Crocs Inc. (CROX) reported terrible results for the third quarter, missing consensus estimates by a wide margin. Management also reduced its guidance for the fourth quarter.
Accordingly, we are reducing estimates for 2008 and 2009. Our 2008 EPS estimate goes from $0.10 to -$0.52, and our 2009 EPS estimate goes from $0.09 to -$1.01. The difficult macro environment is negatively affecting all consumer discretionary names, and Crocs is no exception.
The company continues to focus on cutting costs and reducing its inventories, but it still has a long way to go. We recommend that investors remain on the sidelines until the company's business trends stabilize.
Read the full analyst report on CROX.
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