Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Crocs Profit Rises, But Stock Down On Weak Outlook

RELATED NEWS
Trade CROX now with 

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.

Register
To receive FREE breaking news email alerts for Crocs Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Consumers spent less in July than in the previous month, a surprise retreat that complicates the prevailing belief that the U.S. economic situation is improving. Along with the unexpected drop in spending, government figures released on Friday showed that incomes rose at a slower pace in July than in the previous month. Meanwhile, data on prices indicated that inflation pressures remain tame. India's economy grew faster-than-expected in the three months to June and at the strongest pace in two years, preliminary figures from the Central Statistics Office revealed Friday. Gross domestic product grew 5.7 percent in the April to June quarter, which exceeded economists' forecast for 5.5 percent expansion. The economy grew 4.6 percent in the previous three months. Eurozone inflation slowed as expected in August on falling energy prices giving room for the central bank to support demand and economic recovery without stoking inflation and help the region to create more jobs. The unemployment rate remained unchanged at an elevated level in July. Nonetheless, it was at the lowest since September 2012.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.