Crocs beats on full year revenue and sees strong Q4 despite store closures

today Mar 1, 2019
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Niwot, Colorado-based Crocs Inc. announced on Thursday strong fourth-quarter results, despite the negative impact of store closures that continued during the three months as part of the shoe brand's transformation plan.

Crocs exceeds expectations with 2019 revenue of $1.09 billion - Facebook: Crocs

For the fourth quarter, Crocs reported revenue growth of 8.5 percent reaching $216 million, compared to 2017. E-commerce grew the most climbing 18.9 percent, while wholesale revenues grew 9.7 percent. Comparable store sales grew 13.4 percent.

In a statement released with the earnings, Crocs said store closures and business model changes during the quarter reduced company revenues by approximately $7 million. However, Crocs' CEO Andrew Rees praised the success of the holiday season, particularly in the U.S., which drove overall sales during the final quarter.

"Our fourth quarter results contributed to what was a very successful year,” said Rees. 
“We had record revenues in many key markets, with the U.S. market leading the way. We have hit multi-year highs in revenues and gross margin, while at the same time significantly reducing our SG&A run rate. Global demand for our brand remains strong, and as a result, we anticipate delivering revenue growth of 5 to 7 percent in 2019," added Rees.

For the full-year 2018, Crocs’ revenues hit $1.09 billion, jumping 6.3 percent over 2017. The company's e-commerce business saw double-digit growth climbing 22.5 percent, while its wholesale business grew 7.8 percent. Comparatively, Crocs' comparable store sales lifted by 10.8 percent. 
Income from operations during the year totalled $62.9 million, up from $17.3 million in 2017. Still, the company saw a net loss of $69.2 million due to its on-going transformation plan.
The company has been closing stores in recent years in an effort to boost its business. Crocs also launched a number of high-profile partnerships during the year, including one with rapper Post Malone and actress Drew Barrymore. 
Looking ahead, the company forecast first-quarter revenue for 2019 to fall between between $280 and $290 million, similar to the $283.1 million recorded in the first quarter of 2018.

Crocs said 2019 revenues are expected to climb 5 to 7 percent over 2018 revenues of $1.09 billion. It expects a negative impact of approximately $20 million resulting from store closures and approximately $20 million of currency changes.

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