Shares of Crocs, Inc. (CROX) were down more than three percent in extended trade on Wednesday after the footwear and apparel maker provided earnings guidance for the first quarter well below Street view, while projecting quarterly revenues in line.
The company also reported a loss for the fourth quarter compared to a profit last year, reflecting higher expenses and charges. However, adjusted earnings per share and quarterly revenues topped analysts' expectations.
"For the fourth quarter we are pleased with our 11 percent constant currency revenue growth which was ahead of our prior guidance, and our $3.8 million net income, after adjustments," President and CEO John McCarvel said in a statement.
McCarvel added that the company's fall holiday products were received well by consumers during the season and are continuing to position the brand for greater success in the second-half of the year.
The Niwot, Colorado-based company reported a net loss of $3.61 million or $0.04 per share for the fourth quarter, compared to net income of $5.57 million or $0.06 per share in the prior-year quarter.
Excluding items, adjusted earnings for the quarter were $3.82 million or $0.04 per share. On average, 12 analysts polled by Thomson Reuters expected breakeven per share results for the quarter. Analysts' estimates typically exclude one-time items.
Revenues for the quarter grew 10.4 percent or 10.9 percent in constant currency, to $224.99 million from $203.71 million in the same quarter last year, and topped ten Wall Street analysts' consensus estimate of $219.92 million by a whisker.
Meanwhile, global same store sales decreased 3.5 percent on a currency neutral basis, with Americas decreasing 0.9 percent, Europe dropping 2.3 percent, and Asia declining 8.5 percent.
Sales growth during the quarter was driven by strength across operation regions. Revenue increased 8.1 percent or 9.0 percent in constant currency for the Americas, 11.5 percent or 11.4 percent in constant currency for Asia, and 16.7 percent or 17.0 percent in constant currency for Europe.
Wholesale sales increased 6.1 percent or 7.4 percent in constant currency to $110.39 million, and retail sales grew 20.9 percent or 20.0 percent in constant currency to $89.61 million, while Internet sales declined 2.1 percent or 1.3 percent in constant currency to $25.0 million from last year.
Gross margin for the quarter contracted 170 basis points to 47.3 percent from last year's 49.0 percent. The company noted that "gross margins after adjustments for special items in line with the prior year."
Spring/Summer backlog at the end of the fourth quarter stood at $354.3 million, up 15.3 percent from $307.4 million at the end of the same quarter last year.
The company ended the quarter with 537 retail store locations compared with 430 locations a year ago.
For fiscal 2012, the company reported net income of $131.34 million or $1.44 per share, higher than $112.79 million or $1.24 per share in the prior year. Excluding items, adjusted earnings for the year were $127.65 million or $1.40 per share. Revenues for the full year grew 12.2 percent or 14.0 percent in constant currency, to $1.12 billion from $1.0 billion in the previous year. Street was looking for full-year 2012 earnings of $1.37 per share on annual revenues of $1.12 billion.
Looking ahead to the first quarter, the company expects earnings in a range of $0.32 to $0.34 per share on projected revenues between $305 million and $310 million. Analysts currently expect the company to earn $0.38 per share for the quarter on revenues of $308.97 million.
"As we look out into 2013, the strength of our backlog and our increased retail presence around the globe gives us confidence that our first half revenue growth will be approximately 13 to 15 percent and our initial expectations are for slightly better growth in the second half of 2013 compared with the second half of 2012," McCarvel added.
CROX closed Wednesday's regular trading session at $14.61, down $0.09 or 0.61% on a volume of 3.45 million shares. The stock lost a further $0.51 or 3.49% in after-hours trading.
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