12:49 PM EDT, 10/29/2024 (MT Newswires) -- Shares of Crocs ( CROX ) plummeted intraday Tuesday after the shoemaker tempered its 2024 top-line guidance due to weakness at the HEYDUDE brand while reporting a stronger-than-expected third quarter.

Revenue is now seen advancing 3% this year over 2023's record revenue of $3.96 billion. That is at the lower end of Crocs' ( CROX ) prior 3% to 5% guidance range. HEYDUDE sales are predicted to drop 14.5%, compared with its earlier guidance for an 8% to 10% decline.

It is taking "longer than we initially planned for the business to turn the corner," Chief Executive Andrew Rees told analysts on a conference call, according to a Capital IQ transcript. Shares of Crocs ( CROX ) tumbled nearly 18% in midday trade.

In the company's larger Crocs Brands division, sales are expected to grow about 8% in 2024, which is at the midpoint of the company's previous 7% to 9% guidance.

Crocs ( CROX ) expects adjusted earnings per share to range between $12.82 and $12.90 this year, at the higher end of its prior $12.45 to $12.90 guidance.

In the third quarter, consolidated revenue edged higher to $1.06 billion from last year's $1.05 billion, which was the average analyst estimate on Capital IQ for the most recent period. Adjusted earnings per share rose to $3.60 from $3.25 year over year and beat the Street's $3.11 view.

Top-line growth for the three-month period ended Sept. 30 reflected a 7.4% increase in Crocs Brand that was countered by a 17% decline in HEYDUDE, which Rees said was slightly below management's expectations. The company continues to believe in the long-term potential of the HEYDUDE brand, he said, which Crocs ( CROX ) acquired for $2.5 billion in 2022.

For the fourth quarter, Crocs ( CROX ) expects total revenue to be flat to up slightly from the $960.1 million the company posted for the same period of 2023. It sees Crocs Brand revenue advancing by 2% and HEYDUDE logging a 4% to 6% decrease. The company guided adjusted EPS between $2.20 to $2.28. Analysts surveyed by Capital IQ are modeling for normalized EPS of $2.69 in the current quarter.

Price: 112.93, Change: -25.12, Percent Change: -18.20