- Prachi Singh |
Revenues at Crocs Inc., the company said, were 328 million dollars, up 4.7 percent over the second quarter of 2017, or 2.3 percent on a constant currency basis. Crocs said, this growth was achieved despite the loss of approximately 22 million dollars due to operating fewer stores and business model changes. E-commerce sales grew 23.8 percent, wholesale, 7.2 percent, and retail comparable store sales increased 7.1 percent. Gross margin for the quarter was 55.3 percent, improving 110 basis points over last year’s second quarter.
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Commenting on the company’s second quarter, Andrew Rees, Crocs’ President and CEO, said in a statement: “Revenues and gross margin exceeded our guidance, and our diluted earnings per share were 75 percent above last year’s second quarter based on the strength of our product and the growing demand for our brand.”
The company added that in connection with ongoing efforts to simplify the business and improve profitability, during the second quarter, it closed the manufacturing facility in Mexico and moved ahead with plans to close its last manufacturing facility, which is located in Italy.
For the third quarter, Crocs expects revenues in the range of 240 to 250 million dollars compared to 243.3 million dollars in the third quarter of 2017, and gross margin to be approximately 50 basis points above last year’s 50.8 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, driven by double digit e-commerce growth and moderate wholesale growth more than offsetting lower retail revenues due to operating fewer stores and business model changes. Gross margin is expected to increase approximately 70 to 100 basis points over 2017 gross margin of 50.5 percent.