Shares of plastic shoemaker Crocs (NASDAQ: CROX) stock tumbled 14.6% through 3:15 p.m. ET despite a strong earnings report and pretty decent guidance Thursday morning.

Analysts expected Crocs to earn only $2.97 per share on $1.04 billion in sales in Q2 2023. As it turned out, Crocs beat those numbers on both the top and bottom lines. Earnings came in at a strong $3.39 per share, while sales just edged out the consensus target at $1.07 billion.  

So if Crocs exceeded expectations, why is the stock down so much? That's an excellent question.

In a note out today, Wedbush Securities analyst Tom Nikic suggested investors might be underwhelmed by weak sales (3% growth) at Hey Dude, a shoe brand that Crocs spent $2.5 billion to acquire two years ago. And that's a valid point.

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Source Fool.com