Why Crocs (CROX) Shares Are Slipping Today - Crocs (NASDAQ:CROX)

Crocs Inc CROX shares are plunging Thursday morning as its second-quarter guidance was below Street expectations. CROX's first-quarter results topped estimates.
CROX reported Q1 2023 revenue growth of 33.9% Y/Y to $884.2 million, beating the consensus of $856.0 million.
Wholesale revenue grew 34.2% Y/Y, and Direct-to-consumer (DTC) sales increased 33.5% Y/Y.
Adjusted EPS of $2.61 beat the analyst consensus of $2.15.
Adjusted gross margin expanded to 54.2% from 53.9% a year ago.
Selling, general and administrative expenses increased to $241.4 million from $206.2 million a year ago.
Adjusted operating margin expanded 130 basis points Y/Y to 27.9% in the quarter.
The company held $125.7 million in cash and cash equivalents as of March 31, 2023.
Outlook: Crocs sees Q2 revenue of $1.026 billion - $1.049 billion (growth of 6% - 9%), missing the Street view of $1.06 billion.
CROX sees Q2 Adjusted EPS of $2.83 - $2.98, below the consensus of $3.23.
For 2023, the company raised guidance for adjusted EPS to $11.17 - $11.73 (vs. prior outlook of $11.00 - $11.31 and consensus of $11.23) and revenues to around $3.945 billion - $4.045 billion at current currency rates (vs. previous guidance of $3.9 billion - $4.0 billion and consensus of $4.01 billion), up 11% - 14% Y/Y.
Price Action: CROX shares are trading lower by 18.5% at $120.40 on the last check Thursday.

Why Crocs Shares Are Slipping Today