Crocs, Inc. Reaffirms Third Quarter and 2018 Guidance; Announces Participation in the Goldman Sachs 25th Annual Global Retailing Conference
Third Quarter 2018:
With respect to the third quarter of 2018, the Company continues to expect:
$240 to $250 millioncompared to $243.3 millionin the third quarter of 2017.
- Gross margin to be approximately 50 basis points above last year’s 50.8% rate.
SG&A to be slightly higher than last year’s third quarter SG&A of
$120.8 million. This includes non-recurring charges of approximately $6 million, compared to $3.6 millionin the third quarter of 2017. These non-recurring charges consist of approximately $5 millionrelating to the closure of our manufacturing facilities, approximately $4 millionof which will be non-cash, and approximately $1 millionassociated with our SG&A reduction plan.
Full Year 2018:
With respect to 2018, the Company continues to expect:
Revenues to increase low single digits over 2017 revenues of
$1,023.5 million, as we expect double digit e-commerce growth and moderate wholesale growth to more than offset lower retail revenues due to operating fewer stores and business model changes.
- Gross margin to increase approximately 70 to 100 basis points over 2017 gross margin of 50.5%.
SG&A to be slightly higher than our prior guidance of
$485 million, compared to $499.9 millionlast year. This includes approximately $18 millionof non-recurring charges, compared to our prior guidance of approximately $15 million, and $17 millionof non-recurring charges in 2017. These non-recurring charges consist of approximately $14 millionrelating to the closure of our manufacturing facilities, approximately $8 millionof which will be non-cash, and approximately $4 millionassociated with our SG&A reduction plan.
Income from operations to be approximately
$50 millioncompared to $17.3 millionin 2017.
Depreciation and amortization to be approximately
$30 millioncompared to $33.1 millionin 2017.
Income tax expense of approximately
$17 millioncompared to $7.9 millionin 2017.
Forward Looking Statements:
This news release includes “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements include, but are not limited to, statements regarding
prospects, expectations and our revenues, gross margin, and SG&A, income
from operations, depreciation and amortization and income tax expense
outlook. These statements involve known and unknown risks, uncertainties
and other factors, which may cause our actual results, performance or
achievements to be materially different from any future results,
performances, or achievements expressed or implied by the
forward-looking statements. These risks and uncertainties include, but
are not limited to, the following: current global financial conditions;
the effect of competition in our industry; our ability to effectively
manage our future growth or declines in revenues; changing consumer
preferences; our ability to maintain and expand revenues and gross
margin; our ability to accurately forecast consumer demand for our
products; our ability to successfully implement our strategic plans; our
ability to develop and sell new products; our ability to obtain and
protect intellectual property rights; the effect of potential adverse
currency exchange rate fluctuations and other international operating
risks; and other factors described in our most recent Annual Report on
Form 10-K under the heading “Risk Factors” and our subsequent filings
All information in this document speaks as of