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Crocs Q1 earnings beat expectations, revenues up 4.5 percent

By Huw Hughes

7 May 2019

Business

Crocs, Inc. reported a strong start to the year on Tuesday, with overall revenues for the first quarter up 4.5 percent (or 9.0 percent on a constant currency basis) to 295.9 million US dollars (226.82 millions pounds) compared to the same period in 2018.

Wholesale revenues at the company grew 5.2 percent, while e-commerce revenues grew 16.5 percent, and retail comparable store sales grew 8.7 percent. Net income was reported at 24.7 million dollars (18.9 million pounds), up from 12.5 million dollars (9.58 million pounds) in the first quarter of 2018.

For the full year, Crocs, Inc. said it expects revenues to grow between 5 and 7 percent over 2018 revenues of 1 billion dollars (766.5 million pounds), and anticipates 2019 revenues will be negatively impacted by approximately 25 million dollars (19.2 million pounds) of currency changes and approximately 20 million dollars (15.3 million pounds) resulting from store closures.

"2019 is off to a great start. Revenues exceeded expectations as demand for our product and excitement around the brand continued to yield accelerated sell-throughs,” CEO of Crocs, Andre Rees, said in the report. “We were particularly pleased with the exceptional direct to consumer performance successfully comping an earlier Easter last year.

“We have now delivered five consecutive quarters of double-digit DTC comp growth. I am more confident than ever in the strength of our brand and our future. As a reflection of our optimism, our board of directors has increased our share buyback authorization by 500 million dollars.”

Photo credit: Crocs, Facebook