Crocs Q3 Earnings Up, But Forecast Weak

In What's New, Industry News by Jeff Prine

crocsNiwot, CO—Crocs Inc. said Monday afternoon that its third quarter nearly a 5% sales increase but its profit missed analysts’ expectations.

For the quarter ended Sept. 30, the footwear brand posted earnings of 12 cents a share, 3 cents short of analysts’ expectations.

Q4 Forecast Below Expectations

Net revenue was up 4.8% to $302.4 million, beating analysts’ estimate for $295.42 million in sales.

Crocs President Andrew Rees said, “Revenues in the quarter were in line with our expectations in three out of four regions. Despite unfavorable exchange rates, we saw 13% year-over-year revenue growth in Europe, with the greatest part of that coming from strong wholesale channel performance. In the Americas, we saw a 10% revenue rise, as U.S. same-store sales trends began to improve in the back half of the quarter. Revenue declined slightly in Asia, where results were substantially impacted by weaker performance in our China wholesale and retail businesses. While Internet sales increased slightly in Japan, revenue for the region was down 9% overall due to weak retail same-store sales, lower at-once demand and continued weakness in the yen.”

Despite the rather good third quarter report, Crocs’ stock fell in trading today because of its weak forecast. The company expects revenue of between $200 million and $210 million for fourth quarter, below analysts $226 million consensus estimates.

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