Crocs Q4 Profit Down, But Sales Beat Forecasts

Spring styles from Crocs

Spring styles from Crocs

Niwot, CO—Shares of Crocs gained in trading today after the footwear company reported Wednesday that its four quarter sales beat analysts’ expectations.

For the quarter ended Dec. 31, Crocs had a net loss of net loss of $3.6 million, or 4 cents a share, compared with net income of $5.6 million, 6 cents a share, in the prior year period. The fourth quarter results included expenses relating to a new ERP system and other costs. Excluding those costs, adjusted earnings were 4 cents a share. Analysts had expected $0.

Net revenue increased 10.4% to $225 million compared to $203.7 million in sales in the year-ago period, and ahead of analysts’ estimates for $220 million.

“For the fourth quarter we are pleased with our 11% constant currency revenue growth which was ahead of our prior guidance, and our $3.8 million net income, after adjustments,” said John McCarvel, president/ceo. “We saw good reception of our fall holiday products during the season and we continued to position the brand for greater success in the back half of the year. For the quarter we saw gross margins after adjustments for special items in line with the prior year.”

Introducing Huarache Collection

In its full fiscal 2012 results, Crocs reported net income, excluding non-operating items and one-time tax benefits, increased 17%. Revenue increased 12% to $1.12 billion compared with the prior year period.

“Our strong performance in 2012 reflects our ongoing investment in our multi-channel strategy,” McCarvel added. “We saw revenue growth during 2012 of 14% on a constant currency basis, while also approaching a record 50 million units and increasing average selling prices.”

“Looking forward into 2013, our customers are eagerly anticipating delivery of our spring summer line in the next few weeks, including the Huarache collection, which we expect to be the thirtieth member of our million pair seller club, our molded boat shoes, and our women’s wedge line,” McCarvel said.

For its first quarter, Crocs forecast earnings in the range of 32 cents to 34 cents a share on sales between $305 million and $310 million. Analysts expect earnings of 38 cents a share on sales of $310.4 million.

 

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