Crocs Reports Earnings Drop in Q4

Company said it has substantially reduced inventory.

Crocs Cayman style

The Crocs Cayman style.

Photo By Courtesy Photo

As expected, Crocs Inc. reported a fourth-quarter loss after the market on Thursday.

For its fourth quarter ended Dec. 31, 2008, the company reported a net loss of $33.2 million, or 40 cents per diluted share, compared with a profit of $38.3 million, or 45 cents, for the year-ago quarter. Sales during the quarter dropped 44 percent to $126.1 million.

Looking ahead to the first quarter of 2009, the company said it anticipates a diluted loss per share of 17 cents to 32 cents on sales of $100 million to $135 million.

For his part, President and CEO Ron Snyder said he was positive about the company’s future prospects.

“We are confident that our global brand equity remains strong and we continue to be optimistic about the long-term potential of our business,” he said in a statement. For the full year, the company reported a net loss of $183.6 million or $2.22 a share, compared with a profit of $168.2 million, or $2, in 2007.

Crocs also said it reduced its inventory to $143.2 million from $248.4 million at the end of 2007. Most of that inventory reduction was the result of markdowns during the third quarter.