Crocs shares were tumbling after it was revealed that the company’s chief financial officer, Carrie Teffner, would be stepping down this month.
She will be replaced by the current CFO at Zappos, Anne Mehlman and will be leaving the company next April. Mehlman will take over on Aug. 24, when Teffner will transition into a role in strategic projects for the company.
Crocs shared the announcement of Teffner’s departure during its second quarter financial results report. The stock dropped as much as 9 percent in morning trading after Wall Street learned the news.
“Carrie originally joined Crocs as a Board member in 2015 and stepped into the CFO role to assist with the Company’s transformation,” stated CEO Andrew Rees.
He added, “During this time, we have made significant progress, including a return to topline growth and significantly improved profitability.”
For the second quarter, Crocs reported EPS of 35 cents a share. Analysts had been expecting just 31 cents a share. Revenue for the quarter came in at $328 million, beating analysts’ estimate of $321 million.
Looking ahead, the company is expecting revenue between $240 million and $250 million for the third quarter, which would be in line with consensus estimates.
Rees stated during the earnings call, “Q2 was another strong quarter, with revenues up 4.7% even with significant reduction in our retail store fleet. Clogs and sandals performed well on LiteRide, our newest franchise, continue to exceed expectations, resulting in another quarter where we exceeded our revenue and gross margin guidance. Our brand continues to strengthen, as social media engagement grew and Crocs benefited from another quarter of increased PR coverage.”
He added, “At wholesale, we are seeing increased interest from new customers, who would like to add Crocs to their lineup, and our 11.8% DTC comp speaks to growing demand amongst existing consumers and those who are new to the brand.”
“We feel very good about our Q2 results and we’re well positioned for the back half of the year. As you saw in the earnings release, we issued earlier this morning, Carrie has announced her decision to leave Crocs on April 1 next year. In anticipation of her departure, we’re excited to announce that Anne Mehlman will be joining us as our new EVP and CFO. Her experience as a CFO at Zappos as well as her prior experience at Crocs makes her a great choice,” he continued.