logo
Share SHARE
FONT-SIZE Plus   Neg

Crocs Profit Rises, But Stock Down On Weak Outlook

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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
American Express Co. said that beginning in April 2018, card members will not be required to sign receipts for their credit card purchases. The company thus joins other major card companies such as Mastercard Inc. and Discover Financial Services Inc., who have previously announced similar changes. Costco members can now enjoy MoviePass subscription service and Fandor streaming service for $89.99. The subscription will be for one year. The offer will be available on Costco website for up to December 18. The annual subscription will offer access to Fandor's library of more than 5000 films and... A Houston woman has said that Spirit Airlines Inc. kicked her family off a flight Friday morning as she did not immediately stop breastfeeding her 2-year-old son. Mei Rui, a concert pianist and cancer researcher, said she was asked by flight attendants to stop breastfeeding her son and put him into his own seat for takeoff.
comments powered by Disqus
Follow RTT