ( CROX ) has updated its outlook for the third quarter of 2013, and highlighted the capital allocation strategy, also announcing the participation in certain September investor conferences.
For the third quarter, the company now sees revenue between $285 million and $295 million and GAAP earnings per share between $0.15 and $0.18, versus its prior outlook of revenue between $300 million and $310 million and GAAP earnings per share between $0.20 and $0.23. Analysts polled by Thomson Reuters project earnings per share of $0.23, on $305.08 million in revenues for the period. Analysts' estimates typically exclude one-time items.
According to Crocs, both the present and the previous forecasts include $(0.02) per share of ERP implementation expense and $(0.04) per share for adverse foreign currency translation. The current target reflects continued weakness in the firm's Americas region where at once orders in the wholesale channel, as well as performance in the direct to consumer channel, are both below prior view; however the firm expects third-quarter 2013 gross margins to be generally in-line with prior year performance. The softness in the Americas region in the third quarter is somewhat offset by stronger than expected revenue and comparable store performance in the company's Asia Pacific and Europe regions.
Crocs' President and Chief Executive stated, "While revenue for the third quarter of 2013 is coming in below our prior forecasted outlook because of lower than expected revenue in the Americas region, we are very satisfied to date with our Asia Pacific and Europe retail sales performance in the quarter."
Further, The Niwot, Colorado-based company is working to adjust its capital allocation strategy by the end of fourth quarter 2013. This would allow it to maximize returns through opportunistically deploying from $80 million - $100 million of domestic cash to fund potential stock repurchases or other strategic investments in the future.
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