Crocs tumbles as tariffs to drag Q3, bloat inventory

** Shares of casual footwear maker Crocs CROX falls as much as 28.6% to $75.10, its lowest level since November 2023

** President Donald Trump's tariffs on U.S. imports, including the incremental 25% rate on goods from India, expected to hurt Q3 margins by about 170 basis points

** Tariffs also leading to elevated inventory levels, which were up 7% year-over-year at $405 million as of June 30

** Crocs expects tariff impact on its costs of about $40 million in the second half of the year, and about $90 million on an annual basis

** Crocs says it will raise prices to offset some tariff impact, but not a market where it can raise all prices due to consumer caution

** Co says lower-income consumer was not purchasing, and not going to stores, which will affect wholesale and outlet business in H2

** Co expects third-quarter revenue to be down about 9% to 11%, compared to a 2% rise reported a year ago; analysts on average had expected a rise of 0.3%, as per data compiled by LSEG

** Posts Q2 revenue of $1.15 billion, edging past estimates of $1.14 billion - LSEG

** Q2 adjusted EPS of $4.23 also tops estimates of $4.01

** Up to last close, stock down about 4% YTD