Third Quarter Revenue Increased to $274.9 million
Cash Increased 54.1% to $220.4 million
Consolidated Backlog up 30.3%
NIWOT, COLORADO – October 27, 2011 – Crocs, Inc. (NASDAQ: CROX) today reported financial results for the third quarter ended September 30, 2011.
Revenue for the third quarter of 2011 increased 27.5% to $274.9 million compared to revenue of $215.6 million in the third quarter of 2010. Net income for the third quarter of 2011 increased 20.8% to $30.2 million, or $0.33 per diluted share compared to net income of $25.0 million, or $0.28 per diluted share in the third quarter 2010 which included a one-time tax benefit of $3.0 million, or $0.03 per diluted share.
John McCarvel, President and Chief Executive Officer, stated: “We continued to experience strong global demand versus the prior year period, particularly in Asia. The performance of our spring / summer 2011 product line and the composition of our backlog at September 30, 2011 underscores the progress we have made diversifying Crocs beyond its clog origins. We still remain confident that our long-term brand and growing selection of sneakers, casual shoes, and boots have the ability to penetrate the cold weather selling season in each of our geographic regions. While these are competitive categories with established leaders, we believe we can continue to capture market share and further reduce the seasonality of our business over the long-term.”
Year-over year third quarter changes in the Company’s channel revenue streams were as follows:
- Wholesale sales increased 24.3% to $154.0 million;
- Retail sales increased 31.4% to $95.3 million; and
- Internet sales increased 33.7% to $25.6 million.
Year-over year third quarter changes in the Company’s regional revenue streams were as follows:
- Asia increased 40.6% to $111.2 million;
- Americas increased 18.0% to $122.7 million; and
- Europe increased 25.9% to $41.0 million.
Gross profit for the third quarter of 2011 increased 23.9% to $147.2 million, or 53.5% as a percentage of sales, from $118.8 million, or 55.1% of sales in same period last year. Selling, General, & Administrative expenses increased 21.0% to $111.6 million versus $92.2 million a year ago. As a percentage of sales, SG&A decreased to 40.6% from 42.8% in the third quarter of 2010.
Cash and cash equivalents at September 30, 2011 increased 54.1% to $220.4 million compared to $143.1 million at September 30, 2010. Inventories at September 30, 2011 were $151.1 million, up from $142.5 million at September 30, 2010.
Backlog at September 30, 2011 increased 30.3% to $296.8 million compared to backlog of $227.8 million at September 30, 2010.
For the fourth quarter of 2011, the Company expects revenue to be in the range of $200 to $205 million and diluted earnings per share to be between $0.03 and $0.05.
Mr. McCarvel concluded, “Our fourth quarter guidance reflects recent softness in our European business due to the current macroeconomic conditions. While we expect Europe to remain challenging as we move into 2012, we are pleased with the strength of our spring 2012 backlog in Asia and the Americas. We believe strong 33% growth in our consolidated spring backlog sets us up for continued growth into next year. The response from retailers to our new product introductions has been very positive in Asia and the Americas and we believe it will provide us with good momentum to start the New Year.”
Conference Call Information
A conference call to discuss Crocs’ third quarter 2011 financial results is scheduled for today (October 27, 2011) at 5:00 PM Eastern Time. A webcast of the call will take place simultaneously and can be accessed by clicking the ‘Investor Relations’ link under the Company section on www.crocs.com or at www.earnings.com. To listen to the broadcast, your computer must have Windows Media Player installed. If you do not have Windows Media Player, go to www.earnings.com prior to the call, where you can download the software for free.