Crocs sinks after third-quarter forecast for sharp sales decline

Crocs Inc. shares dropped after the shoe company said its efforts to save money amid consumer pressure and tariffs would drive down revenue. 

The company forecast a third-quarter revenue decline of approximately 9% to 11%. Analysts on average expected sales to gain less than 1%. 

The stock fell as much as 19% in Thursday premarket trading in New York. Shares are down 4% this year, trailing a 7.9% gain for S&P 500.

The company will focus on managing its expenses, including cost savings, inventory reduction and a pullback in promotions, chief executive officer Andrew Rees said in a statement.

“Although these actions will impact the top line of our business in the short term, they will position our business to win,” he said.