Crocs reports GAAP revenue rise of 4.8 percent in Q3

REPORT_ Crocs, reporting its financial results for the third quarter ended September

30, 2014 said that company’s GAAP revenues increased 4.8 percent to 302.4 million dollars, in line with previously provided guidance of 300 million to 305 million dollars. On a constant currency basis, revenue increased 5.4 percent in the third quarter of 2014.

Net income was 0.12 dollars per diluted common share on a GAAP basis in the third quarter of 2014. Excluding certain charges, the company reported a non-GAAP net income per common share of 0.30 dollars.

Commenting on the results, 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 percent 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 percent revenue rise, as US 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 percent overall due to weak retail same-store sales, lower at-once demand and continued weakness in the Yen.”

“From a channel perspective,” Rees continued, “global wholesale revenues climbed 8 percent and global Internet revenues rose 9 percent, with very strong Internet sales results in the Americas. We continue to work to improve performance in our global retail channel, where revenues rose about 1 percent in the quarter but same-store sales were down 4.5 percent. As a follow up to the reorganization efforts in the third quarter, we recently made several key changes to our global management team.”

In the third quarter of 2014, GAAP operating income was 1.1 million dollars versus 17.9 million dollars in the comparable quarter in the prior year. GAAP net income was 15.8 million dollars versus net income of 13 million dollars in the comparable quarter in the prior year. Non-GAAP operating income was 18.5 million dollars versus 21 million dollars in the comparable prior year period.

Gross profit for the third quarter of 2014 was 155 million dollars, or 51.3 percent as a percentage of sales, compared with 153.6 million dollars, or 53.2 percent as a percentage of sales for the prior-year period.

The company expects GAAP revenue of approximately 200 to 210 million dollars in the fourth quarter of 2014. A search is also underway for a new Chief Executive Officer for the company.