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Crocs Shuts Stores, Calls Off Guidance on Coronavirus Concerns
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Retailers primarily have been bearing the brunt of the coronavirus pandemic. In response to the pandemic, they are either shutting down stores or trimming work hours. Incidentally, several retailers have also chosen to call-off their guidance owing to difficulty in ascertaining the impact of the deadly virus on their performance. Some of them even pulled back dividends and halted share repurchases. The latest to join the list is Crocs, Inc. (CROX - Free Report) .
The manufacturer, marketer and distributor of casual lifestyle footwear and accessories informed that all company-operated retail stores in North America will remain closed until further notice. Many of its outlets in Europe are already closed in compliance with local guidelines. However, the company informed that shoppers can continue purchasing on Crocs.com.
Management stated that although the company commenced 2020 on a firm note, it is withdrawing recently provided guidance for the first quarter and full year. This is because of the prevailing circumstances and its unpredictable impact on demand for the merchandise it offers. Moreover, in order to improve financial flexibility amid coronavirus-induced crisis, Crocs has amended its revolving credit facility and suspended share repurchases.
The company’s revolving credit facility with PNC Bank, National Association, and a consortium of other lenders was increased to $500 million from $450 million. Further, the company anticipates ending the first quarter with cash and cash equivalents in the band of $90-$100 million with borrowings outstanding on the credit facility of up to $355 million.
The outbreak has wreaked havoc denting demand, hurting supply chain, slowing down production activities and temporary closure of brick-and-mortar locations. We note that few other retailers such as Abercrombie & Fitch (ANF - Free Report) and Nordstrom (JWN - Free Report) have withdrawn their initial outlook. Moreover, Best Buy (BBY - Free Report) has put its entire share buyback on hold.
Price Performance
Shares of Crocs, which carries a Zacks Rank #5 (Strong Sell), have plunged roughly 58% compared with the industry’s decline of approximately 40% in the past three months.
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Crocs Shuts Stores, Calls Off Guidance on Coronavirus Concerns
Retailers primarily have been bearing the brunt of the coronavirus pandemic. In response to the pandemic, they are either shutting down stores or trimming work hours. Incidentally, several retailers have also chosen to call-off their guidance owing to difficulty in ascertaining the impact of the deadly virus on their performance. Some of them even pulled back dividends and halted share repurchases. The latest to join the list is Crocs, Inc. (CROX - Free Report) .
The manufacturer, marketer and distributor of casual lifestyle footwear and accessories informed that all company-operated retail stores in North America will remain closed until further notice. Many of its outlets in Europe are already closed in compliance with local guidelines. However, the company informed that shoppers can continue purchasing on Crocs.com.
Management stated that although the company commenced 2020 on a firm note, it is withdrawing recently provided guidance for the first quarter and full year. This is because of the prevailing circumstances and its unpredictable impact on demand for the merchandise it offers. Moreover, in order to improve financial flexibility amid coronavirus-induced crisis, Crocs has amended its revolving credit facility and suspended share repurchases.
The company’s revolving credit facility with PNC Bank, National Association, and a consortium of other lenders was increased to $500 million from $450 million. Further, the company anticipates ending the first quarter with cash and cash equivalents in the band of $90-$100 million with borrowings outstanding on the credit facility of up to $355 million.
The outbreak has wreaked havoc denting demand, hurting supply chain, slowing down production activities and temporary closure of brick-and-mortar locations. We note that few other retailers such as Abercrombie & Fitch (ANF - Free Report) and Nordstrom (JWN - Free Report) have withdrawn their initial outlook. Moreover, Best Buy (BBY - Free Report) has put its entire share buyback on hold.
Price Performance
Shares of Crocs, which carries a Zacks Rank #5 (Strong Sell), have plunged roughly 58% compared with the industry’s decline of approximately 40% in the past three months.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>