Crocs GAAP revenues in Q1 rise 0.2 percent

REPORT_ Crocs said that its GAAP revenue increased 0.2 percent in the first quarter of 2014 to 312.4 million

dollars, in-line with previously provided guidance of 305 million dollars to 315 million dollars. On a constant currency basis, revenue increased 1.5 percent in the first quarter of 2014.

The company reported net income of 0.06 dollars per diluted common share on a GAAP basis in the first quarter of 2014. Excluding certain charges, the company reported a non-GAAP net income1 per common share of 0.14 dollars.

Commenting on the results, Crocs President and Chief Executive Officer, John McCarvel said, “Revenues for our business globally in the quarter were in line with our expectations. From a segment perspective, our Asia segment continued to deliver solid quarterly revenue growth across all channels and our Europe segment remained on the positive trajectory, which started late last year. We saw continued momentum in our non-clog portfolio during the quarter, as new collections like our Stretch Sole, with its patent-pending Fit2U TechnologyTM, and our Busy Day collection helped us further expand our brand into a casual footwear leader.”

In the first quarter of 2014, the company reported GAAP operating income of 16.8 million dollars versus 37.7 million dollars in the comparable quarter in the prior year. On a comparable basis, non-GAAP adjusted net income of 17.3 million dollars in the quarter versus 30.8 million dollars in the first quarter of 2013.

“Factors driving our first quarter 2014 performance included the impact of the shift of the Easter holiday from March into April, negative currency impacts in Japan and Russia, and the change in product mix,” said Jeff Lasher, Crocs Chief Financial Officer, adding, “Russia represents about 15 percent of our business in Europe and our results in the region were impacted by the sudden weakening of the ruble in mid-January. During the three months ended March 31, 2014, Clog silhouettes represented approximately 42 percent of sales, as compared with 47 percent in the three months ended March 31, 2013.”

The company expects GAAP revenue of approximately 370 dollars to 375 million dollars in the second quarter of 2014. Since McCarvel retired as President, Chief Executive Officer and board member on April 30, 2014, the board is in the process of a search for his replacement. Meanwhile, Thomas J. Smach, Chairman of the Board of Crocs, will serve as interim Chief Executive Officer until the board appoints a permanent President and/or Chief Executive Officer.