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Crocs Q1 comparable store sales rise 7.6 percent

By Prachi Singh

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Business

Crocs, Inc. revenues for the first quarter were 283.1 million dollars, up 5.7 percent or 0.7 percent on a constant currency basis. The company said, top line growth was achieved despite the loss of approximately 12 million dollars due to operating fewer stores and business model changes. E-commerce grew 24.1 percent, wholesale 6.5 percent, and the retail channel delivered positive comparable store sales of 7.6 percent.

“The year is off to a strong start, with first quarter results exceeding guidance on all metrics. Our spring/summer 2018 collection is being well-received, and our LiteRide launch surpassed our expectations. We now expect full year revenues to be up low single digits, as double-digit e-commerce growth and moderate wholesale growth more than offset the decline in retail revenues associated with our store closure plan,” said Andrew Rees, President and Chief Executive Officer in a press release.

Review of Crocs’ first quarter results

Gross margin for the quarter was 49.4 percent, down 50 basis points from last year’s first quarter. Income from operations of 25.9 million dollars increased 66.4 percent compared to 15.6 million dollars in last year’s first quarter. Net income attributable to common stockholders was 12.5 million dollars or 0.15 dollar per diluted share, compared to 7.2 million dollars or 0.08 dollar per diluted share, in last year’s first quarter.

Crocs added that in connection with ongoing efforts to simplify the business and improve profitability, the company would close its manufacturing and distribution facilities in Mexico. Manufacturing has ceased, and the distribution center will be closed by the end of the third quarter.

Crocs announce second quarter and full year forecast

With respect to the second quarter of 2018, the company expects revenues of 315 to 325 million dollars compared to 313.2 million dollars in the second quarter of 2017, gross margin to be slightly above last year’s 54.2 percent rate.

For the full year, the company now expects revenues to increase low single digits over 2017 revenues of 1,023.5 million dollars, as it expects double digit e-commerce growth and moderate wholesale growth to more than offset lower retail revenues due to operating fewer stores and business model changes. Gross margin is expected to be up approximately 70 to 100 basis points over 2017 gross margin of 50.5 percent. Income from operations is anticipated to be approximately 50 million dollars compared to 17.3 million dollars in 2017.

Picture:Facebook/Crocs

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