Crocs Q4 revenues down 9.7 percent

GAAP revenue increased 0.5 percent for the fiscal year 2014 to 1.2 billion dollars. On a constant currency basis, revenue increased 1.8 percent as compared to the prior year. For the fourth quarter, revenue was 206.5 million dollars, a decline of 9.7 percent as compared to the fourth quarter of 2013. On a constant currency basis, fourth quarter revenue declined 5 percent.

Net loss attributable to common stockholders on a GAAP basis was 0.22 dollars per diluted share for the year and 0.70 dollars per diluted share for the fourth quarter. Non-GAAP adjusted net loss attributable to common stockholders was 30 million dollars in the quarter or compared with a non-GAAP adjusted net loss of 17.7 million dollars in the fourth quarter of 2013.

Commenting on the results, Gregg Ribatt, Chief Executive Officer, said, "We delivered fourth quarter sales in line with expectations. Our business was essentially flat to last year, on a constant currency basis across all regions including the Americas, Europe, Japan and Asia with the exception of Latin America and China. We believe the strategy the company outlined last July will position Crocs for sustained success in the future.”

“In the second half of 2014, the company eliminated non-core product categories, closed more than 100 stores, reduced headcount, and simplified our international operations. We are confident these moves will enable us to streamline our business model, focus on our biggest and most meaningful opportunities, and position the company for growth in the future," Ribatt added.

The company generated net loss attributable to common stockholders of 19 million dollars or 0.22 dollars per diluted share for the full year ended 2014, compared with net income of 10.4 million dollars or 0.12 dollars per diluted share in 2013. The company generated non-GAAP adjusted net income attributable to common stockholders of 50 million dollars for the year ended 2014 compared with non-GAAP adjusted net income of 72.8 million dollars during 2013.

Adding further on the outlook, Ribatt said, "We expect Q1 revenues to be down on a constant currency basis by 10 percent to 12 percent, to a range of 260 dollars to 265 million dollars, driven primarily by declines in our China business. We expect the declines to moderate substantially in Q2 and growth to return in the second half of 2015 as many of the strategic changes we implemented in late 2014 positively impact the business."