Crocs Widens Deficit in the First Quarter

Revenues fell 32 percent at the shoe company.

LOS ANGELES — Crocs Inc. continued to see mounting losses during the first quarter.

For the period ended March 31, the company recorded a net loss of $22.4 million, or 27 cents a diluted share, compared with a loss of $4.5 million, or 5 cents, for the first quarter of 2008. The company said if currency exchange rates were factored out, the loss would have been 23 cents a share.

Revenue during the quarter decreased 32 percent to $137.9 million.

“Our intention in 2009 is to preserve the strength of the Crocs brand while endeavoring to strike a balance between lowering our fixed cost base and responsibly reducing our inventory,” President and CEO John Duerden said in a press release. “I am confident that with the solid foundation already in place and the talented group of people working here we can accomplish our near-term objectives while creating a stronger, more efficient company for the future.”

Since the start of the year, the company said it had reduced its inventory 8 percent to $131.2 million. On a year-over-year

basis, the company has reduced its inventory by 51 percent.

Capital expenditures were also dramatically down for the quarter to $4.4 million, compared with $22.2 million during the same year-ago period.

Looking ahead, the company said it now expects a loss of 15 cents to 30 cents a share in the second quarter on sales of $135 million to $160 million. However, the company declined to offer a full-year guidance, citing uncertainties created by the economic downturn.

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