Revenue Increased 19.9% to $271.8 million
Net Income Increased 31.8% to $28.3 million
NIWOT, Colo., Apr 25, 2012 (BUSINESS WIRE) --Crocs, Inc. (NASDAQ: CROX) today reported financial results for the first quarter ended March 31, 2012. Revenue for the first quarter of 2012 increased 19.9% to $271.8 million, over revenue of $226.7 million reported in the first quarter of 2011. Net income for the first quarter 2012 was $28.3 million, or $0.31 per diluted share, compared to net income of $21.5 million, or $0.24 per diluted share, in the first quarter of 2011.
Sales growth during the quarter was driven by Asia and Americas which was partially offset by a slight decrease in Europe. Geographically, revenue increased 17.1% for the Americas, increased 40.5% for Asia and decreased 2.7% for Europe.
From a channel perspective, wholesale sales increased 15.9% to $190.7 million, over sales of $164.6 million in the first quarter of 2011. Retail sales increased 33.2% to $60.6 million, over sales of $45.5 million in the first quarter of 2011. The company ended the quarter with 439 retail store locations, which compares to 371 locations a year ago. Global same store sales for the first quarter of 2012 increased 10.2% during the quarter on a currency neutral basis. For the full year, the company continues to expect to open 80 to 100 net store locations. Internet sales increased 23.3% to $20.5 million, over sales of $16.7 million in the first quarter of 2011.
John McCarvel, President and Chief Executive Officer, stated: "Crocs is off to a strong start for 2012 following our first billion-dollar sales year. Our approximate 20 percent top-line sales growth in the quarter was broad-based across channels and regions, with only European wholesale performance lagging primarily due to macroeconomic headwinds in the region. Disciplined execution of our multi-channel business strategy and our growing diversity of all-season, all-occasion footwear styles are driving this growth."
Gross profit for the first quarter of 2012 increased 21.5% to $144.8 million, or 53.3% as a percentage of sales, from $119.2 million, or 52.6% as a percentage of sales in the same period last year. Selling, General, & Administrative expenses (SG&A) increased 17.5% to $104.1 million versus $88.6 million a year ago. As a percentage of sales, SG&A decreased to 38.3% from 39.1% in the first quarter of 2011.
Cash and cash equivalents at March 31, 2012 increased 78.9% to $206.6 million compared to $115.5 million at March 31, 2011. Inventories at March 31, 2012 were $169.1 million, up 9.9% compared to inventories at March 31, 2011 of $153.8 million.
Backlog at March 31, 2012 increased 11% to $289 million compared to backlog of $260 million at March 31, 2011.
For the second quarter of 2012, the Company expects revenue to be in the range of $335 to $340 million and diluted earnings per share to be between $0.61 and $0.63. This guidance is based on an assumed effective tax rate of 22% and currency assumptions of $1.31 US Dollar to Euro and 82.5 Yen to the US Dollar.
"We are pleased to achieve this momentum as we celebrate our 10th year in business. We remain focused on sustainable growth in sales, profits and shareholder value based on the global power of the Crocs brand and our unique comfort message of 'Crocs Inside.'" said John McCarvel.
Conference Call Information
A conference call to discuss Crocs' 2012 first quarter financial results is scheduled for today (April 25, 2012) 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.
About Crocs, Inc.
A world leader in innovative casual footwear for men, women and children, Crocs, Inc. (NASDAQ: CROX), offers several distinct shoe collections with more than 250 styles to suit every lifestyle. As lighthearted as they are lightweight, Crocs(TM) footwear provides profound comfort and support for any occasion and every season. All Crocs(TM) branded shoes feature Croslite(TM) material, a proprietary, revolutionary technology that produces soft, non-marking, and odor-resistant shoes that conform to your feet.
Crocs(TM) products are sold in 90 countries. Every day, millions of Crocs(TM) shoe lovers around the world enjoy the exceptional form, function, versatility and feel-good qualities of these shoes while at work, school and play.
Visit www.crocs.com for additional information.
The matters regarding the future discussed in this news release include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding future revenue and earnings, backlog, future orders, prospects and product pipeline. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances, or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, the following: macroeconomic issues, including, but not limited to, the current global financial conditions; the effect of competition in our industry; our ability to effectively manage our future growth or declines in revenue; changing fashion trends; our ability to maintain and expand revenues and gross margin; our ability to accurately forecast consumer demand for our products; our ability to develop and sell new products; our ability to obtain and protect intellectual property rights; the effect of potential adverse currency exchange rate fluctuations and other international operating risks; our ability to open and operate additional retail locations; and other factors described in our most recent annual report on Form 10-K under the heading "Risk Factors" and our subsequent filings with the Securities and Exchange Commission. Readers are encouraged to review that section and all other disclosures appearing in our filings with the Securities and Exchange Commission. We do not undertake any obligation to update publicly any forward-looking statements, including, without limitation, any estimate regarding revenues or earnings, whether as a result of the receipt of new information, future events, or otherwise.
SOURCE: Crocs, Inc.
Kevin Kim, 303-848-7000
Brendon Frey, 203-682-8200
Katy Lachky, 303-848-7000