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Crocs Profit Rises, But Stock Down On Weak Outlook

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4/25/2012 6:36 PM ET

Shoe maker Crocs, Inc. (CROX: Quote), 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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by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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Chipmaker Advanced Micro Devices Inc. said Thursday after the markets closed that its first quarter loss narrowed from last year, helped by strong revenue growth in its graphics and visual solutions business. The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue. After trending higher over the past few sessions, stocks showed a lack of direction throughout the trading day on Thursday. The major averages spent the session bouncing back and forth across the unchanged line before ending the day mixed. While the major averages closed on opposite sides of the unchanged line, they all showed only modest moves. U.S. Secretary Of State John Kerry said Thursday that he and his counterparts from Russia, Ukraine and the European Union have reached an agreement on a preliminary plan for ending the ongoing crisis in Ukraine. Kerry was speaking at the end of the Ukraine contact group's first meeting, comprising the foreign ministers of Russia, Ukraine, the EU and the U.S., in the Swiss city of Geneva.
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