Crocs, Inc. lost $148 million, or $1.79 per share, in the third quarter ended Sept. 30, 2008 after non-cash charges totaling $104.1 million in restructuring, impairment and inventory write-downs. Revenues dropped 32% to $174.2 million from $256.3 million.

“Our performance was below expectations and continued to be impacted by the extremely challenging retail environments in the U.S. and Europe during the third quarter,” President and CEO Ron Snyder. “Based on current trends we have lowered our projected sales volumes and made the strategic decision to further right-size our operations to better align with our lower volumes and revenues… In light of the weak economy, we are closely evaluating our 2009 capital expenditure plan and expect to reduce capital expenditures in 2009 by approximately 50% from 2008.”

Canada and Mexico contributed $7 million in sales, while Europe generated $29 million, down 50% decrease since Q3 2007. CROX attributed the declined to bad weather, negative PR, a deteriorating retail environment and increased presence of knockoff products. Asia sales rose 14% from last year’s third quarter, which the company attributed to growth in new markets and retail. Some of the strongest performing markets were Japan, China, Middle East and Korea. Domestic sales were $69.5 million, down 45% from Q3 2007. The U.S. accounted for approximately 40% of Crocs’ global business.

Footwear sales of 8.1 million units accounted for approximately 91% of revenue. Core products represented 54% of unit sales and, classics 21%. Full-price direct sales grew to 28% of Crocs’ total sales and drove average selling prices higher.

During the third quarter, the company recorded approximately $70 million in inventory write-down, as well as a non-cash good will impairment charge of $22.8 million and an $8 million non-cash asset impairment charge on certain toolings, molding and machinery. The company completed the shutdown of Canadian manufacturing and compounding operations resulting in a $2.5 million dollars charge, and initiated closing of Crocs-owned manufacturing facility in Brazil, which is expected to result in a $1.2 million restructuring charge in Q4. Additionally, Crocs completed global workforce reductions during the third quarter, which it expects will result in approximately $11 million in savings in 2009. This reduction follows Crocs’ layoff of 75 employees in August, and the layoff or relocation of 44 earlier in the year.

CROX now expects to generate revenues between $100 million and $120 million, down from $195.0 million to $205.0 million and diluted EPS of 1 to 5 cents guidance provided in the second quarter. Crocs’ stock price has dropped 97% to 79 cents since Jan. 1  from $46.80.

Gross profit for the third quarter 2008 plummeted to $2.4 million, or 1.4% of revenues, compared to $155.4 million, or 60.6% of revenues, for the third quarter of 2007. Selling, general and administrative expenses, including foreign currency exchange rate gain or loss, were $104.4 million, or 59.9% of revenues, compared to $77.2 million, or 30.1% of revenues, in the three months ended Sept. 30, 2007.