Shoe maker Crocs, Inc. (CROX), Wednesday reported an increase in first-quarter profit, on higher gross margins and a 20 percent jump in revenues driven by sales in Asia and Americas. Both earnings and revenue for the quarter came in ahead of analysts' expectations.
Nevertheless, shares of Crocs dropped over 5 percent following a weak outlook for the second quarter, with both earnings and revenue expected to fall short of current Wall Street estimates.
First-quarter revenues of Crocs grew 19.9 percent, driven mostly by sales in Asia and Americas, somewhat offset by a decrease in Europe. Revenue increased 17.1 percent for the Americas, while Asia revenues jumped 40.5 percent. Europe sales declined 2.7 percent.
Crocs' first-quarter global same store sales increased 10.2 percent on a currency neutral basis. Wholesale sales increased 15.9 percent, while retail sales improved 33.2 percent.
The Niwot, Colorado-based company ended the quarter with 439 retail store locations, compared to 371 locations a year ago.
Crocs President and CEO John McCarvel observed, "Our approximate 20 percent top-line sales growth in the quarter was broad-based across channels and regions, with only European wholesale performance lagging primarily due to macroeconomic headwinds in the region."
Gross profit, as a percentage of sales, for the quarter increased to 53.3 percent from 52.6 percent in the corresponding quarter last year.
Crocs' first-quarter net income increased to $28.3 million or $0.31 per share from $21.5 million or $0.24 per share in the similar quarter last year. On average, seven analysts polled by Thomson Reuters expected earnings of $0.26 per share for the quarter.
Revenue for the quarter surged 19.9 percent to $271.8 million from $226.7 million a year ago. Six analysts had a consensus revenue estimate of $266.52 million for the quarter.
Looking ahead to the second-quarter 2012, Crocs expects earnings in the range of $0.61 to $0.63 per share. Nine analysts on consensus currently expect earnings of $0.65 per share for the quarter.
Revenues for the second quarter are projected in the range of $335 million to $340 million, well below the current Street estimate of $352.69 million.
CROX closed Wednesday's regular trading at $22.04, up $0.55 or 2.56%, on a volume of 3.34 million shares on the Nasdaq. In after-hours, the stock dropped 5.40% to trade at $20.85.
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