NIWOT, Colo. (Apr. 15, 2008)—Crocs Inc. (Nasdaq: CROX) today announced that it expects its first quarter 2008 revenue to be in the approximate range of $195 million to $200 million and expects a loss per diluted share in the range of 5 cents to 0 cents, both of which are below its previous guidance of expected revenues of $225 million and expected diluted earnings per share of 46 cents established in Feb. At the same time, Crocs lowered its outlook for the fiscal year ending Dec. 31, 2008. The company also announced it has decided to close its Canadian manufacturing operations, letting go of 600 plant workers in the process.

The Adara, a new sandal style from Crocs

Despite this news, the company still forecasts growth for the coming year, with much of that increase seen in Europe and Asia. Crocs Inc.’s revised revenue expectations of $195 million to $200 million represent an increase of approximately 37 percent to 41 percent over the prior year, with domestic sales expected to increase 13 percent, European sales expected to increase approximately 90 percent, and Asia sales expected to be up approximately 75 percent.

President and CEO Ron Snyder explains, “The retail environment in the U.S. has become increasingly challenging as consumer spending and traffic levels have slowed. Despite general weakness across the industry we continue to witness solid sell-through of our Crocs branded footwear and still expect domestic sales to still grow roughly 13 percent during the quarter. However, retailers in general are planning more cautiously, and therefore, we did not experience the level of at once business we originally expected. In addition, because of our current expense structure, a shortfall in sales versus our expectations disproportionately impacts our earnings results.”

“Canada has been and remains an important market for our company,” Snyder added. “While it was a difficult decision to close down our manufacturing facility we believe it was necessary in order to improve our cost structure going forward. We are maintaining our sales and marketing office and retail store in Quebec City and will be expanding our presence throughout the country including the opening of four additional Crocs branded stores this year.”

For the second quarter of fiscal 2008, revenues are expected to increase between 10 percent and 15 percent over the corresponding year-ago period with diluted earnings per share in the range of 42 cents to 47 cents, including a portion of the aforementioned one-time, pre-tax charge associated with shutdown of the company’s Canadian manufacturing operations equaling approximately $4 million, or 3 cents per diluted share.

In addition, the board of directors approved an authorization to repurchase up to an additional 5 million shares of its common stock, effective following the earnings announcement currently expected on or about May 7. This is in addition to the previously announced share repurchase authorization.

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